Date:03/01/2009 URL: http://www.thehindu.com/2009/01/03/stories/2009010351390300.htm

Kerala - Kozhikode

New KSL unit to be ready by November

Staff Reporter

Foundations for soap factory to be laid today

KSL replaces the closed down KSOL
It will retain brand names of KSOL products

KOZHIKODE: The foundation stone laying ceremony of a factory under the new public sector enterprise Kerala Soaps Limited (KSL) will be held at Vellayil here on Saturday.

The new enterprise, which replaces the closed down Kerala Soaps and Oils Limited (KSOL), will be a 100 per cent subsidiary of the Kerala State Industrial Enterprises (KSIE). KSOL had introduced popular brands like Vep, Thrill, Kairali and Kerala Sandal. The new firm will retain these brand names, but will adopt new marketing techniques.

Soap noodles

The construction activities are expected to be completed within ten months. During the first phase, it will produce soap noodles, a raw material for making soap. The company expects that the products will hit the market by November this year.

The idea is to compete in the market by increasing production capacity, utilising modern technologies, sourcing raw materials at low cost and cutting down production cost. The government-owned supply network including Civil Supplies and Kudumbasree units would be exploited to market the products.

Government departments including health, jail, tourism, and other PSUs will be converted into regular customers of these products.

The new company will be based in a two-acre site of the KSOL at Vellayil here. The company is targeting a production of 12,000 tonnes of soap noodle, half of which will be sold to small and medium scale enterprises. The other half will be converted into brands of soaps. The soaps will be in premium (highly priced), popular (used by middle class) and economic (priced very low) categories.

The new company is estimated to cost Rs.9.7 crore. It will provide direct jobs to 100 persons and indirect jobs to nearly 300 persons.