Mysore Sandal Soap is a brand of soap manufactured by the Karnataka Soaps and Detergents Limited (KSDL), a company owned by the Government of Karnataka in India. This soap has been manufactured since 1916 when Nalvadi Krishnaraja Wodeyar, the king of Mysore set up the Government Soap Factory in Bangalore.[1] The main motivation for setting up the factory was the excessive sandalwood reserves that the Mysore Kingdom had which could not be exported to Europe because of the First World War.[1] In 1980, KSDL was incorporated as a company by merging the Government Soap Factory with the sandal oil factories at Shimoga and Mysore.[2] Mysore Sandal Soap is the only soap in the world made from 100% pure sandalwood oil.[1] KSDL owns a proprietary Geographical indication (GI) tag on the Mysore sandal soap which gives it intellectual property rights to use the brand name, to ensure quality and also prevent piracy and unauthorised use by other manufacturers.[3] In 2006, Mahendra Singh Dhoni, the Indian cricketer was selected as the first brand ambassador of the Mysore Sandal Soap.[4]

History

In the early 20th century, the Mysore Kingdom in India was one of the largest producers

of sandalwood in the world. It was also one of the major exporters of the wood, most of

which was exported to Europe. During the First World War, large reserves of sandalwood

were left over because they could not be exported due to the war. In order to make good use

of these reserves, Nalvadi Krishnaraja Wodeyar, the king of Mysore took the advice of

his diwan, Sir M. Visweshwaraiah and established the Government Soap Factory in

Bangalore. This factory, which was set up in 1916, started manufacturing soaps under the

brand-name Mysore sandal soap using sandalwood oil as the main ingredient. A factory to

distill sandalwood oil from the wood was set up at Mysore in the same year. In 1944, another

sandalwood oil factory was set up at Shimoga.[2] After the unification of Karnataka, these

factories came under the jurisdiction of the Government of Karnataka. In 1980, the

Government decided to merge these factories and incorporate them under a company

named Karnataka Soaps and Detergents Limited. Sharabha, a mythological creature having

a body of a lion and the head of an elephant, was chosen as the logo of the company. This

was because the creature represents the combined virtues of wisdom, courage and strength

and symbolizes the company's philosophy.[2] The company has since diversified and

manufactures incense sticks, talcum powder anddetergents; apart from soaps.

Business

As of March 2006, the Mysore Sandal soap held a 6500 tonne share among the 450

thousand tonnes of soap produced and marketed annually in India.[4] The KSDL's soap

factory in Bangalore that manufactures the Mysore Sandal Soap is one of the largest of its

kind in India having an installed capacity to produce 26,000 tonnes of soap per annum.[2] KSDL had sales of Rs 1.15 billion (about $ 28.75 million) in the year 2004-2005 with the

Mysore Sandal Soap having an average monthly sale of about Rs. 75 million ($ 1.87 million).

Traditionally, the soap has not been marketed in a high profile manner and only during the

year 2006, M. S. Dhoni, the Indian cricketer was selected as the first brand ambassador of

the Mysore Sandal soap. Other marketing strategies being employed to market this soap

include a scheme where the distributors who meet the targeted sales could enter a lucky

draw where they could win silver or gold coins. About 85% of the sales of this soap are from

the South Indian states of Karnataka, Andhra Pradesh and Tamil Nadu. Majority of the users

of this soap are above forty years of age and it is yet to gain more acceptance by the youth

in India. Apart from the regular, Mysore Sandal Soap, KSDL has also introduced the Mysore

Sandal baby soap to target this share of the market. However, KSDL is facing issues like

shortage of sandalwood which has resulted in the company using only 25% of the

manufacturing capacity of its factory leading to a lesser production of soaps. The main

reason for this is the depletion of sandalwood reserves in the state of Karnataka.

To overcome this, KSDL has also started procuring sandalwood by bidding in the open

market and is also considering importing the wood from other countries.[1] The absence of

asustained sandalwood regeneration programme has a taken a big toll on sandalwood

reserves in Karnataka. This is a great irony in a State that once set up factories to use up its

excessive reserves and wears two GI (geographical indication) tags on its sleeve on account

of its historic association with the precious wood.

Description :

The Government Soap Factory was established by the Maharaja of Mysore his Highness Nalwadi Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916. The Sandalwood Oil Division, Mysore was established during the year 1916 and Sandalwood Oil Division at Shimoga was established during the year 1944. In 1980, Government of Karnataka integrated the Sandal oil factories at Mysore and Shimoga and Government Soap Factory at Bangalore and formed Karnataka Soaps & Detergents Limited [KSDL], which has been incorporated as a Company under Company's Act 1956. The Sharabha is a mythological creation from the Puranas. It is illustrated as - the body of a lion with the head of an elephant. It embodies the combined virtues of Wisdom, Courage & Strength. It was adopted as the official emblem of KSDL to symbolize the philosophy of the Company. KSDL has a long-standing tradition of maintaining the highest quality standards right from the selection of raw materials to processing and packaging of the end product. It's full-fledged quality control and R&D Departments single-mindedly pursue quality enhancement and keep pace with the changing preference and perceptions of customers. KSDL is the true inheritor of India's golden sandalwood legacy. Having over 89 years of experience in this field. KSDL to-day is one of the largest producers of Sandalwood oil and Sandal soap in the world, with a turn-over of Rs.125 crores. KSDL's products are regularly exported to UAE, Bahrain, USA, Saudi Arabia, Kuwait, South East Asian countries etc. KSDL's Bangalore-complex has production facilities for Fatty Acids, Toilet Soaps and Detergents. The Soap plant has one of the largest production facilities in the country with an installed capacity of 26, 000 tones per annum. A unique feature of KSDL's Soap plant is its flexibility to process as many as ten different varieties of soaps simultaneously. KSDL also undertakes orders for manufacture of soaps as per the customers' specifications on mutual understanding. KSDL's product range includes Toilet soaps, Incense sticks, coming in different and distinct fragrances like Sandal, Jasmine, Rose etc. and range includes Talcum Powder, Detergent also. KSDL consider quality as one of the principal strategic objective to guarantee growth and leadership in the markets of its operation. We strive to offer superior quality Products and services.

   

Company Name: Karnataka Soaps and Detergents Limited

Key Points: Mysore Sandal Soap

Business Type: Manufacturer

   

Industry Focus: Incense & Incensory,  

Geographic Markets:

   

No. of Employees:  

   

Annual Sales Range (USD):

   

Certificates:  

   

Year Established:  

Legal Representative/CEO:

Company Profile

 

Detergents are manufactured using a synthetic surfactant in place of the metal fatty acid salts that are used in soaps. Made in powder detergents, these detergents are sold as laundry powders, hard surface cleansers, dishwashing detergents, fabric conditioners

etc. Most of the powder detergents have soap in their mixture of ingredients, however it generally functions more as a foam depressant than as a surfactant.

Chemical ProcessesPowder detergents are manufactured using various processes, such as spray drying,

agglomeration, dry mixing or a combination of these. A brief description of these different processes is given below - 

Spray Drying ProcessThe different stages / operations performed in a spray drying process, are - 

Dry and liquid ingredients are first combined into a slurry, or thick suspension, in a tank known as crutcher. 

The slurry is heated and then pumped to the top of a tower where it is sprayed through nozzles (under high pressure) to create small droplets. The droplets fall through a current of hot air, thereby forming hollow granules as they dry.

Collected from the bottom of the spray tower, the dried granules are screened to obtain a relatively standard size. 

After the granules have been cooled, heat sensitive ingredients, which are not compatible with the spray drying temperatures (like bleach, enzymes and fragrance) are added.

Traditional spray drying process produces relatively low-density detergent powders. Advancements in technology have enabled the soap and detergent manufacturers to reduce the air inside the granules during spray drying to obtain higher densities. The high-density detergent powders can be packed in much smaller packages than those needed previously. 

AgglomerationAgglomeration is detergent powder manufacturing chemical technique that results in high-density powders. The process involves blending of dry raw materials with liquid ingredients. The technique involves machines, such as a liquid binder, rolling or shear mixing that causes the ingredients to collide and adhere to each other, producing larger particles. 

Dry MixingDry mixing is a detergent powder manufacturing technique, which is used to blend dry raw materials. The technique may also involve the addition of small quantities of a liquid. 

Ingredients

ProfileThe Government Soap Factory was established by the Maharaja of Mysore his Highness Nalwadi

Krishnaraja Wodeyar and Diwan Sir.M.Visvesvaraya during the year 1916. The Sandalwood Oil Division, Mysore was established during the year 1916 and Sandalwood Oil Division at Shimoga was established during the year 1944.

In 1980, Government of Karnataka integrated the Sandal oil factories at Mysore and Shimoga and

Government Soap Factory at Bangalore and formed Karnataka Soaps & Detergents Limited [KSDL], which has been incorporated as a Company under Company's Act 1956.

The Sharabha is a mythological creation from the Puranas. It is illustrated as - the body of a lion

with the head of an elephant. It embodies the combined virtues of Wisdom, Courage & Strength. It was adopted as the official emblem of KSDL to symbolize the philosophy of the Company.

KSDL has a long-standing tradition of maintaining the highest quality standards right from the

selection of raw materials to processing and packaging of the end product. It's full-fledged quality control and R&D Departments single-mindedly pursue quality enhancement and keep pace with the changing preference and perceptions of customers.

KSDL is the true inheritor of India's golden sandalwood legacy. Having over 89 years of

experience in this field. KSDL to-day is one of the largest producers of Sandalwood oil and Sandal soap in the world, with a turn-over of Rs.125 crores.

KSDL's products are regularly exported to UAE, Bahrain, USA, Saudi Arabia, Kuwait, South East

Asian countries etc.

KSDL's Bangalore-complex has production facilities for Fatty Acids, Toilet Soaps and Detergents.

The Soap plant has one of the largest production facilities in the country with an installed capacity of 26,000 tones per annum. A unique feature of KSDL's Soap plant is its flexibility to process as many as ten different varieties of soaps simultaneously.

KSDL also undertakes orders for manufacture of soaps as per the customers' specifications on

mutual understanding.

KSDL's product range includes Toilet soaps, Incense sticks, coming in different and distinct

fragrances like Sandal, Jasmine, Rose etc. and range includes Talcum Powder, Detergent also. 

KSDL consider quality as one of the principal strategic objective to guarantee growth and

leadership in the markets of its operation. We strive to offer superior quality Products and services

Mysore Sandal SoapProduct Code :TS-01With the oldest known perfumery material Sandalwood as its main ingredient, the Sandal soaps of KS&DL have a definite niche in the soap market. The oil of Sandalwood recommended in ancient ayurvedic texts for skin care, has excellent antiseptic properties and soothes prickly heat and other skin rashes too. The Sandal soaps of KSDL are probably the only soap in the World with pure natural sandalwood oil. The reason why they are used the world over for nourishing and softening the skin.Mysore Sandal soap available in 17gms, 75gms, 125gms, 150gms and 150gms x 3 packed in a set.This soap is made from pure vegetable ingredients and contains natural Mysore Sandal oil. Ingredients:– Sodium Palmate, Sodium Palm Kernelate, Sodium chloride, water, Titanium dioxide, Tetra Sodium, EDTA, Perfume and Cos colours.Request a Quote

Mysore Sandal SoapProduct Code :TS-02With the oldest known perfumery material Sandalwood as its main ingredient, the Sandal soaps of KS&DL have a definite niche in the soap market. The oil of Sandalwood recommended in ancient ayurvedic texts for skin care, has excellent antiseptic properties and soothes prickly heat and other skin rashes too. The Sandal soaps of KSDL are probably the only soap in the World with pure natural sandalwood oil. The reason why they are used the world over for nourishing and softening the skin.Mysore Sandal soap available in 17gms, 75gms, 125gms, 150gms and 150gms x 3 packed in a set.This soap is made from pure vegetable ingredients and contains natural Mysore Sandal oil. Ingredients:– Sodium Palmate, Sodium Palm Kernelate, Sodium chloride, water, Titanium dioxide, Tetra Sodium, EDTA, Perfume and Cos colours.Request a Quote

Mysore Sandal Classic SoapProduct Code :TS-04The only soap of its kind with the careful blending of glycerine and pure sandalwood oil, to moisturise and nourish the skin

With a fragrance that lingers all day long

Mysore Rose SoapProduct Code :TS-05The dew drop freshness of just plucked roses captured in soap form, to give a feeling of a shower with rose petals.Ingredients:- Super max grade talc, Titanium Dioxide, Tetra sodium, Rose Perfume, Cos colour and silicon.

Mysore Herbal CareProduct Code :TS-06Mysore Sandal Herbal care is a formulation of 1g essential oils and herbal frgrances, with neem extracts.The Scents of the 1g herbs which include Basil, Citronella,Clove,Eucalyptes,Geranium,Palmrosa, Rosemary and Ylang Ylang.

Mysore Sandal to launch soaps for different market segments 

Mysore Sandal, the sandalwood soap brand from the state-owned Karnataka Soaps and

Detergents (KS&DL), is launching 'Mysore Sandal Platinum', a super premium soap

priced at a super premium Rs200 — four times pricier than any soap made by an Indian

company.

The most expensive soap brands in India are priced at around Rs50. Apart from KS&DL's

brand, Mysore Sandal Gold is available for Rs50 for a 75 gram bar. Hindustan Lever's

Dove is available in the same range.

However, international organic soaps are available at more than Rs 100 in supermarkets.

KS&DL is also planning to expand its consumer base at the lower end of the market. For

the first time, KS&DL is also planning to launch a new soap in the popular category in

April. 

Branded as 'Wave', the new non-sandal soap will be priced at Rs13 for 100-gram bar.

KS&DL is currently conducting test marketing in Karnataka and aims to launch a new

marketing campaign.

KS&DL, among the oldest manufacturers of sandalwood soap in India, has developed a

new formulation under its existing product, Mysore Sandal Soap, exclusively for the US

market. The new 125-gram soap is branded as 'Mysore Sandal Classic' and is enriched

with moisturisers and conditioners to meet the needs of consumers in countries facing

severe winter.

KS&DL has also redesigned the packaging of some of its soaps and talcum powder and

has relaunched them.

KS&DL is also entering the agarbathi (incense stick) market with a new brand —

Nagachampa - later this month. The company has tied up with a non-government

organisation in Dharmasthala to manufacture these agarbathis and sell them in a pack of

20 sticks priced at Rs 5.

: Karnataka Soaps and Detergents Ltd (KSDL), which is synonymous with the Mysore sandal- wood soap, was established way back in 1916 as Government Soap Factory by the then Maharaja of Mysore, Nalwadi Krishnaraja Wodeyar, and his Diwan M Visvesvaraya. Even today with severe competition from heavyweights like HLL and Godrej, KSDL is a well-recognised entity with a strong brand recall both in the domestic and international markets. It has wiped out the accumulated loss of Rs 100 crore and is going to post profit for the third consecutive year in fiscal 2007-08 on a topline of Rs 160 crore. BH Anil Kumar, managing director of KSDL, spoke to FE’s Kavitha Venkatraman, during his recent visit to Hyderabad. Excerpts:

Are you planning to diversify into other product categories?

Nearly 90% of the turnover of the company comes from sandalwood soaps, which is in the premium category. Inadvertently, we have become a single product company. This is not healthy for the company, as the availability of sandalwood has reduced over the year. So, last year, we came out with products in the popular segment, which is a volume driven business. KSDL is outsourcing products for the segment from other manufacturers who are operating in the excise duty-free zones. This initiative has yielded very good dividends. The hand-wash and talcum powder, which were launched in Karnataka sometime back, have got good response and we plan to make it available in Chennai and Andhra Pradesh. Besides, plans are on to launch liquid soaps, showers and bath gels.

Is divestment a good option for your company?

KSDL has been dropped from the disinvestment list. It is still a 100% government understanding with paid up capital of Rs 32 crore. But to bring in further investments for the future growth of the company, it is better to initially offload at least 25% government stake. In fact, we are trying to get into a Memorandum of Understanding (MoU) with the state government by asking them for certain amount of relaxation on operational aspects. We have proposed to the government that we will achieve all the performance targets laid out by them on the condition that they should allow us to explore various options to raise resources for the future growth of the company. The papers are before the state finance department and we are expecting the MoU to take place very soon. If it happens, then we will be able to look at options like giving out limited stock options to our existing workforce as we have large staff strength of about 900 employees; raise funds from government institutions or raise money from the market with proper credit rating.

How are you tackling the shortage of raw material?

Sandalwood availability is decreasing year after year. Unless steps are taken, it will vanish one day. At KSDL, we have started a scheme for progressive farmers. But it has not given good results as the gestation period for sandalwood tree is very long and there are a lot of restrictions on harvesting. As per the law, the harvesting can be done only through the forest department and the procedures are very cumbersome and time consuming. This puts off the farmers. Sandalwood has to be cultivated as a commercial crop. It will help only then. So, we are asking the government to simplify the procedures as they did with rosewood and teakwood cultivation.

Are you looking at automation to improve the production levels?

We have about 900 people working at the factory, including nearly 350 employees from the marketing side. But the productivity levels are pretty low. For instance, at our sandalwood oil extraction division, nearly 57 people work. But with shortage of raw material, they work only for three months and they remain idle for the remaining nine months. At the soap production factory, after the capacity expansion programme in 1982, production went up to 26,000 metric tonnes per year from 6,000 metric tonnes. But after 1984, we have never crossed the production level of 7,000 metric tonnes, which is only 27% of the overall capacity. The capacity expansion programme cost us Rs 20 crore and it was done through market borrowing at commercial rate. And this is precisely the reason why the company suffered.

Now, despite the competition, we have started showing profits. We should close with a profit of Rs 6 crore during the year ended March 2008. This is the third consecutive year the company is posting profits.

KSDL is trying to put two finishing lines from making soap noodles to packing the end product. Since nearly 50% of our workforce will retire in the next five years, we plan to go in for semi-automatic lines so that the remaining workforce does not remain idle. If we relocate completely, then the project will cost Rs 20 crore, otherwise the estimated outlay will be Rs 10 crore.

If you decide to relocate completely, what would you do to your existing plant?

The existing plant in Bangalore is spread across 39 acres of land. Now over the years the value of land has appreciated very well. So we can either completely relocate and use the land for developing real estate projects with a joint venture partner or restrict our presence to say 10-15 acres and give the remaining land for development. We are looking at both the options. We have appointed Jones Lang Lasalle Meghraj as our consultants to analyse all the available options and give us their suggestions. KSDL is prepared for relocation as the Karnataka government has allotted us about 20 acres of land in Dobbspet on the Pune highway.

How well are you doing in the export market? And what are your expansion plans?

Export accounts for only 4% of the overall turnover of the company. The year ending March 2008 we did exports worth Rs 6 crore and for the next fiscal our target is Rs 8 crore. Our traditional market has been the Middle East, but we are trying to expand in the US, the UK, Europe, Africa and Australia now. We have appointed one distributor each in these countries and through them we are trying to get placement of our brands in big retail chains. The Geographic Indicator registration that we got for Mysore Sandal has helped us to a greater extent in the foreign market.

Karnataka Sandal Soaps

Mysore Sandal Soap (MSS) was initially produced at the Government Soap factory of India and was nurtured by the Maharaja of Mysore. Later, MSS became a flagship of Karnataka Soaps and Detergents Limited (KSDL), a Karnataka state body founded in 1916.

Distilling of sandalwood oil became exclusive to KSDL, which enjoys an unmatched reputation and popularity as the world's only and obviously the most popular manufacturer of pure and natural sandal soaps.

Specialties of Mysore Sandal

Sandalwood, the premium ingredient of Mysore Sandal Soap, known as queen of perfumes, is one of the oldest known. Sandalwood oil owing to its excellent antiseptic and anti-dandruff properties has been recommended in ancient ayurvedic texts for skincare. It soothes prickly heat; it removes skin rashes and internal ulcers.

Procedure for procuring Sandalwood oil

Sandalwood oil is extracted from trees, which are 40 to 50 year old. The ripened a tree is, greater are the oil extracts. The maximum amount is extracted from the root and stem part of a tree.

KSDL sandal soaps are made of pure, natural sandalwood oil distilled from trees in forests of Karnataka.