It has now emerged that the counterfeit Mysore Sandal Soap production facility in Hyderabad, that was raided recently, had been in operation for a decade without coming to notice of the Karnataka Soaps and Detergents Ltd. (KSDL). Investigation has now estimated that the unit had a turnover in the range of ₹500- ₹600 crore since it started, which is the quantum of loss to KSDL.
Along with the Telangana police, officials from KSDL carried out a recent raid on the counterfeit manufacturing facility producing fake Mysore Sandal Soap. During the operation, Hyderabad residents Rakesh Jain and Mahaveer Jain were apprehended and charged for the production of counterfeit Mysore Sandal Soap and other KSDL products.
On January 12, following the direction from M.B. Patil, Minister for Large and Medium Industries and Infrastructure Development and also KSDL chairman, B. Prem Kumar, branch manager of Hyderabad KSDL, approached the police based on the tip-off the Minister had received.
Prior investigation
According to officials, prior to contacting the police, the KSDL conducted an investigation into duplicate products and the manufacturing unit. They purchased counterfeit products amounting to ₹5 lakh and subjected them to testing. Despite being unable to determine the location of the fake product manufacturing unit, KSDL staff strategically placed an order for soaps valued at ₹25 lakh. Under the guise of picking up the consignment, they successfully reached the facility where the counterfeit soaps were being produced.
During the operation, the police seized 20 cartons containing three-soap packs, each weighing 150 gm (totalling 1,800 pieces), as well as 47 cartons for each soap weighing 75 grams (amounting to 9,400 pieces). Additionally, empty packing boxes for 150-gram Mysore Sandal Soap (400 pieces) and empty packing boxes for 75-gram Mysore Sandal Soap (400 pieces) were also seized.
Upon examination in the KSDL laboratory, officials determined that the counterfeit soaps lacked good quality sandal oil and contained heavy metals. The individuals operating the counterfeit Mysore Sandal soap manufacturing unit were also involved in the production of other well-known branded products, including ghee and coconut oil, according to officials.
21 new products released
Meanwhile, Chief Minister Siddaramaiah on Saturday released 21 new soaps and detergents products manufactured by KSDL. He told the KSDL management to manufacture soaps according to the tastes of consumers and market them. Business of the company could be increased only by producing products according to the needs and tastes of consumers in the market, he said.
KSDL has made a profit of ₹182 core till now in this fiscal year against ₹132 crore in 2022-23, an increase of ₹50 crore, the Chief Minister said.
