Interview/ Appaji C.S. Nadagouda chairman, KSDL
APPAJI C.S. NADAGOUDA is the chairman of Karnataka Soaps and Detergents Limited (KSDL), the company that manufactures the Mysore Sandal Soap. A Congress MLA from Muddebihal constituency, Nadagouda, since taking over as chairman, has pushed for a range of new initiatives and innovations in the government-owned firm.
Edited excerpts from an interview:
Q/ Tell us about the rich legacy that Mysore Sandal Soap carries.
A/ Mysore Sandal has a legacy that is more than a century old. It is our responsibility to carry forward the vision of our predecessors and imbibe the culture they established. This legacy was shaped by Maharaja Krishnaraja Wadiyar, Sir M. Visvesvaraya and others who were instrumental in bringing Mysore Sandal to life. Their intention was to spread the fragrance of Mysore sandalwood across the world in the form of a soap.
The factory was initially set up in Mysuru and later shifted to Bengaluru in the 1950s. Around the same time, it came under the ownership of the government of Karnataka. The uncompromising quality of the soap and its traditional method of marketing set it apart, and consumers came to trust its authenticity.
Much like ayurveda, sandalwood oil has long been regarded as medicinal. The Maharaja of Mysore believed that its fragrance and benefits should reach even the poorest. That philosophy continues to guide us. We have never compromised on this principle. While we could have opted for synthetic ingredients to enhance fragrance, we have consciously avoided them and continue to use only natural ingredients.
Q/ What changes have you introduced after taking over as chairman?
A/ When the managing director, Prashanth P.K.M., and I took charge, our focus was on becoming more competitive and future-ready. While soaps remain our core product, we are now diversifying into categories such as hand wash, liquid soaps, detergents and dishwashing liquids.
At present, these products are available mainly in Karnataka, but we plan to scale up production and expand to other parts of the country. Mysore Sandal users are extremely loyal; those who use our soap rarely switch brands because they trust it as a natural product. We do not use animal-based ingredients, harsh chemicals or synthetic substances in any of our products.
Q/ How do you plan to further popularise Mysore Sandal?
A/ We have been aggressively expanding our presence through e-commerce, which has particularly helped us reach younger consumers. The response has been very encouraging. In FY 2024–25, revenue from the e-commerce segment stood at Rs 360 crore.
We are also strengthening our digital marketing strategy and offering a wider range of products online. This segment will remain a key growth driver for us.
Q/ What about international markets?
A/ We are actively targeting international markets as well and are keen to establish a strong presence overseas. Currently, we are focusing on markets such as the US and the UAE.
Q/ Are there challenges in procuring sandalwood for your products?
A/ Yes, there has been a decline in the availability of sandalwood trees in recent years. In 2025, we managed to procure around 1,500kg from various sources, including farmers and tenders in states like Maharashtra.
Large-scale sandalwood farming is rare today; most farmers grow it on relatively small plots, often not exceeding 10 acres. Climate change has also affected sandalwood growth in regions such as Mysuru, Shivamogga and the Western Ghats. Sandalwood is a hardy species, and its growth depends heavily on soil and climatic conditions. In the Western Ghats, it may mature in about 15 years, while in regions like Vijayapura, Kalaburagi or parts of Telangana, it can take up to 20 years.
Q/ How do you maintain consistency and quality across products?
A/ We are extremely particular about raw materials and follow stringent quality checks through institutions such as the Institute of Wood Science and Technology and independent third-party laboratories. Quality is non-negotiable for us.
Until last year, we sourced patchouli oil—a key fragrance ingredient—from Indonesia and Malaysia. Due to heavy rains, production there was affected and prices shot up. However, we managed to secure supplies from existing stocks through our contacts. Each soap contains a blend of 13 to 14 different oils. The formulation is highly complex and closely guarded. In fact, even the MD and I are not privy to the exact formula.
Q/ How have you expanded your distribution network pan-India?
A/ Among FMCG companies in India, our growth (at 14 to 15 per cent annually) has been one of the highest. Earlier, we had around 400–500 distributors across India; today, that number has crossed 1,200 and we aim to double it.
Our products are now available even in far-flung regions such as Nagaland. To improve efficiency, we have created regional distribution hubs across states like Uttar Pradesh, Madhya Pradesh, Gujarat and Karnataka. This approach ensures quicker supply and better market reach. The last three years have been exceptionally strong, and I am confident 2026 will be even better.