Karnataka Soaps and Detergents Ltd (KSDL), the makers of the famous Mysore Sandal Soap, launched two new products under the brand WAVE at Hotel Ramada Plaza, Juhu. Mr. Suresh H Shetty, Hon'ble Minister of State for Medical , Higher & Technical Education and Sri. Kishore Gajbhiye, IAS, Addl. Municipal Commissioner-Western Suburbs, Mumbai officially launched the two new products Wave Turmeric Soap and Wave Herbal Liquid Hand Wash in Mumbai city. Wave is simultaneously being launched in the State of Maharashtra, Gujarat, Madhya Pradesh & Chattisgarh. "After launching WAVE in South, West is our obvious choice as it is centrally located and has large consumer base for Turmeric Soap," said B.H. Anil Kumar, Managing Director KSDL
Currently on a product diversification plank, KSDL launched WAVE due to the scarcity of their premium raw material sandalwood and consequently the increased costs of procuring raw material. In the recent past, the company has diversified its product line and forayed into the baby care segment and cosmetic segment by launching Baby Soap, Baby Powder and in the cosmetic segment Sandal Talcum Powder have been launched. Also it has launched Herbal Care Soap in the Herbal segment. The 90-year-old public sector unit plans to cater to the non-premium segment of the market through various products planned under the brand WAVE, including soap bars, liquid hand wash, shower gels, body spray and talcum powder. The product diversification has been thought of partly to meet the evolving business opportunity in the personal healthcare segment and also to take the pressure off from the high cost /scarce pure sandalwood oil-based soap products.
"The sandalwood we currently have under forests and cultivation will last only few more years. So we need to produce non sandal products for company to sustain in the long run. About 90 per cent of the company's current revenues come from sales of the flagship premium product, Mysore Sandal Soap, and the company wants to reduce this dependency," said B.H. Anil Kumar talking to press persons in connection with the official launch of WAVE in the Western Region.
WAVE Turmeric Soap is targeted at young women between 18 and 30 years, especially working professionals, students and housewives. This soap is made out of pure natural vegetable oils, enriched with turmeric, sandal and almond oil, skin conditioners , moisturizers and anti bacterial agents .WAVE will be available in 75 gms & 100 gms in attractive packs and is priced at Rs. 14/-,(75 gms) and Rs.16/- (100 gms) with 72% TFM respectively. This premium soap is positioned in the popular segment to expand KSDL's consumer base and is targeted at the masses to increase company's market share. Wave in 75 gms is also available with Rs.6/- off on 2 pcs. at Rs.22/- instead of Rs.28/-. Similarly, 100 gms is available with 'buy three one free'. The above stocks are available to the customers for short period till stocks last along with regular packing. The company's vision is to march ahead by broad–basing the product portfolio while banking on the core strengths of producing, marketing heritage and natural products and also increase the customer base by introducing products in different segments.
Karnataka Soaps & Detergents Ltd, at its Bangalore Plant has one of the largest production facilities in the country with an installed capacity of 26,000 tones per annum. The company is also doubling its advertising spend to Rs 10 crore this year to market the Wave range. Recently Karnataka Soaps & Detergents Ltd. has entered in to a strategic tie-up with M/s.Bharat Petroleum Corporation Ltd. and Indian Oil Corporation Ltd. so that its products are made available in all BPCL LPG Dealers outlets and their In & Out outlets as well as in LPG Dealers outlets of IOCL and retail outlets of IOCL. By this tie-up, now the company has access to 25 million homes for their requirement of Toilet Soaps, Detergents, Agarbathies and Cosmetics. "This is a milestone agreement entered with BPCL & IOCL to reach our products directly to end consumers", said Mr. Kumar.
The company is encouraging growing sandalwood under "Grow More Sandal" scheme. B.H. Anil Kumar, Managing Director, KSDL, said," farmers have been offered sandalwood saplings at a discounted price".
The company now has a unique distinction, with the Government of India awarding GEOGRAPHICAL INDICATION REGISTRY for its Mysore Sandal Soap and Mysore Sandal Wood Oil which indicates these products are intellectual properties from India.
KS&DL has registered a net profit of Rs.8.82 Crores for a turnover of Rs.162 Crores for the financial year 2007-08 when compared to previous year's net profit of Rs.3.57 Crores on turnover of Rs.132 Crores. The company has set a target of Rs.180 Crores for the current year 2008-09.
Overseas markets
It has entered new markets overseas such as the US, UK, Europe, Brazil and Africa with sales, predominantly from Mysore Sandal soap, touching Rs 5 crore in 2007-08 — a growth of about 20 per cent over the previous year. "We could have reached Rs 7-8 crore had it not been for the weak dollar , but now with the rise in the dollar rate we are expecting a higher growth rate," said Mr Kumar. It has appointed dealers in these markets and plans to increase its distribution network to cover about 20 large retailers by end of this year. "Our products should eventually be available in chains like Wal Mart, Tesco and Carrefour," he said. Traditionally Middle East has been the company's main overseas market with merchants directly buying the Mysore Sandal soap from India and selling it there.
About Karnataka Soaps & Detergents Ltd.
Karnataka Soaps & Detergents Ltd is a true inheritor of the golden sandalwood legacy founded by the then Maharaja of Mysore Nalwadi Krishnaraja Wodeyar under the guidance of Bharat Ratna Sir M Visveswaraiah. The Company is carrying forward the rich tradition of manufacturing the finest quality of sandalwood soaps and spreading its fragrance across the globe. A significant milestone in the Company's history is ISO 9001 certification for Quality and ISO 14001 for eco-friendly products.
