Karnataka Soaps launches turmeric soap in Andhra

Nearing ten decades of existence with its popular flagship product, Mysore Sandal Soap, state-owned Karnataka Soaps & Detergents Limited on Monday launched a new turmeric soap, Wave, exclusively for the Andhra market as part of an ongoing effort to broaden the base for its product range. The company had also entered incense sticks manufacturing recently.

Though increased cost of raw material combined with the problem of sandalwood supplies is impacting the company's margins, sales and soap production have been growing year-on-year, according to BH Anil Kumar, managing director of Karnataka Soaps.

While the company targets to increase the production of sandalwood soap to 8,000 tonne during the current year from 7,200 tonne last year, it proposes to sell 10 lakh pieces of Wave in Andhra this year.

"The product is priced at Rs 14 per 100 gm cake just to win over the large consumer base though the price offers almost no margins to the company," Anil Kumar said.

The new product, designed for Andhra which is said to be the largest turmeric soap market in the county, will be marketed in other states in future, based on its success here.

The company is planning to enter into MoUs with farmers to grow sandalwood in a bid to increase its availability for the soap and oil manufacturing business.

Under the new initiative, the company would provide saplings, technical knowhow and inputs to farmers initially and will buy back the sandalwood after it's fully grown, and at that time's prevailing market price.

Mysore Sandal Soap brand corners 70 per cent of the country's sandalwood soap market share and is also exported to countries in Europe, Africa and the West Asia.

The company hopes to increase the turnover to around Rs 160 crore this year, compared with Rs 132 crore last year.