Analysis of Various Brand of Soyabean Oil

7/30/2019 Analysis of Various Brand of Soyabean Oil

1/58

PROJECT REPORT

On

ANALYSIS OF VARIOUS BRANDS OF

SOYABEAN REFINED OIL IN THE MARKET

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION

Submitted by:

1


2/58

ACKNOWLEDGMENT

Mere acknowledgement may not redeem the debt I owe to those who support during the

entire course of the project.

I am immensely grateful to ______________________, my project guide, who offered

me with his valuable suggestions and guidance and helped me focus on crucial aspects

that helped me add significant quality in my efforts in compilation of project.

Besides, I take this opportunity to express my gratitude to my parents, family members

and friends who encouraged me in the completion of this project work. Above all, I am

thankful to power beyond us who guided and helped me to complete the work.

2


3/58

PREFACE

In this age of globalization hyper competition has become a regular feature. Today the

markets are no less then battlegrounds and one has to strive very hard for survival and

growth.

Due to very rapid industrialization all over the world the demand for the managerial

personnel and the administrative personnel has increased. The perfect study of

management involves both theoretical as well as practical aspects. To survive in this

highly competitive market Practical Knowledge is as relevant as the Theoretical.

The significance of MBA Degree is that the Theoretical aspects, which a student learns

throughout the year in the class sessions, can be practically applied through different

projects, which one undertakes. Keeping in tune with this doctrine, I have tried to apply

theoretical aspects throughout the project, which I learned under the course of

management.

In this project more emphasize given to study analyzing different brand of soya bean oil

available in the market, major players and their market share and customer preference.

I have tried my best to present this information as clearly as possible using basic terms

that I hope will comprehended by the widest spectrum of researchers, analysts and

students for further studies.

3


4/58

TABLE OFCONTENTS

S.No Contents Page No(s)

Executive Summary

1 Industry profile

Edible oil market in IndiaTypes of oil commonly used in India

Consumption pattern of Edible oil in India

Recent Development

Future of Edible oil Industry

Soya Oil

Major players of Soyabean oil

Retailers say about different brand

Customers say about different brand

2 Objectives and Research Methodology

Research Methodology

Sampling Design

Sources of data collection

Limitations

3 Data Analysis and interpretations

4 Findings

5 Suggestions

6 Bibliography

7 Annexure

EXECUTIVE SUMMARY

Edible oil industry in India is a predominantly retail demand driven industry. The

industry has been flourishing lately given the constant expansion in retail segment

coupled with increased earnings.

4


5/58

The objective of this research is to determine the customer as well as retailers

preferences regard ing diff erent soya bean brands which result in thei r market share. It

involves the study the consumers buying behavior and attitudes towards a variety of

attributes and factors, which help them in decision-making.

Firstly, I took five brands of soya bean refined oils; for a comparative study. I

got the companies broad background; their entry into the segment, their

positioning strategies of brands and other factors affect ing the consumers

buying behavior.

Later I went through the process of filling the questionnaires from 50 retailers

& 100 customers selling and consuming soya oil. Both retailers and customerswere taken into account to make this research more effective. Secondary data

from various sources like magazines, a journal etc has also been taken.

The findings showed that the retailers who sell various brands want more

margin and various packages as well and customers want some discount

schemes and soya bean oil at reasonable price between 40 -50. Moreover they

want after sale services.

But, at the end the research was limited due to small sample size, small sample

area and time constraints.

CHAPTER -1

INDUSTRY PROFILE

EDIBLE OIL MARKET IN INDIA

5


6/58

Edible oils constitute an important component of food expenditure in Indian households.

The demand for edible oils in India has shown a compounded growth of 4.5% over the

last 10 years and is estimated at 16.2 million tonnes for Oil Year (OY) 2010-11. India

plays an important role in the global edible oil market, accounting for approx. 10.2%

share of consumption; 7% share of oilseed production; 5% share of edible oil production

and 13.6% share of world edible oil imports for year 2011-12. As per USDA estimates,

India is the third largest consumer of edible oils (after China and the EU-27 countries);

and accounts for 11% of global edible oil demand and 16% of global imports in OY

2010/11F.

Indias annual per capita consumption has shown a steadily increasing trend from 4 kg in

the 1970s to 10.2 kg in the late 1990s to 2012 of ~13.5 - 14 kg. However, it still ranks

well below the world average of around 24 kg (per capita figures including consumption

of bio-energy), thereby signifying the high growth potential of the industry.

The medium-to-long term demand outlook for edible oils in India is favourable(with

expected growth in the vicinity of 4-5% p.a.), catalysed by the growing population and

expected increase in per capita consumption which in turn would be driven by changing

lifestyles; growing urbanization; increasing proportion of middle class population and

steadily rising affluence levels.

India has15,000 oil mills, 689 solvent extraction units, 251 Vanaspati plants and over

1,000 refineries employing more than one million people. The total market size is at Rs.

600,000 Mln. and import export trade is worth Rs.130, 000 Mln.

,

India is estimated to account for around 5% of the worlds production of edible oils.

Though it has the largest cultivated area under oilseeds in the world), crop yields

tantamount to only 50-60% of the worlds average.

6


7/58

In terms of volumes, palm oil, soyabean oil and mustard oil are the three largest

consumed edible oils in India, with respective shares of 46%, 16% and 14% in total oil

consumption in 2012.

With steady growth in population and personal income, Indian per capita consumption of

edible oil has been growing steadily. However, oilseeds output and in turn, vegetable oil

production have been trailing consumption growth, necessitating imports to meet supply

shortfall.

Climatic conditions in India favor growing a variety of oilseeds. On the demand side, a

growing population and vastly varied dietary habits have ensured a thriving market for

edible oil in the country. In fact, there is a substantial demand overhang, which is

expected to continue for some years. At present, this is offset by imports that cater to

almost half of the total domestic consumption. With cheap imports threatening to cripple

the domestic industry, the government is walking a tightrope between filling the demand

supply gap and the political need to keep the domestic industry in good health.

The Indian edible oil industry is highly fragmented, with the presence of a large number

of participants in the organised and unorganised sectors. This has resulted in severe

competition and inherently thin profitability margins. Further, the profitability of market

participants has also been vulnerable to risks emanating from weak harvests; commodity

price volatility and forex movements.Unorganized, medium and small players dominate

the industry. Hence, quality remains a concern. There is need for better regulatory control

to protect consumers.

Oilseeds in India account for around 5.0 percent of the Gross National Product (GNP)

and 14.0 percent of the country's area under cultivation of crops. Castor, Groundnut,

Linseed, Niger, Rapeseed, Mustard, Safflower, Sesame and Sunflower are some of the

major oilseeds grown. India produces 7 percent of the world's oilseeds, but has a low

productivity of around 850-900 kg per hectare (compared to a world average of around

1,100-1,350 kg per hectare).

7


8/58

The amount of oil extracted from the seed varies with the type and quality of seed. In

many cases, the oil recovery rate is upwards of 30.0 percent with Sesame accounting for

a high 45.0 percent.

Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year. The

consumption in 2011-12 was around 25.75 million tons. Non-packaged oils account for

nearly 50.0 percent of consumption in both urban and rural markets. In the remaining

50.0 percent contributed by packaged oils, branded oils constitute a small portion of

approximately 10 -15 percent.

Originally, there was no discrimination between refined and non refined edible oil as far

as import duty concerned. The duty on both was 65 percent.

Types of Oils commonly used in India.

India is fortunate in having a wide range of oilseeds crops grown in its different agro

climate zones. Groundnuts, mustard/rapeseed, sesame, safflower, linseed, Niger seed/

castor are the major traditionally oilseeds. Soya been and sunflower have also assumed

importance in recent years. Coconut is most important amongst the plantation crops.

Efforts are being made to grow oil palm in Andhra Pradesh, Karnataka, Tamil Nadu in

addition to Kerala and Andaman and Nicobar Islands. Among the non-conventional oils,

rice bran oil and cottonseed oil are the most important. In additional, oilseeds of tree and

forest origin, which grow mostly in tribal inhabited areas, are also a significant source ofoils.

Consumption Pattern Of Edible Oil In India.

8


9/58

India is vast country and inhabitants of several of its regions have developed specific

preference for certain oils largely depending upon the oils available in the region. For

example, people in the South and West prefer groundnut oil while those in the East and

North use mustard/rapeseed oil. Likewise, several pockets in the South have a preference

for coconut and sesame oil. Inhabitants of northern plain are basically hard fat consumers

and therefore, prefer Vanaspati a term used to denote a partially hydrogenated edible oil

mixture. Vanaspati has an important role in our edible oil economy. Its production is

about 1.2 to 1.4 million tonnes annually. It has around 10% share of the edible of the

market. It has the ability to absorb a heterogeneous variety of oils, which do not generally

find direct marketing opportunities because of consumers preference for traditional oil

such as groundnut oil, mustard oil, sesame oil etc. For example newer oils like soyabean,

ricebran and cottonseed and oils from oilseeds of tree and forest origin have found their

ray to the edible pool largely through vanaspati route.

Of late, things have changed. Through technological means such as refining, bleaching

and de-odouraisation, all oils have been rendered practically colorless. Odorless and

tasteless, and therefore, have become easily interchangeable in the kitchen. Newer oils,

which were not known before they have entered the kitchen, like those of cottonseed,

sunflower, palm, oils or its liquid fraction (palmolein) soya bean and rice bran. About 60-

70% predominately groundnut and mustard seeds are used to make non-refined or filtered

oils. This tends to have a strong and distinctive test preferred by most traditional

customers. About 70% of these filtered oils produced are by the organized

and semi-organized sector plants producing f rom 2000-10000 MT per

month. It is often branded by large manufacturers. The lower quality and generally

lower c o s t f i l t e r e d o i l p r o d u c e d i s m a i n l y b y t h e s m a l l s c a l e

v i l l a g e b a s e d processor s. The o il i s most ly sold loose d i rect ly to the

consumers f rom a v a r i e ty o f c o n t a in e r s , o f t e n w i t h in 2 - 3 d a y s o f p r o d u c t i o n . Th e s e l o c a l c r u s h e r s w i l l p r o d u c e b e t w e e n

h a l f a n d t w o M T s p e r m o n t h . T h i s decentralized production and

marketing pattern may account for around 20%o f a l l e d i b l e o i l s i n t h e

c o u n t r y . The share of raw oils refined oils and vanaspati in the total edible oil

market is estimated at 42%, 48%and 10% respectively.

9


10/58

S o y b e a n i s t h e t h i r d l a r g e s t o i l s e e d c r o p i n India n e x t t o G r o u n d n u t

& Mustard and accounts for 25% of the total oilseeds produced in the country in a year.

Soya oil contributes about 10% of total vegetable oils produced in the country .

Groundnut is the most widely consumed and traded edible oil

d e t e r m i n i n g e d i b l e o i l e c o n o m i c s . I n d i a i s t h e w o r l d s

s e c o n d l a r g e s t producer of groundnut, next only to China. But groundnut being

primarily a K h a r i f ( m o n s o o n ) c r o p i s v u l n e r a b l e t o v a g a r i e s o f

m o n s o o n a n d a l s o speculative activities.

While mustard oil is almost entirely produced within the country, soyabean oil is

imported in significant quantities (about 45%-50%). Palm oil is entirely imported in

crude form for refining in port based refineries while some quantities are also imported in

the refined form.

Given the presence of a large number of unorganised participants in the Indian edible oil

market, the share of branded product sales has remained low with most low-income

consumers opting for cheaper oils sold in loose form. As per industry data, only about

31% of urban households and about 9% of rural households consume branded edible oils,

with the national average at 16%. Given the low penetration of branded oils; increasing

affluence levels and quality consciousness of the Indian consumers, there is a significant

growth potential in the branded segment. Amongst the major edible oils consumed, palm

oil is still largely traded as a commodity and sold mostly in loose form, with packaged

sales accounting only for 15%-20% of total sales. Sunflower and soya oil, on the other

hand, have a high proportion of packaged sales estimated at around 70% and 55% of total

sales. The major participants in the organised sector, namely, Ruchi Soya, Adani Wilmar

Limited (AWL) & Cargill India, have a strong presence in the branded segment, with

branded sales accounting for 38%, 58% and 60% of total edible oil sales of these

companies respectively. Moreover, a few mid-sized, regional edible oil companies such

as Mantora Oil Products Ltd, Modi Naturals and Tara Health Foods Ltd have also been

striving to establish their brands.

10


11/58

Recent Development

The edible oil industry in India in the recent past has witnessed both organic as well as

inorganic expansion by some of the major players.

AWL has added 1090 TPD of installed capacity for refining and 5050 TPD of installed

capacity for seed processing during 2011-12 by acquiring five operational plants and

undertaking expansion at three out of its four existing plants. AWL has also additionally

taken over the operations of other Wilmar associates in India (like Acalmar Oils & Foods

Limited) so as to consolidate its pan-India presence.

Sanwaria Agro Oils Limited has added 1000 TPD crushing capacity in 2009 through

acquisition of two plants.

KS Oils has set up new facilities at Kota, Ratlam and Guna, totaling 3400-3600 tpd, and

acquired a refining unit at Haldia. Further, some edible oil manufacturers have also

undertaken backward integration to strengthen their overall business model. KS Oils has

acquired 1,38,000 acres of palm plantations in Indonesia.

Ruchi Soya has access to 1,75,000 hectares of agricultural land with palm plantations

across different Indian states.

Future of Indian Edible oil Industry

1. Demand DriversMacroeconomic factors: Population growth, per capitaincome, purchasing power,

oilseeds crop

Other factors: Prices - domestic/ international,Availability - oil, oilseeds

Influence of branded products - `health message

Growing preference for convenience foods.

11


12/58

Raw material sourcing: focus on improving yields,getting better quality oilseeds ,

ensuring regular supplies - through symbiotic relationship with farmer

Branding essential for success (e.g. Vanaspati - Dada,Oils - Sun drop)

2. Key Success Factors

Better distribution network to improve reach

Efficiency in operation - to become price competentand withstand overseas competition

Proposed Future trading in edible oils will help curtail price volatility and lend

knowledge - based assistanceto farmers of eliminate unofficial markets

3. Future

In the next five years, the market for - edible oils will grow by 8 to 9%.

Free imports, low import duties and slump in global prices - lead to `dumping

Domestic industries of edible oils affected - lowrealization and idle capacities in oil

industries

4. Business Concerns

Production slippages have also forced imports

Excessive (cheap) imports of oilseeds - led tounremunerative prices, locally

Hence, farmers have shifted to other cash crops

Increasing health awareness - impact of oils usage on individuals cholesterol levels

SOYA OIL

The source: -

Soya was developed in China even before the time of written records. The name of theSoya bean comes from sou meaning big bean and is one of the five holy plants of the

Chinese people 5000 year ago. The Emperor himself planted Soya every year in a ritual

ceremony.

12


13/58

Nowadays, as a member of the legume family, it has an important position in ecological

agriculture. Legumes supply the soil with nitrogen and are therefore highly suitable for

use in the rotation of crops.

The plant itself is a short bushy plant 20-180 cms in height. It is grown in normally

cultivated fields in rows.

Recently, there has been a massive boom in the production of genetically engineered soya

bean, which can resist certain herbicides. Vast areas of north and South America have

been planted with these GM Soya plants. The soya used in the production of our oil is

exclusively from organic farmers in France who belong to a cooperative near Albi. The

cultivation association pay very conscientious attention to ensure that No GM soya seed

is used to the extent that they produce their own organic seed.

Processing:-

Soya is a basic component of the diet in Asian countries and forms the basis of tofu. Soya

oil first cold pressing has a full aroma, which deliciously emphasizes the natural flavor of

your salads and raw dishes. Industrially refined soya bean oil is product which one should

regard with particular skepticism; with regard to flavor and nutritional significance

industrially refined soya bean oil has simply nothing to offer. When our soya bean oils is

pressed, the whole oil mill is filled with a magnificent aroma of fresh beans. The

processor has to press some 10 killos of soya bean in order to extract one simple litre of

oils.

Cooking:-

It is not really advisable to beat cold pressed soya bean oil. Our soya bean oils have a

delicate bean like flavor. It is thus ideally suited to enhance salads of hearty noodle,

potatoes and beans. If you find the soya flavor to dominant, simply mix it with a little

safflower oils.

13


14/58

Health:-

Soya bean oil possesses more than lecithin than any other oil. It is thus a real power food

for the bran and nervous system. Stress bound managers and all mothers with small

children should always keep a small store of cold pressed soya bean oil at hand:-

- 100g of cold pressed soya bean oil contain 31.7 mg of vitamin E.

- 13.7% saturated fatty acids.

- 25.3% monounsaturated fatty acids.

- 60.8% polyunsaturated fatty acids, of which 6.5% linolenic acid.

Soyabean oil is the world's largest source of vegetable oil. It is grown extensively in the

U.S.A., as well as South America and China. The North American Soya harvest,

which takes place around October each year, historically tends to determine the

prices of most other major oils, although in recent years the North American crop

has increasingly come under pressure from South American Soya, which is

harvested about March, and from European Rapeseed, which is harvested about

July. Soyabean is also extensively grown in India. Madhya Pradesh is known to

be the Soya bowl of the country.

Typical composition %

Saturates 15

Monounsaturated 23

Polyunsaturated 62

Soya Oil contains higher levels of poly-unsaturates (which break down on being heated)

than, other such as Rapeseed Oil or Palm Oil. This gives the oil its special characteristic

of healthy oil. It is particularly attractive as a food ingredient and in the production of

margarines and spreads.

It provides a healthy, nutritious and delicious cooking medium. The oil has special

14


15/58

advantage over other oils as it is low in calories due to higher level of poly unsaturates. It

is also a rich source of Vitamin E. Due its safe use for heart patients it is being used by

millions of housewives and cooks all over the world.

MAJOR PLAYERS OF SOYABEAN OIL

1. AMRIT BANASPATI CO. LTD

At Amrit Banaspati, Company has stayed close to our roots nature. Co. has special

understanding of nature and her ways have enabled Co. to grow from a Vanaspati

company to a multi product organization producing a whole range of edible oils and fats.

Today ABC has an installed capacity of 10,000 metric tonnes per month as compared to a

mere 3,000 metric tonnes per month in its first year of operations. This stupendous

growth has been possible because ABC has continuously endeavored to bring new

products to the Indian consumer and that end is R and D has played a key role.

Further ABC has over the years introduced a range of refined oils namely, soyabean,

groundnut, cottonseed, mustard and sunflower with the objective of meeting the varied

need of Indian consumer.

15


16/58

Besides ABC also produces bakery shortening and confectionery fats and oils among

other products that meet your specific needs.

Most importantly, all the products meet the stringent international standards. So much so

that ABC brands are household names today and have been honored with the Monde

Selection Medal of Brussels on several occasions.

TURNOVER:-

The present turnover of Amrit Group is around 600 crores and of Rajpura unit is around

Rs.340 crores in terms of turnover. Amrit Banaspati company has been ranked amongst

the top 100 companies in the India.

QUALITY OBJECTIVES :-

Ensuring availability of all products in all packs sizes across the distribution channel.

Achieve growth introduction of new products (industrial and consumers)

Creating and sustaining quality and hygiene consciousness at all levels of organizing

and promoting employees participation.

Organization and promoting employee participation.

Continuous enhancing the money of the customers

QUALITY:-

To ensure consistently in the quality of various products manufactured at Rajpura and to

further improve the quality of its various products, company has very good quality

control systems together with the research and development department which is

comparable to the best in the country.

It is to the credit of this good quality control systems and efficient R&D department that

ABC Rajpura has been honoured and awarded with the American International Quality

16


17/58

Certificates and Gold Medal to the management of ABC Rajpura a transworld tradefare

selection award of recognition for their outstanding performance in the manufacture in

the Gagan Vanaspati.

PRICING STRATEGY OF ABC.

Edible oil prices is affected not only because of national and international market

variations but because of internal factors such as government raw oils import policies

prices of other oils used in mixture and the total expected output of oil need crops. The

interstate ban on supply of raw oils also affects the pricing of the product.

While marketing the price structure the marketer has to watch carefully the pricing

strategy adopted by the competitors the pricing structure which represents the margin to

the distributors, retailers etc has an impact on the sales of the product, the pricing

structure of ABC Rajpura is as below :-

3.5 percent dealers margin.

5.5 percent retailers margin

ABC Brand also covers the distributors on restrospective basis if there is any price

fluctuations thus a safe play for the distrubutors and retailers too.

DISTRIBUTION OF PRODUCTS:-

All the products produced at ABC Rajpura are sold in the area of Punjab, Haryana,

Rajasthan, J&K, Himachal Pradesh, West Bengal and Chandigarh through 130

17


18/58

depots and 575 stations. Number of dealers engaged in distribution of Amrit Banaspatis

products are around 670.

2. ADANI WILMAR LTD.

Adani Wilmar Ltd. manufacture soyabean oil under brand name Fortune.

Fortune Refined Soyabean Oil is light, odorless and healthy oil. Most importantly it

contains OMG3 (Omega 3 fatty acids) an essential PUFA which needs to be

supplemented from outside sources. Soyabean oil is the preferred oil of many a

household across the world.

Adani Group is one of the fastest growing corporate houses in India . Its flagship

company Adani Enterprises Limited (formerly known as Adani Exports Ltd), is one of

the largest trading companies in India with Five Star Trading House status (Highest

status conferred by the Govt. of India).

Adani Exports trades in nearly 40 commodities in more than 55 countries around

the world.

The Group owns a fully functional multi-purpose port at Mundra in the Gulf of

Kutch, Gujarat.

Another Group company Adani Retail Ltd. is into retailing, and has opened 55

super stores in Gujarat known by the name of Adani Supermarkets.

The Group has also set up a BPO in Ahmedabad, iCall India Ltd. which caters to

both International and Domestic clients.

Adani Group is also involved in infrastructure development which includes

developing a Natural Gas distribution project building a township and an SEZ at

Mundra.

18
http://www.adaniwilmar.com/


19/58

Adani Group has emerged as an integrated and diversified group with leadership in the

areas of global trading, edible oil manufacturing and infrastructure development.

Fortune Refined Soyabean Oil, enriched with OMG3, gives you and your family PaanchKa Aashirwad.

Fortune Refined Soyabean Oil is the highest seller in the refined soyabean oil category

with 44% of the market share (As per AC Nielsen Retail Audit Index - MAT Mar.'06).

Paanch Ka Ashirwad is for:

1 Healthy eyes

2 A strong heart

3 The nourishment of the womb

4 Controlling diabetes

5 The healthy growth of your children

Fortune Refined Soyabean Oil is available in

Liner carton 200 ml

Pouches 200 ml, 500 ml, 1 ltr Pet bottles 500 ml, 1 ltr, 5 ltr

Jerry cans 2 ltr, 5 ltr, 15 ltr

Tins 15 ltr, 15 kg

Maha Fortune 15 ltr

DISTRIBUTION NETWORK

AWL has set up a strong distribution network of Company Distributors and Super

Stockists for its retail operations.

19


20/58

Today AWL has its distribution foot prints all across the country with various stock-

points catering to more than 3800 distributors, 600 Super Stockists and numerous

brokers and other trade associates. AWL's retail reach is more than 500,000 outlets

across the country and this retail reach can be compared with the best FMCG giants in the

country

MANUFACTURING FACILITIES

The company has strategically located its refining and processing facilities to both cater

to different parts of the country as well as harness the potential of oilseed growing areas.

The locations are at Mundra (Gujarat), Mantralayam (Andhra Pradesh), Bundi

(Rajasthan) and Haldia (West Bengal).

A. Mundra

AWL's largest state-of-the-art refinery is based at Mundra in the Gulf of Kutch in

Gujarat. The technology has been imported from De Smet of Belgium and Alfa Laval of

Sweden. The quality of oil is at par with best in the world, meeting USFDA standards.

AWL's Mundra refinery was started with an initial refining capacity of the 600 Tonnes

per Day (TPD) and after the recent expansion; Mundra has a consolidated refining

capacity of 2200 TPD and hydrogenation capacity of 350 TPD. This refinery is a model

for backward integration, starting from transportation of oil through pipelines from port

to the plant, to in house packaging material manufacturing like; blow-molding facility,corrugated box plant, tin manufacturing facility and multi-layer packaging film plant. In

addition to this is a 4 MW captive power plant that provides uninterrupted and hassle free

electricity.

B. Mantralayam

20


21/58

This plant was acquired from ITC & is reputed to be one of the best plants in India for

sunflower oil production. Theplant has a capacity to crush 450 TPD of seeds and

refining capacity of180 TPDoil.

C. Bundi

This plant was taken over from RICO industries. It has a capacity to crush 450 TPD of

seeds and refine 150 TPD of oil. The plant provides ideal location for processing both

mustard and soyabean. Apart from it there is also a processing facility at Jaipur, which

produces the premium quality pungent mustard oil packed as Fortune "Kachi Ghani",

exclusively to cater to the taste of pungent and pure mustard oil of eastern India .

D. Haldia

This plant was acquired from Acalmar, and has a capacity to refine 600 TPD of oil. This

plant provides ideal location for supplying to Eastern parts of the country. It also has

excellent facilities to manufacture Speacilty Fats, which is an alternative for Vanaspati.

Packaging Unit

In addition the to the above refineries, AWL also has packing operations at

Chatral [ Gujarat ]

Latur [ Maharashtra ]

Jaipur [Rajasthan]

Dharwad [Karnataka]

Cochin [Kerala]

Dewas [Madhya Pradesh]

21


22/58

3. The Ruchi Soya Industries Limited

Ruchi Soya Industries Limited is an agro industry of Rs 3081.60 crores turnover Ruchi

Group. It is the flagship company of one of the five companies of the group. The group

has an impressive net worth of Rs 401 crores (Rs 4010 million) and assets worth Rs

682.75 crores.

Ruchi Soya Industries Limited (RSIL) is Flagship Company of Ruchi Group. It is most

integrated Soya processor and first company in the country to export Soya meals,

manufacture edible grade Soya flour and textured Soya proteins in India. Its brand

`Nutrela' enjoys market leadership in the Soya product segment. RSIL is leading player in

vegetable oils, Soya flour and vanaspati products. It commands large share of market.

Three generation experience, integrated vision, entrepreneurship and industrial

competitive spirit has not only expanded the reputed business but has led to

diversification in closely associated ventures including foreign collaborations.

Ruchi's Soya Products

Ruchi Soya Industries Limited (RSIL) has a large team of experts, technicians, scientists,

administrators who are involved from the very beginning of the process of selection of

soyabeans, processing and transporting them to most advanced plants. The products are

produced under the supervision of an expert. The competent quality control team keeps

close watch right from the beginning to dispatch to the dealers.

The products are marketed throughout the country and even in wide range international

22
http://soyumm.com/index.html


23/58

markets. Strict quality control has developed enhanced faith, reliability and confidence of

customers in the Ruchi products.

The Company offers a great range of products in Soya foods and Oils as well. Its range of

Soya Foods include Nutrela Soya Chunks, Nutrela Soya Mini Chunks, Nutrela Soya

Granules, Defatted Soya Flour, etc. The range of oil offers a variety of low cholesterol

health prone products such as Soyumm (Pure refined Soyabean Oil), Sunrich & Pamban

(Refined Sunflower Oil), Nutrela Vanaspati, Mandap (Pure refined mustard oil).

It also offers Soya products such as Prosoy (Soyabean Meal) and Ruchithin (Soya

Lecithin).

Soyumm (Ultra Refined Soya Oil)

It is pure sparkling, odorless oil manufactured from selected golden yellow Soyabean

with sophisticated, advanced, most modern technology preserving and enchanting natural

flavor, taste and nutritive value of the food stuff cooked.

It is healthy medium of cooking and recipes. High in nutrition, low in calories It is high

in poly - unsaturates with approximately 55% and low in saturates.

One tbsp of Soyumm gives approximately 120 calories. It has 15% less saturated fatty

acids hence it helps in controlling cholesterol levels. It is rich in vitamin E.

According to medical experts, it is good source of essential amino acids, which are

required for good health. Boon for cooking medium

It is economical and you home ministry and finance ministry will love it. Applicable and

availability Ruchis Soyumm is available in bulk for industrial use such as in

manufacture of mayonnaise, salad dressing, margarines, vanaspati, shortenings, surface

coating and fish canning industries. For domestic use, it is available in 15 kg tins and

branded consumer packs of lt. and 1 lt. poly packs at all wholesale and retail outlets.

23


24/58

4. CARGILL LTD

Cargill maintains a number of businesses in India, with operations including the handling

and processing of a wide range of products, including refined oils, grain and oilseeds,

sugar, cotton and animal feed. In addition, Cargill develops flavour systems and operates

a value investing business.

Cargill is one of the biggest food companies in the world having more than 130 years of

expertise in food grain selection and processing. It is the world's biggest producer,

processor, and refiner of sunflower oil. Cargill has made quantum leaps in the smallperiod of two years in the Indian food market.

Having entered into the Indian market recently, Nature Fresh today is the second-largest

multinational atta brand in India and has a steadily growing market share in all the

regions. The brand has also attained a double-digit market share in the branded refined

edible oils category, and has made good inroads in the basmati rice and salt categories as

well.

Headquartered in Minneapolis, Cargill Foods is a $45-billion company ranked 45 th in

sales in the Fortune magazine's Global 500 and fifth among the companies in the

prepared foods category in the magazine's ranking of the top 250 global food companies

in 1999

Soyumm

(1 Ltr Pouch )

Soyumm

(1Ltr Bottle)

Soyumm

(5 Ltr Jar) Soyumm(15 Kg Jar)

Soyumm(15 Kg Tin)

24
http://var/www/apps/conversion/tmp/scratch_2/http://var/www/apps/conversion/tmp/scratch_2/http://var/www/apps/conversion/tmp/scratch_2/http://var/www/apps/conversion/tmp/scratch_2/http://var/www/apps/conversion/tmp/scratch_2/


25/58

After the resounding success of its flagship Nature Fresh brand of branded packaged

food products, Cargill Foods has launched ActiLite, a new refined blended oil that is

light and good for health.

ActiLite is a refined blended oil that contains the power of two the lightness of

sunflower and the nutrition of soyabean. ActiLite offers a right balance of three kinds of

fat (MUFA, PUFA and SFA) and is, therefore, a healthy well-balanced oil.

ActiLite provides the added advantage of being a light oil because of its excellent

refining process, which removes all impurities, colour pigments and wax, making it

almost transparent and very light.

ActiLite is available in transparent packaging, which has been the hallmark of Nature

Fresh Oils, and allows the consumer to see the lightness of the oil before they purchase it.

ActiLite is available across India and is priced at:

SKU West Bengal / Bihar / Jharkhand / J&K /A&N / NESA Rest of India

1 L pouch 61 59

2 L pouch 130 126

5 L pouch 315 305

DISTRIBUTION NETWORK:

Co.s presence in India has been growing since it began a joint venture operation in 1987

and today it has an access over 1000 towns and 2,50,000 retail outlets. Its head office is

located at cyber city phase 3 Guargoan ( Haryana).

5. DHARA FOODS PVT. LTD.

25


26/58

Product

Dhara has 23 variants of mustard, rapeseed, sunflower, groundnut and soyabean oils in

its product basket. Dhara Refined Vegetable Oil contributes 50% by value, to the Rs.

3,300 million turn over Dhara enjoys.

Incorporated in 1999 with an objective to carry on the business of masala, spice, flour,

pickle and many more exports and processing of Besan, Maida, Sooji, Atta Cereals

etc.

Dhara group was founded to export flour and Indian spices into the global market by

improving efficiency and assured quality

Despite being primarily a support to the small-scale Indian farmer, Dhara has played a

crucial role in changing the industry norms and enriching the sluggish edible oilsmarket. For instance, the brand was the first to change the weights and measurement

descriptor from the kilo regimen to the litre regimen.

Dhara is possibly stocked by more retailers than any other packaged edible oil brand

in the country.

So profound has been the impact of Dhara on the Indian market that consumers often

ask for the 'Green Pack'. This has led many players in the industry to themselvesswitch to this colour.

Achievements

26


27/58

Dhara is at the forefront of the branded edible oil market, leading its consumer pack

segment. It has also been rated by ACNielsen as being among the top five fastest

growing brands in the FMCG sector in India in 2003. Through its value creating

strategies and emphasis on purity and quality, the brand has consistently created

benchmarks for the entire edible oil industry, including Indian subsidiaries of

multinational brands. It has successfully addressed the changing needs and tastes of

the consumer and introduced variants from time to time. Dhara can also justly take

credit for bringing world-class practices in packaging of edible oil to the country. It

introduced tamper-proof aseptic packaging to guarantee that only the purest quality

reached consumers. Even today, Dhara is the only edible oil in the country that uses

the tetra pack technology with six-layer packaging and undertakes more checks and

tests than any other brand in the industry. Tetra packs allow the oil to be packed

without the use of additives for maintaining shelf-life. Dhara's light weight and

hygienic five-layered PET jar with a double handle arrangement was developed during

1997/98, making the clear refined sunflower oil visible to consumers, further adding

to their confidence in the brand. This pack has won a series of awards India Star 98

in Mumbai, Asia Star 98 in Beijing and

WHAT RETAILERS HAVE TO SAY

1) Low margin: - Most of the retailers complained that they get very low margin

in all the products of ABCL as compared to its competitors thats why unable

to sell the local brand.

2) Leakage problem: -The retailers also complained about the leakage problem

faced by them in the cartoons of Ginni and no replacement, but othercompanies are giving them full replacement of leakage packages.

3) Feed back problem: - The retailers also complained that they get very less

feed back from the company, like whenever any scheme is introduced by the

company, they are not even made aware of the scheme.

27


28/58

4) Quality problem: - The retailers also said that sometimes the quality of soya

oil is low they have face problems regarding their image

5) MRP Problem :- Retailers also complained that in the days of rising prices,

sometimes it happens that MRP of ginni products is less than the price at

which they have purchased it from the distributor.

6) PROBLEMS related to new products :- they complained that sometimes

they are even unaware of companies new products

WHAT CUSTOMERS HAVE TO SAY

1) MRP problem :- customers complaint that sometimes they have to pay

more price then the MRP

2) Leakage problem:- customers even told that sometimes they have to

face leakage problems

3) PROBLEMS related to new schemes : customers complaint that even

sometimes retailers dont even tell about new schemes

4) DISCOUNT schemes:- customers complaint that there are very less discount

schemes on soya oil as compared to other refined oil

28


29/58

CHAPTER - 2

OBJECTIVE AND RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

Research would be carried out based on these objectives.

1) To find out customer preferences towards different brands of soya

bean oil.

2) Market share of each brand towards total market share of soya

bean oil.

3) What is the margin retailers are getting from various brands &

what are the brands they want to sell.

4) What problems are they facing related to new or various products.

5) To get the feedback from retailers & customers as well.

29


30/58

RESEARCH METHODOLOGY

Research Design

A research design is the arrangement of condition for collection and

analysis of data in a manner that to, combine relevance to

research purpose with economy in procedure. It is conceptual

structure within which research is conducted. It constitutes the

blue print of collection, measurement and analysis of data.

Research Design stands for advance planning of methods to be

used for collecting relevant data and techniques to be used in the

analysis.

Research design used is Descriptive type.

DATA COLLECTION

Primary data : It will be collected through questionnaire and

personal interview with Consumer and Retailer.

Secondary Data: The secondary data comprises of various Books,

Journals, Periodicals and other published magazines, websites.

SAMPLING DESIGN

Sample Unit: Retailer and consumer

Sample Size: 100 Consumer and 50 Retailer

30


31/58

Sampling Procedure: Convenience Sampling.

DATA ANALYSIS

It will be done with the help of the tabulation technique and graphical

method. It will be done with the help of pie and bar graph.

LIMITATIONS OF STUDY

I will considerAhmedabad City for survey because of time and cost.

The sample size is comparatively very small compared to the

population and there are chances that it may not represent the whole

population.

Finding of the study will be based on the assumptions that respondents

have given correct information.

Information provided by respondents may be biased.

The study is academic in nature.

31


32/58

CHAPTER - 3

DATA ANALYSIS AND INTERPRETATION

Analysis of Retailer Responses

Q. 1:- Which brands of soya bean oil are available in your shop?

Brands Percentage% of total sample

date of retails

Fortune 40 80%

Nature fresh 25 50%

Soyumn 32 64%

Ginni 10 20%

Dhara 20 40%

32


33/58

Interpretations:

Out of 50 retailer respondents, Most of the respondents carry more than one

brand. Majority of them had Fortune Oil followed by Soyumn and then

nature Fresh and maximum out of them were having or were dealing in

almost all the brands

Q. 2 :- Which soya bean oil has maximun sale per month?

33


34/58

Interpretations:

Brands Percentage

Fortune 72

Nature fresh 14

Soyumn 6

Ginni 4

Dhara 4

34


35/58

Out of the 50 retailers, 72% were of the view that Fortune has maximum

sale per month, 14% said Nature fresh has maximum sale, 6% said Soyumm,

4% said ginni and 4% said Dhara has maximum sale per month.

QUES 3 :- What Quantity of soyabean oil has maximum sale?

1 ltr 5ltr 15ltr

No. of respondents 40 5 3

35


36/58

Interpretations:

As shown in the diagram 1ltr packing is the most saleable and it holds 82%

share of the total. Total 42 retailers respondent said that 1 Lt is the most

common packaging in which the oil is sold.

Only 5 retailer said that 5 ltr pack is maximum sold and 3 retailer said 15 ltr

is maximum sold.

QUES 4 :- Rank of the followings attributes in soyabean oil

between 1-5 according to customer importance

( 5 being maximum)

GRADING 1 2 3 4 5

36


37/58

Taste 3 16 23 3 5

Quality 3 18 20 5 4

Packaging 6 16 18 5 5

Brand image 7 21 8 8 6

Price 1 2 1 6 40

Interpretations:

From all the major ranking done for various factors that decides the

consumption of Soyaben oil, is PRICE.

PRICE is one of the most important factor that influences buying decisions

by various customers. Second important factor is brand image followed by

taste of the oil.

QUES 5:- What influences customers to buy the brand?

Advertisement 12

37


38/58

Attractive Packaging 5

Shop Display 10

Price 22

Discount 6

Health conscious 22

Interpretations:

As per retailer most of the customers consume soyabean oil because either

they are suffering from any heart disease or are health conscious. On the

contrary customer is also price sensitive, but due to health reason they prefer

consuming Soyabean Oil. Here in the survey, response received is for

multiple options from a single respondent.

QUES 6 :- What are customer's feedback regarding soyabean oil?

Interpretations:

Customers are not satisfied with the discounts or the great offers they are

getting, sometimes they have to pay more than the MRP , they consume

38


39/58

soyabean oil just they are going health conscious , moreover they are

receiving certain complaints regarding the tetra packing because of leakage.

QUES 7 :- Are the retailers satisfied with incentives from the oil

company?

Interpretations:

Many of the retailers said that they are satisfied with the incentives they are

getting. 38 Retailers from 50 (76%) are satisfied.

Yes 38

No 12

39


40/58

QUES 8 :- Are you satisfied with the services of the brand you are

selling?

Interpretations:

60% of the retailers said that they are satisfied with the brands they are selling. While

40% said they are not satisfied with the brands they are selling. Most of the retailers are

satisfied with the brand they are selling.

QUES 9 :- If no then what are the suggestions you will give to the

company?

Proper Transportation 7

Promotional Schemes 8

Yes 30

No 20

40


41/58

Profit Margin 18

Credit Facility 17

Interpretations:

36% of the retailer gave suggestion that the company should provide

retailers good Profit margin followed by the Credit facility to boost company

sales.

QUES 10 :- Any suggestions to the company?

They want that their margin should be increased each and every rather than

they go on a fixed margin ,even they want that certain perks or some

schemes should be given to retailers also.

Analysis ofCustomer Responses

41


42/58

QUES 1:- Do you use soyabean oil?

Interpretations:

Customers respondents agreed that they use soyabean oil and out of 100

respondents 62%agreed.

QUES 2 :- If yes (check) the brand you use?

Yes 62No 38

Fortune 25Nature fresh 12Soyumm 15Ginni 2Dhara 8

42


43/58

Interpretations:

25 customers use fortune, 12 use nature fresh, 15 use soyumn, 2 use ginni

and 8 use Dhara brand.

In consumption as well as preferable brands FORTUNE leads with 40%.

QUES 3 :- Rank the following attributes according to their

importance to you? (5 being maximum)

GRADING 1 2 3 4 5

Taste 6 19 25 5 7

Quality 5 17 27 6 7

Packaging 9 19 23 6 5

Brand image 9 23 6 15 9

Price 2 4 7 9 40

43


44/58

Interpretations:

Out of the various attributes shown above PRICE is one of the most

important factor that influences buying decisions of various customers.

QUES 4 :- What influenced you to buy the above stated brand(s)?

Advertisement 3

Attractive Packaging 4

Shop Display 12

Price 21

Health conscious 22

44


45/58

Interpretations:

22 customer said Health consciousness influence to buy selected brand while

21 customer said price influence buying decision. 12 customer say they

recall to buy particular brand on the basis of shop display. Few customer

said that advertisement and attractive packing affect their buying decision.

We can say that health consciousness and Pricing is again the leading factor

followed in determining the buying decision.

QUES 5 :- If particular brand is not available with retailer the you

will. . . . .?

Drop the idea of buying it 2

Go to another retail outlet 37

Try another brand 23

45


46/58

Interpretations:

As per the collected data, 37 customer wants to stick to the same brand go to

another retail outlet while 2 customer drop the idea of buying it and 23

customer will try another brand.

It is clear that customers want to stick to their particular brand rather than

trying out some different brand.

QUES 6 :- A sale promotion scheme like rs 10 off , 250 gms extra

or a product free, whould it affect you purchase decision?

YES 47

NO 15

46


47/58

Interpretations:

Almost 47 customers agreed that sales promotion schemes do effect the

buying decisions.15 customers said sales promotion doesnt affect buying

decision.

Most of the customers said sales promotion schemes affects buying decision.

QUES 7 :- What size of packaging do you normally buy?

1ltr 37

5ltr 12

15ltr 13

47


48/58

Interpretations:

37 customers said they prefer 1LTR packaging, 12 prefer 5 ltr packaging and 13

customer prefer 15 ltr packaging.

Most of the customers prefer 1 ltd packaging.

QUES 8 :- Are you happy with the kind of soyabean oil brands

available in india, today?

YES 37NO 25

48


49/58

Interpretations:

Majority of the customers are satisfied with the brands that are available inIndia.

QUES 9 :- If no then why not?

Interpretations:

All the customers have given their suggestions as well as complaints which

are shown later.

49


50/58

CHAPTER - 4

FINDINGS

Following are findings of the study:

Most of the retailer keeps Fortune Refined soyabean oil. Most of them keep more

than one brand.

82% retailers respondent said that 1 Lt is the most common packaging in which

the oil is sold.

72% were of the view that Fortune has maximum sale per month.

Price is one of the most important factor that influences buying decisions by

various customers.

As per retailer most of the customers consume soyabean oil because either they

are suffering from any heart disease or are health conscious.

Many of the retailers said that they are satisfied with the incentives they are

getting.

60% of the retailers said that they are satisfied with the brands they are selling.

Most of the retailer gave suggestion that the company should provide retailers

good Profit margin

In consumption as well as preferable brands FORTUNE leads with 40%.

Most of the customers say that health consciousness and Pricing is again the

leading factor followed in determining the buying decision.

Most of the customers want to stick to their particular brand rather than trying out

some different brand.

Most of the customers said sales promotion schemes affects buying decision.

Most of the customers prefer 1 ltd packaging.

50


51/58

Majority of the customers are satisfied with the brands that are available in India.

CHAPTER - 5

SUGGESTIONS

1) Leakage problem should be looked after and the replacement of the leaked

packets should be given to them.

2) The company should reduce the cost of their products and the margin of the

retailers should be increased.

1) There should be proper channel of information, whenever any scheme is

introduced by the company for the retailers, they should be properly informed

about the scheme. There should be proper feedback for the retailers as well as

customers whenever any scheme is introduced for the retailers & customers

and they should be made aware of it. Sales representatives should be given

guidelines to intimate each and every retailer of his area about the schemes.

3) In the same way, whenever any scheme is introduced for the consumer there

should be atleast a print advertisement if T.V. advertisement is not possible.

4) Other incentives should also be given to the retailers like glow sign boards etc.

5) Being all the companies are ISO 9001 company, it is not good for the

reputation company that it is getting complaints about the products related to

quality. More emphasis should be laid on the quality to avert such

circumstances.

6) Regarding the introduction of new products, the company should go for

aggressive marketing. There is a lot of potential in Soya Refined oil segment,

but retailers are not even aware of our product.7) Whenever any consumer oriented scheme is introduced, the scheme should be

directly targeted to that person who actually uses i.e., house wives.

8) Non monetary incentives should be also given to the retailers in each and

every city. They should be given glow sign boards and other sales

promotional materials. This will boost up their spirits.

51


52/58

9) MRP problem during the days of rising prices should be taken care. In this

situation if retailers are getting the products on a price higher than the MRP

they cant sell it more than the MRP. So this problem should be looked after

carefully.

52


53/58

CHAPTER 6

BIBLIOGRAPHY

Bibliography

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of India).

Business today

GREEN AND TULL , Marketing Research

WEBSITES

www. google.co.in

www.adani.com

www.amritbanaspati.com

www.Soyumm.com

www.cargill.com

www.dharaproducts.com

www.naturefresh.com

53
http://www.adani.com/http://www.amri/http://www.cargill.com/http://www.dharaproducts.com/http://www.adani.com/http://www.amri/http://www.cargill.com/http://www.dharaproducts.com/


54/58

CHAPTER -7

ANNEXURE

QUESTIONNAIRE FOR RETAILER

[1] Which brands of soyabean oil are available in the shop?

O Fortune o Nature Fresh o Soyumn o Ginni o Dhara

[2] Which soyabean oil has maximun sale per month?


[3] Which packaging has maximum sale ?

O 1 ltr. O 5 ltr o 15 ltr

[4] Rank of the followings attributes in soyabean oilbetween 1-5 according to customer importance( 5 being maximum)

GRADING 1 2 3 4 5

Taste

Quality

Packaging

Brand image

Price

54


55/58

[5] What influences customers to buy the brand?

O Advertising o Attractive packaging o Retailer

o Shop Display o Pricing o Discount o Health Conscious

[6] Are you satisfied with incentives from the oil company?

O Yes o No

[7] Are you satisfied with the services of the brand you areselling?

O Yes o No

[8] If no then what are the suggestions you will give to thecompany?

O Transportation o Scheme o Margin o Credit

[9] what are customer's feedback regarding soyabean oil?

[10] Any Suggestions?

55


56/58

_____________________________________________________________

_____________________________________________________________

__________________________________________________________

QUESTIONNAIRE FOR CUSTOMER

[1] Do you use soyabean oil?

O Yes o No

[2] If yes (check) the brand you use?


[3] Rank of the followings attributes in soyabean oilbetween 1-5 according to customer importance( 5 being maximum)

GRADING 1 2 3 4 5

Taste

Quality

56


57/58

Packaging

Brand image

Price

[4] What influenced you to buy the above stated brand(s)?

O Advertising o Attractive packaging o Retailer

o Shop Display o Pricing o Discount o Health Conscious

[5] If particular brand is not available with retailer then what will

you do?

Drop the idea of buying it

Go to another retail outlet

Try another brand

[6] What according to you a suitable price for 1 ltr which is

of good quality?

below Rs 30between 30 and 40

between 40 and 50

more than 50

57


58/58

[7] If your brand is few Rs expensive than it, then will you

go for it?

O Yes o No

[8] A sale promotion scheme like rs 10 off , 250 gms extra

or a product free, whould it affect you purchase decision?

O Yes o No

[9] What size of packaging do you normally buy?

[10] Are you happy with the kind of soyabean oil brands

available in india, today?

O Yes o No

[11] If no then why not?

1ltr

5ltr

15ltr

Analysis of Various Brand of Soyabean Oil

Documents

Transcript of Analysis of Various Brand of Soyabean Oil