20-10-2012, 05:18 PM
Fortune Vs. Saffola
Fortune Vs. Saffola .ppt (Size: 731.5 KB / Downloads: 103)
The Breakup
The Indian edible oil industry is highly fragmented with a large number of small scale producers.
The ghanis belong to the SSI segment and usually serve the rural markets.
Out of the total production 70% comes under the unorganized sector, the branded oil constitute about 30%
Consumption Pattern
Extreme variation in consumption. The country’s top 10% of the population consumes 20 kg per capita and the bottom 30%, less than 5 kg per capita
Strong regional preference for ‘first press’ oils with natural flavour – mustard, groundnut, coconut oils
Per capita consumption of edible oil (year wise)
Edible Oils 12.7 million MT
Oils 11.2 million MT
Vanaspati 1.5 million MT
TYPES
Semi-Processed and Processed
Ready to Eat and Snack food
NATURE OF THE PRODUCT MARKET
Oils: primarily a commodity market - price sensitive
Effective distribution chain - through a complex network of C&F agents, wholesalers / stockists & retailers (kirana shops, supermarkets)
Oil sold in bulk (tin, HDPE containers) to institutions; In retail packs (PET bottles, cans, jars, pouches) to small customers
Most vegetable oil is purchased by household or industrial buyers, food processors, restaurants and hotels.
Seasonal demand for oils & Vanaspati - September to November (peak season)
Regulation : Under the Edible Oils Packaging (Regulation) Order, 1998, edible oils cannot be sold ‘loose’ but can be sold only in ‘packed’ form
Oil consumption - North is largest market, followed by South, West & East zones.
Production process
Oil mills crush oil seeds and extract oil, 70% of which is sold in the open market. The remaining 30% is refined and sold as branded oil. After the extraction of oil, residual seeds are processed further by solvent extractors, to make solvent-extracted oil. Most of the solvent extracted oil is used to make ‘vanaspati'.
Small scale expellers, much like the ghanis, use metal screws to press or expel oil from seeds. However, they are larger than the ghanis, oil expelling capacity being in the range of 5-10 tonnes per day, compared to around 50-60 kilos a day for ghanis.