‘Sandal-Plus’ yields big surplus, as KSDL records over ₹2,000 crore turnover, ₹507 crore profit

Bengaluru: Karnataka Soaps and Detergents Limited (KSDL), a premier state-owned enterprise, has, for the first time, recorded a turnover of ₹2,016 crore in the financial year 2025–26, along with a profit of ₹507 crore.

Making the announcement on Tuesday, Large and Medium Industries Minister M. B. Patil described this as a historic milestone among public sector enterprises.

He was presiding over a felicitation ceremony titled “Mysuru Sandal’s Pinnacle of Achievement”, organised at a private hotel in the city to celebrate this accomplishment.

The event included honouring staff and officials, release of a commemorative volume, and a felicitation programme.

Speaking on the occasion, he said that while it took the organisation 105 years to reach a turnover of ₹1,000 crore, it doubled this figure to ₹2,000 crore in just four years.

From a turnover of ₹1,375 crore in 2022–23, the company has grown to ₹2,016 crore over the past three years since the present government assumed office — an increase of ₹641 crore in a short span, he noted.

Earlier, the organisation had 34 products. Over the past three years, 57 new products have been introduced in line with market trends, taking the total to 94.

Notably, this has been achieved without any new recruitment or machinery purchases. Despite having a production capacity of 26,000 metric tonnes, efficient operations enabled production of 47,494 metric tonnes in 2025–26.

Out of the ₹507 crore profit, ₹157 crore will be paid as dividend to the government, and ₹5 crore will be contributed to the Chief Minister’s Relief Fund. This marks an increase of ₹22 crore in dividend compared to the ₹135 crore paid last year, he explained.

In 2025–26, the company recorded ₹420 crore through modern trade channels and ₹120 crore through e-commerce. The organisation has set a target of achieving a turnover of ₹3,000 crore by 2028 and ₹5,000 crore by 2030. To support this growth, a new manufacturing unit will be established on 50 acres in Vijayapura, for which ₹229 crore has been sanctioned, Patil added.

Encouragement for farmers

Sandalwood oil, the key raw material for the iconic Mysuru Sandal Soap, remains central to the company’s operations. To ensure a steady supply, KSDL has launched the ‘Grow More Sandalwood’ initiative in partnership with farmers.

Under this programme, sandalwood plantations will be developed over 10,000 acres in 10 years. Farmers will receive an incentive of ₹500 per sapling over a period of three years.

Additionally, sandalwood research chairs will be established at GKVK, Bengaluru, and the Agricultural University, Vijayapura, Patil said.

He further noted that tenders worth ₹15 crore have been floated for the purchase of new machinery. Steps have also been taken to expand exports and strengthen the company’s presence across India. Over the past three years, the organisation has procured 174 tonnes of sandalwood directly from farmers, making payments amounting to ₹6.08 crore, he added.

The organisation also owns vacant land parcels in Bengaluru, Dabaspet, Mysuru, and Shivamogga.

A blueprint has been prepared for their optimal utilisation, which, if implemented, could create a sustainable source of revenue for the company, the Minister said.

He also suggested that the Chairman and officials consider providing incentives to workers in recognition of their contribution to this achievement.

KSDL Chairman C.S. Appaji Nadagouda said a team has already visited Australia and other countries to explore opportunities to expand its market.

He added that a focus on modern marketing strategies had contributed significantly to the company’s success.

Plans would be prepared to enter markets in the UAE, with an aim to expand the company’s presence in cosmetic and perfume segments in addition to soaps, he noted.

KSDL Managing Director Dr P.K.M. Prashanth said that ₹4.83 crore had been disbursed towards wage contracts for workers, while an additional ₹20 crore had been spent on campus conservation.

The event was attended by Principal Secretary (Industries) Selvakumar and employees of the organisation.