Case Study Of Packaged Edible Oil

Packaged edible oil is a flourishing sector in India. Many players have entered into this sector due to its high growth potential. However there are a few who are leaders in this segment. Packaged edible oil accounts for 20% of total edible oil sector in India.

Marico Limited with its brand Saffola is one of the early entrants in this segment and continues to remain in top three till now. Marico is known for its edible oil with health benefits and thus caters to a specific segment of consumers in the market. The oil is made of only two main ingredients and thus it follows altogether a different supply chain.

Adani Wilmar Limited, a company formed out of 50:50 joint venture is expanding in manufacturing of most the edible oil. The company is

It formed a joint venture with one of the biggest Agribusiness company based in Singapore, Wilmar International Limited. The companies with their proficiencies in respective fields created a complete supply chain which is unique in edible oil sector.

The supply chain not only provides them cost benefits but also technological advancements over other firms in terms of crushing, refining and packaging on a large scale. This helps the firm to provide different types of edible oils. The company sells its packaged edible oil under the brand name of Fortune and projects it as oil which is healthy and light. The advertisement with a tagline “ Thoda aur Chalega” shows that the oil is suitable for all type of cooking purposes, different dishes and for all age group.

Major players in the industry

Fortune holds a good position in packaged edible oil sector. It provides refined and packaged oil which is hygienic. It faces a stiff competition from players such as Ruchi Soya, Marico Limited etc. in organised packaged sector as well as unorganized and unpackaged edible oil players. Despite this the consumption has increased since the time it has come into existence. It has captured a large portion of market share in the last 15 years and has been continuously increasing its crushing, packaging and processing capacity. The brand has reached to different parts of the country through the vast distribution

Adani Wilmar Limited has built up its seed crushing capacity to 7400 tonnes per day. The refining capacity has been increased to 10400 tonnes per day from the initial capacity of 600 tonnes per day. The company is capable of refining 9000 tonnes per day. The company has its own seed crushing, refining and packaging units in India. It also procures its palm crude oil for refining from Indonesia and Malaysia which is the largest producers of palm. Their understanding of Indian market has helped them to expand to different parts of the