The State-owned Karnataka Soaps and Detergent Limited’s (KSDL) decision to diversify its product base seems to be paying rich dividends and the company, which was in the red three years ago, has now turned the corner.

The KSDL on Monday launched, in this regard,  five new products - New Wave Turmeric Soap, Wave Herbal Liquid Handwash, Designers pack of Mysore sandal Oil, New Mysore Rose Soap and Nutri-ko Hair Care and Cooking Oil.

It also re-launched Mysore Sandal 3 in 1 Agarbathies. Governor Rameshwar Thakur launched the products.

“Faced with paucity in supply of sandalwood, an eight-decade old company was incurring huge losses.

Skyrocketing price of sandalwood had narrowed down the company’s profit margin. In 2005, it has accumulated Rs 98 crore loss. Hence, it was planned to diversify the product base. This year it has earned Rs six crore profit,” official sources said.

KSDL is now coming out with wide range of products including baby soap, baby powder, herbal care Soap, sandal talcum powder. KSDL Managing Director B H Anil Kumar said, “The company is facing severe scarcity of sandalwood...To reduce dependence on sandalwood oil related products, the company has diversification plans.”

The company is encouraging growing sandalwood under “Grow More Sandal” scheme. KSDL has chalked out new marketing strategies to market its products. It has entered into a tie up with Hindustan Petroleum Corporation Limited and Indian Oil Corporation Ltd to market its products in their outlets, he added.

The company has recently obtained Geographical Indication Registry for Mysore Sandal Soap and Mysore Sandalwood Oil, making them intellectual property rights of the country.

DHONI vs COMPANY

Cricketer Mahendra Singh Dhoni has demanded payment of balance Rs 21 lakh with interest from the KSDL as per the advertisement contract. “In a recent reply to contract cancellation notice issued by the company, he has demanded the balance amount along with the interest. He has stated that due to BCCI’s restriction he could not make himself available as per the contract,” KSDL MD Anil Kumar said, adding that the company will mutually decide on an arbitrator soon to solve the issue with Dhoni. The company had entered into a two-year agreement with Dhoni from 2006-08, under which he was supposed to give 10 days to KSDL for shooting its ads. “However, he gave us only three days in 2006 and failed to turn up for the remaining seven days despite repeated requests,” he said.