Representative image of Mysore Sandal Soap.
Credit: DH Photo
Bengaluru: Karnataka Soaps and Detergents Ltd (KSDL) has proposed to commercially develop a portion of its land inside the Mysore Sandal Soap Factory premises on West of Chord Road under a public-private partnership (PPP) model.
However, the proposal comes at a time when the state-run enterprise has delivered its strongest financial performance in its 109-year history.
The enterprise, best known for its Mysore Sandal Soap, has identified 10.32 acres of land within its campus and adjacent to the Mysore Sandal Soap Factory Metro Station for development.
According to the proposal, the KSDL's participation will be in the form of land contribution, while the private partner will design, build, finance, operate and transfer (DBFOT) the project. The plan envisages office or commercial development to "unlock value" from the vacant land and generate additional revenue.
The move comes despite KSDL being in robust financial health.
For 2024–25, the company reported a record turnover of Rs 1,785.99 crore, surpassing its target of Rs 1,589 crore. Net profit stood at Rs 415 crore, a 14% rise from the previous year and the company declared a dividend of Rs 135 crore to the state government, the highest in its history.
Given this strong performance, the need for monetising prime factory land has come under scrutiny. Local residents fear that any large-scale commercial development could worsen congestion in the area.
Officials said the proposal was at a preliminary stage and final decision had not been taken.