Findings

Refined oil made up for most of the sales in the edible oil category in Delhi/NCR owing
to a general rise in income levels and health awareness levels
In markets such as south and central delhi, presence of natures fresh and fortune was
limited as olive oil and saffola blended oils were largely popular there
Most of the areas in north, west and east Delhi were reporting high sales in soyabean
and mustard oil category as fortune, natures fresh were commonly available here
A lot of people were willing to shift to another brand for better quality and greater
health factor
Fortune was the most preffered brand amongst the retailers.
Local oil and ghee brands like kanodia, pratap, rro are also popular amongst retailers as
they provide good margin and have decent sales
Fortune soyabean oil was reported to be the highest selling variant in the refined oil
category
While sweekar oil was reported to be the lowest selling variant in the refined oil
category
Canola, ricebran and olive oil were picking up in terms of sale, as more and more people
consider the health factor
Sunflower category was recording a drop in sales, as blended oil category has taken over
it
Fortune is also the most preferred in the category of mustard oil, which has a significant
market share
According to the retailers fortune provided the highest margin on MRP of its product,
which is Rs. 17-20 (1 L)
Also, saffola provided the least margin on MRP, which is Rs. 5 (1L)
Other companies provided discount in the range of Rs. 15-17 (1L)
The margin was greater in case of retail chains and wholesellers, who gave a discount of
Rs. 15-25 on a liter of oil with the exception of saffola
Some of the recently launched oils like the jivo canola ad Hudson canola oil were
offering heavy discounts on their products
In case of ghee, milkfood was reported to be the highest selling brand followed by Paras
Everyday and nestle were reported to be the lowest selling brands
Considered to be almost an extinct category vanaspati ghee is still available in many
stores and still selling in decent numbers
1 liter packing of ghee and oils were the highest selling and most preferred by the
consumers

Conclusions
There is a general rise in the living standard and awareness level of the people, as more
and more people are preferring refined and processed edible oils
The middle class people are mostly consuming soyabean, mustard oil but now they have
started purchasing blended oils, canola oil and olive oil for better health prospects,
despite these oils being quite expensive
The upper class people have already shifted to blended and olive oil
Almost all the companies are focusing on the health factor stressing on a healthy heart,
with low cholesterol and low trans-fat being highlighted the most
Fortune has emerged to be the market leader in edible oil category as it is providing
good quality at lower prices and better profit margins to the retailers
Saffola has emerged the as the top brand for health conscious people as saffola provides
only blended oils, which contains the goodness of multiple oilseeds
1 liter packing of ghee and oils were preferred by both consumers and retailers as it
provided a greater margin to the retailers and a lot of consumer felt a 5 liter can was
difficult to handle, store and the oil wont be fresh for so long.
It is essential for companies for keep advertising and promoting their product as very
old brands like sweekar have dropped on sales as many people have even forgotten the
brand
The companies entering the edible oil markets generally provide heavy discounts or
certain scheme on their oil and also provide considerable margins to the retailers to
occupy their self space
Due to extensive use in commercial preparations, vanaspati ghee is still posting strong
sales
In case of ghee people still prefer Indian brands like milkfood and paras as these
companies focus on the pureness of ghee prepared in the countryside
Famous multinational brands like nestle and everyday have had minimal impact in the
ghee category as these companies promote hygiene and health factor, which is not
considered very important by the consumer





Recommendations for a new entrant
Since the general living standard of the people is on the rise, and in Delhi/NCR majority
of the oil sold is refined, the company should focus on high quality.
Any new entrant will have to focus on the health factor as all the companies are
focusing on the same and new categories like rice bran and canola oil are thriving in it
The company will have to be focused on in 1 liter packings, as the one liter packings are
most preferred by the consumers
The product will have to be priced at an optimum level neither too high nor too low, as
a higher price will discourage mass sales and a lower price will not ensure the people of
good quality also there is an intense competition in the lower priced oil category
the company will have to provide higher margins to the retailers to ensure a sizeable
self space is available to the product
The product should be launched with heavy discount or a scheme, to encourage more
and more people to try it.
the company will have to construct a strong distribution network so as to ensure that
their oil is available in maximum number of outlets as many people are willing to change
to a better quality of oil if available
the company can also undertake some light promotional activity before the launch, as
most of the cooking oil brands are not very heavily active in advertising their products,
so heavy promotional activities are not required



























With growing population, Indias demand for edible oil has been rising consistently with CAGR of 2.7% in
the last three years and around 5.5% in the last five years
A modest CAGR expectation of 4% by SEA shows that the demand is likely to touch 23 mmt by 2019-20.
As far as preference for edible oil is concerned, there has been marked switch from groundnut oil to
cottonseed oil, soybean oil and sunflower oil in these four states. This change could be attributed to
reasons like production cost, availability and other options available to growers which would increase
their income.
Saffron media
Adani Wilmar is the largest manufacturer of edible oil in India with a market share of about 45%.


HYDERABAD: Indian edible oil producers are increasingly shifting their focus towards the
packaged segment that has witnessed rising adoption by customers apart from yielding high
margins. As against 2-3% of margins on bulk oils, the packaged oils offer 5-10% of margins,
making it highly attractive for the oil producers.

While the packaged oil segment currently accounts for nearly half of India's 18 million tonne
market, the urban areas skewed ar ..
Read more at:
http://economictimes.indiatimes.com/articleshow/34872586.cms?utm_source=contentofi
nterest&utm_medium=text&utm_campaign=cppst

KOLKATA: The edible oil market is heating up once again with Bunge India drawing up plans
to aggressively push refined soybean, sunflower, groundnut and mustard oils. The oils will be
sold under the brand name Dalda, and will be available at prices which are lower than other
brands available in the market. Talking to ET, Dinesh Agrawal, business head, Dalda said: "Our
brand has been synonymous with vanaspati oil. But the vanaspati market has become stagnant
and is in a shrinking mode.

Therefore, we have decided to scale up our presence in other edible oils. The edible oil
consumption in India is still low at 15 kg per person against a world average of 22 kg per person.
So there is a huge scope for us to expand our edible oil business." India meets more than 50% of
its domestic consumption through imported oil. In the current oil year (October 2012 to
November 2013) the country is expected to import nearly 10.7 million tonne of edible oil.
Agrawal said that Dalda edible oils will be fortified with Vitamin A and D as states like Gujarat
and Rajasthan have made it mandatory for the sellers to add vitamins in their oils. "We have
aggressively started marketing of our edible oils in north and south India. Soon we will be
entering the western and eastern Indian markets. We are offering oils at a price which is nearly 3-
4 % lower than the brands available in the market." Bunge India also plans to launch palm oil
under the brand name Lotus. It also plans to introduce rice bran oil in the Indian market.
"We will process rice bran at our factory in Punjab and sell the oil. Rice bran oil consumption is
growing in India," Agrawal said. Availability of raw material for rice bran oil will not pose any
problem as India is the secondlargest producer of rice, after China. The country has the potential
to produce over 14 lakh tonne of rice bran oil, however currently it produces about 9 lakh tonne,
of which only 3 lakh tonne are used as an edible oil.