KS&DL managing director P Ganeshan told The Financial Express that the company had approached the Union Ministry of Commerce for financial support for its much-acclaimed soap brand which needs increased publicity for the export market. ``The government has agreed to give us a support of Rs 5 crore as part of its brand-support programme,'' said Ganeshan.

It may be noted that KS&DL, a Government of Karnataka undertaking is a marketleader of sandal soaps in India. Given the fact that the IBEF's rates of interest are pegged at high levels which are coupled with not-so-lenient repayment conditions, Ganeshan said: ``We areaware of the fact, but if revenues are realised with increased promotional support, it would mean better margins for the company. Our soap brand is estimated to do better with increased brand promotions and continuous advertising for exportmarkets. This in turn, would require funds,'' he said.

It may be recalled here that the Project India Blend (PIB) -- a consortium of five top tea companies-in its efforts to address the needs of an Indian brand of tea in Russia, was the first to have approached the IBEF for support.

Unfortunately, PIB found that the terms for repayment were slightly tough and not so economic. It is believed that negotiations are on between the Union Ministry and industry officials on this issue.

According to Ganeshan, KS&DL is also in the process of diversifying its product range which includes incense sticks and baby products.

``KS&DL hopes to keep up the tempo of growth and success by continuing its strategic diversification and expansion plans in the current year. This would beby broad-basing our product portfolio while banking on core strengths,'' he added.

``We plan to increase our export market for our recently-launched Mysore Sandal Gold, the super premium soap. The 100 per cent natural sandal oil took two years of research. Moreover, we have tried to develop the product for the international market and hope that it will be taken well,'' Ganeshan said.

Apart from broad-basing its portfolio, the company has been trying to create an image of youthfulness for its brands. Targetted for the younger age group the new sandal soap is slated to clinch a major market, feltGaneshan.

The company's total sales in the year 1998-99 was Rs 123 crore with a net profit of Rs 20.2 crore. It also received a ISO-9002 certification in 1998-99. The company has set a sales target of Rs 200 crore for the year 1999-2000.