Kgalagadi Soap Industries (KSI), a subsidiary of Sefalana, has concluded a management deal with a South African investor, BG Business has established. Sefalana group managing director, Chandra Chauhan explained that the deal would turn around the loss-making soap producer in a period of six months.
Chauhan could not be drawn into disclosing details of the contract, saying the deal was still at an infancy stage and could not be compromised. He further explained that SA businessman would help KSI with a management and marketing strategy to boost company efficiency. “KSI would also be introducing new products very soon.
We will start producing a range of products from foam bath liquids, laundry soap, toilet soap, detergents, hospital soaps and various hygienic products, with our own brand,” revealed the Group MD.
Further, Chauhan said KSI would start producing competitive brands of soap like Lux bathing soap and many others. Last year Chauhan announced in Sefalana annual report that KSI, which was popular for its Kgalagadi soap brand, was performing below standard.
The report indicated that the company needed a strategic partner to help it make a positive turnaround. It also emerged that the company was out of touch with markets. Despite the products that needed to be brought to live, the company’s machinery was also outdated and needed replacement.
However, Chauhan said they have bought new machinery, which is ready to be installed at the plant. “We spent around P4 million on this new equipment. It is of improved quality and efficiency. The machines would take only one hour for production, while the older ones took almost a week, this means that we will now produce more products in a short period of time, and maximise our turnover as well,” he said. Chauhan wants to secure an upper market share for KSI products, which would also be sold in Sefalana retailers and wholesalers.