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    The Edible Oil Industry in India: A Marketing Research Overview

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    Adhiraj Singh
    The edible oil industry in India is the fourth largest producer of major oilseeds. However, it is also one of the biggest importers of palm and soy oils, which constitute over 95% of total edible oil imports. The industry is highly fragmented and there is a gap between domestic production and consumption. Some of the key players in the industry are National Dairy Development Board, Agro-Tech, Marico Industries, Adani-Wilmar Group, and Cargill Foods. The domestic edible oil market is primarily price sensitive and commodity-driven. Consumption is expected to grow significantly in coming years due to population growth, rising incomes, and health consciousness.

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    The Edible Oil Industry in India: A Marketing Research Overview

    Uploaded by

    Adhiraj Singh
    255 views30 pages
    The edible oil industry in India is the fourth largest producer of major oilseeds. However, it is also one of the biggest importers of palm and soy oils, which constitute over 95% of total edible oil imports. The industry is highly fragmented and there is a gap between domestic production and consumption. Some of the key players in the industry are National Dairy Development Board, Agro-Tech, Marico Industries, Adani-Wilmar Group, and Cargill Foods. The domestic edible oil market is primarily price sensitive and commodity-driven. Consumption is expected to grow significantly in coming years due to population growth, rising incomes, and health consciousness.

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    The edible oil industry in India is the fourth largest producer of major oilseeds. However, it is also one of the biggest importers of palm and soy oils, which constitute over 95% of total edible oil imports. The industry is highly fragmented and there is a gap between domestic production and consumption. Some of the key players in the industry are National Dairy Development Board, Agro-Tech, Marico Industries, Adani-Wilmar Group, and Cargill Foods. The domestic edible oil market is primarily price sensitive and commodity-driven. Consumption is expected to grow significantly in coming years due to population growth, rising incomes, and health consciousness.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    255 views30 pages

    The Edible Oil Industry in India: A Marketing Research Overview

    Uploaded by

    Adhiraj Singh
    The edible oil industry in India is the fourth largest producer of major oilseeds. However, it is also one of the biggest importers of palm and soy oils, which constitute over 95% of total edible oil imports. The industry is highly fragmented and there is a gap between domestic production and consumption. Some of the key players in the industry are National Dairy Development Board, Agro-Tech, Marico Industries, Adani-Wilmar Group, and Cargill Foods. The domestic edible oil market is primarily price sensitive and commodity-driven. Consumption is expected to grow significantly in coming years due to population growth, rising incomes, and health consciousness.

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    Attribution Non-Commercial (BY-NC)
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    of 30

    The Edible Oil Industry In India

    Click to edit Master subtitle style

    A Marketing Research Overview


    6/6/12

    6 600
    Rupees
    6/6/12

    Key
    Billion

    Players

    Key Highlights

    India is the fourth largest producer of major oilseeds One of the biggest importer of oil Palm and soy oils constitute more than 95% of total edible oil imports Sunflowers and soy oils leading the market Highly fragmented industry Gap between domestic production

    6/6/12

    Key Players

    National Dairy Development Board Agro-Tech Marico Industries Adani-Wilmar Group Cargill Foods Ruchi Soya
    6/6/12

    Indias share in the global oilseed production

    10 %

    6/6/12

    Major oil seeds cultivated in India


    Soybean

    Cottonseed Groundnut Sunflower Rapeseed Sesame seed Copra


    6/6/12

    Characteristics

    Primarily commodity market- price sensitive Complex network of C&F agents, wholesalers/ stockiest & retailers Oil sold in bulk (tin, HDPE containers) to institutions; in retail packs (PET bottles,cans, jars, pouches) to small customers. Seasonal demand for oils & 6/6/12 vanaspathi- September to November

    Recent Trends

    Reduction of import duty Customs duty on refined and crude oil (some) has been set to zero State Governments have been authorized to re-impose stock restrictions with respect to edible oils/oilseeds with effect from 7th April, 2008 Subsidizing for the weaker section of society Trend shift towards branded/packaged oil6/6/12 annually growing @20%

    Recent Trends

    Domestic turnover $10 billion per annum Earns foreign exchange of $90 million per annum

    6/6/12

    Recent Trends
    Domestic Consumption Trend

    2011

    6/6/12

    Growth rates

    Current 4 % By 2015 estimated to be 15 CAGR 4.43% (2001-2011)

    6/6/12

    Consumption

    Countrys top 10%-20kgs per capita Bottom 30%- less than 5kgs per capita Strong regional preferences High dependence on imports

    6/6/12

    Per capita consumption in India 10.6 kgs/ annum


    Whereas USA is 48 kgs/ annum

    Per capita consumption of edible oil (2010-2011)

    6/6/12

    Key Success Factors

    Raw material sourcing: focus on improving yields, better quality oilseeds, regular supplies Branding essential for success (Vanaspathi Dalda/Oils Sundrop) Better distribution network Efficiency in operation - to become price competent and withstand 6/6/12 overseas competition

    Positioning

    6/6/12

    Marketing Strategies

    Rope in tier II and III cities-increased GDP Build brand equity Work on price penetration Creating awareness High nutritional value Emotional connect

    6/6/12

    Strategic groups

    Adani Wilmar Group


    6/6/12

    Marico Industries, Agrotech foods

    video

    6/6/12

    Buying behavior of customer

    6/6/12

    Segmentation

    6/6/12

    Positioning : Dhara
    Dhara dhara sudh dhadra

    A brand that contributes to overall growth of children and strengthens to perform better Healthy oil

    Target

    Mothers and young adults +25


    6/6/12

    Fortune hai light, thoda aur chalega


    Positioning AdnaniWilmar-Fortune

    Health along with great taste Offered variety of edible oils Builds on moms cooking aspect Target Different brands for different consumer types- Fortune and Raag 6/6/12

    Positioning Marico Saffola


    Sehat se jeena hai

    Initial focus on overall family health Focused on heart Feb 2004 launched new campaigns Target Young adults - WORLD HEART DAY Direct to office initiative- busy 6/6/12 professionals

    Positioning-Agrotech foods- Sundrop


    Healthy oil for healthy people

    Promise of health without the loss of taste Sundrop name chosen to cue category and purity young, modern, premium feel Growth Within 6 months, it became the largest selling refined sunflower oil

    6/6/12

    6/6/12

    6/6/12

    Business concerns

    Free imports, low import duties and slump in global prices- lead to `dumping low realizationand idlecapacities in oil and vanaspathi industries Production slippages have also forced imports Excessive (cheap) imports of oilseeds - led tounremunerated prices, 6/6/12 locally hence,farmers have shifted

    Key market influencers


    Monsoons Pest, diseases and environmental issues Prices and demand-supply pattern (India and abroad) Speculation and hoarding Consumption of byproducts Production fluctuations
    6/6/12

    Future Demand Drivers

    Macroeconomic factors: Population growth, per capita income, purchasing power, oilseeds crop Other factors: Prices - domestic/ international, Availability - oil, oilseeds Influence of branded products `health message Growing preference for convenience 6/6/12 foods

    6/6/12

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