ACKNOWLEDGEMENT

"Project is a challenge for every student that they does their work well
and complete in time" I also try to achieve it. The research work requires
co-operation of many people and this work is no exception.
Its pleasure to be able to acknowledge the direct and indirect help I have
received in task of developing the report. It would not have been
possible to develop such a project without the contribution, effort and
great deal of encouragement on part of numerous individuals. It is
difficult to thank individually all the persons who patronized this work,
but I'll hardly take the names who helps a lot as much possible as they
can.
First and foremost, I would like to express my sincere and profound
gratitude to Mr. Kastur chand singhvi (CMD) and to Mr.Prakash
singhvi (CEO) of Singhvi Oil Industries Pvt. Ltd. Singhvi Group-India
for letting me to develop a project and for assigning Mr. Prakash
singhvi as a project guide, whose guidance has given a proper shape to
this project. His attitude excellence, his helping nature and his
enthusiasm has been source of constant inspiration. His unhitching
support during the work was throughout, constantly encouraging to
doing my best and inspiring me to aim higher, who proved to be a
leader, a guide and a friend.

I'll be failing in my duty, if I do not express my indebtedness to my
family member to generating confidence in my right from the
commencement of this task to its accomplishment.

I am also very thankful to our college "PACIFIC INSTITUTE OF
MANAGEMENT" mid to the entire staff member for providing with
necessary facilities and support, essential for bringing out this work in
short time. Last but not the least, I am thankful to all my respondents,
who gave me there precious time and support to fulfill this task, without
their co-operations the study would not have seen the light of the day.








Ms.Richi Singhvi
MBA III SEM


CONTENTS


S.No Contents Page No(s)
Acknowledgement
Chapter-I
(a)


Introduction to the topic

Executive Summary 5
(b) Introduction to Edible oil industry
i Edible oil market in India 6-10
ii Processing of Soya Oil 11-12
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EXECUTIVE SUMMARY

The objective of this research is to determine the
customer as well as retailers preferences regarding
different soya bean brands which result in their 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 affecting the consumer s buying
behavior.


COMPANY PROFILE
Singhvi Oil Industries Pvt. Ltd. An ISO 9001:2000 certified
company, has covered a unique niche in the world of marble with its
wide range, impeccable quality and masterful processes. In its
yesteryears the company was world renowned for its pioneer role in
the production of stone.
Mr. Kastur chand singhvi CMD
Mr. Prakash singhvi CEO

The co-founder of singhvi oil industries Mr. Kastur chand
established this industry. He is the real milestone of the industry and
he creates a different image of the industry in this competitive
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market. In this global scenario he established the industry and
introduce about their product.

















EDIBLE OIL MARKET

India accounts for 9.3 percent of world oilseed production.
It has the worlds fourth largest edible oil economy. Yet,
about 43 percent of edible oil available in India is imported.
In 1999 India ranked as the worlds largest importer of
edible oils, displacing China. The bulk of edible oil India
imports under the Open General License (OGL) are RBD
Palmolein of Malaysian and Indonesian origin

India has approximately 300 crude edible oil refining units.
60-70 percent of which are small. Unlike the bigger
refiners. The small ones are unable to import huge quantities
of crude either due to their low capacity or lack of financial
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resources, and may be forced to close down or sell out to
the bigger ones in the foreseeable future.


A major problem is the low capacity utilization. The installed
capacity of oil mills is around 36 million tones annually,
but capacity utilization is only 40 percent solvent
extraction plants show only 33 per cent capacity utilization
and vegetable oil refineries show 40 per cent.


The total import of edible oils during the period form
November 1998 to October
1999 totaled 4.4 million tones valued at more than Rs. 9.000
crores. That was against a demand supply gap of 1.4
million tones in 1998-99. Imports have therefore deluged the
market.


The import of relined palm oil was put under OGL (Open
general License) in March 1994. Other edible oils were put
under OGL in April 1995 (when an item is brought under
OGL, it means that the item can be imported without seeking
any approval).
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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. Duty was the slashed to 30
percent for both, then to 20 percent in 1996 and 15 percent
in then
1999-2000
budgets.

On December 30, 1999 a differential duty structure was
introduced. Duty on refined oil was fixed at 27.5 percent (25
percent plus 10 percent surcharge) while that on crude was
retained at 16.5 percent (15 percent plus 10 percent
surcharge) But only actual users (as opposed to traders) are
allowed to avail of this reduced duty on crude oil. Traders
are nevertheless allowed to import crude at the reduced duty
but only to sell to actual users on a high seas basis. This
requires that the actual users fills in the import documents
(and pays the reduced duty) but leaves the importing
process to the trader.


In most parts of the world, the import duty on oilseeds is
lower than that on oils. But, in India it is higher 40 percent.
That is why no import of oilseeds of oil bearing material
has taken place in India. The industry wants the duty to be
lowered from the present 40 percent to 5 percent.
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IMPORTANCE OF EDIBLE OIL S IN THE COUNTRYS
ECONOMY

Oilseeds and edible oils are two of the most sensitive
essential commodities. India is one of the largest producers
of oilseeds in the world and this sector occupies an
important position in the agricultural economy and
accounting for the estimated production of 25.14 million
tonnes of

nine cultivated oilseeds during the year 2003-2004. India
contributes about 8-9% of the world oilseeds production.
Export of oil meals, oilseeds and minor oils has increased
from 2.28, million tones in the financial years 2003-2004.
In terms of value, realization has gone up from Rs.2653/-
crores to Rs.5447/- crores. India accounted for about 6.4%
of world oil meal export.

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 of oils. Figures pertaining to production
of major cultivated oilseeds , availability of edible oils from
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all domestic sources and consumption of edible oils (from
Domestic and Import sources) during the last few years are
as under :-




In Lakh Tonne
Oil year
(Nov-
October
)
Productio
n of
oilsee
ds
Net availability
of edible oils from
all domestic
sources
Consumption of
edible oils (from
domestic and
import sources)
1998-1999 247.48 69.6
0
95.82
1999-2000 207.15 60.1
5
102.11
2000-2001 184.40 54.9
9
96.76
2001-2002 206.63 61.4
6
104.68
2002-2003 150.58 47.2
8
90.93
2003-2004 251.42
(4
th
advance
Estimates)
71.0
9
(Est.
)
124.04
(Est.)
2004-2005 248.42


73.1
0
117.10


Source (i) Production of oilseeds, Ministry of Agriculture
as Declared on 19-01-2005.
(ii) Net availability of edible oils, Directorate
of Vanaspati, Vegetable


CONSUMPTION PATTERN OF EDIBLE OIL IN
INDIA

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.
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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.
The share of raw oils refined oils and vanaspati in the total
edible oil market is estimated at 42%, 48%and 10%
respectively.


SOYA OIL


The source: -
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Soya was developed in China even before the time of written
records. The name of the Soya 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.

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. In addition to its agricultural value, the soyabean also
supplies especially healthy oil, which is making more and more
friends.

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
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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.

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.















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The end-users of our products are: households and institutional buyers
[catering / hospitality / processed food / snacks] set-ups. AWL has set
up a strong distribution network of Company Distributors and Super
Stockists for its retail operations. This chain helps to tap even the
small retailers/traders and thus increasing our reach.


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