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Indu Indu Document Transcript

  • ACKNOWLEDGEMENTIt would be prudent to commence this report with an expression of gratitude towards all thosewho have played an indispensable role in the accomplishment of this project by providing theirvaluable guidance. I would like to take this opportunity to acknowledge and thank Cargill IndiaPvt. Ltd. for providing me with this highly coveted opportunity to associate my SummerInternship Project with an organization of worldwide repute.I extend my most sincere thanks to Mr. Pritish Gupta, Zonal Marketing Manager and Mr. RajatSharma, Area Sales Manager for their help and guidance in various capacities which have beenextremely proficient in getting the best out of me by sharpening my rough edges from time totime.I am deeply indebted to my faculty guide whose help, stimulating suggestions andencouragement helped me in all time of research.I am also thankful to all my team members for their stimulating support and co-operation.My special thanks to my parents without whom it would have not been possible and foreverything of what I am today.
  • Table of ContentsExecutive Summary ...................................................................................................................... 3Over view of FMCG ..................................................................................................................... 4Swot Analysis of FMCG Sector .................................................................................................. 6Top Players in FMCG ................................................................................................................. 7Cargill In India............................................................................................................................ 12Product and Services offered by Cargill ................................................................................... 21Edible Oil Consumption ............................................................................................................. 23Ediblie Oil Players In UP ........................................................................................................... 24Cargill Brands at a Glance ......................................................................................................... 29Swot Analysis Of Cargill India Pvt Ltd .................................................................................... 35Project Objective ........................................................................................................................ 36Analysis of UP as a whole .......................................................................................................... 39Analysis of Kanpur Outlets ........................................................................................................ 42Analysis of Varanasi Outlets ...................................................................................................... 47Analysis of Allahabad Outlets.................................................................................................... 53Analysis of Lucknow Outlets ..................................................................................................... 60Suggestion For Increasing Market share in FFS segment ...................................................... 64Learnings ..................................................................................................................................... 68Limitation ................................................................................................................................... 68Conclusions .................................................................................................................................. 69Annexures ........................................................................................................................................References ........................................................................................................................................
  • Executive SummaryThis Study gives you an overview of market potential of edible oil market inUttarakhand and U.P. West with emphasis on competitors, areas,types ofoil,consumption of oil in different cities in Uttarakhand and U.P.West by collectingdata from various segments like halwai,bakery,hotels,restaurants,caterers andnamkeenwala.. The study throws light on what is Cargill market share and how canit improve its market share in Fragmented Food Outlets in respective states.Founded in 1865, Cargill is one of the largest international providers of food,agriculture and risk management products. With more than $120 billion turnoverand operations spread across 67 countries, Cargill today employs more than 1,60,000 people across the world and is trusted across for its commitment ofCargillishing peopleCargill Refined Oils India imports, refines, sells and markets a wide range ofvegetable oils and fats to wholesale trade, industrial and household consumersacross India. We own and operate Cargill vegetable oil refining facilities – threeare located on east and west coast ports of India, the other is located in westernIndia. Refined Oils India markets a range of refined sunflower, soy, palm, oleinand ground nut oils, hydrogenated fats and bakery shortenings under Cargillnational brands, Nature Fresh, Gemini, Purita™, and other region-specific brands.The Project given was to to assess the edible oil potential of Fragmented FoodService industry in Uttarakhand and U.P.West. The main objective was to mapdifferent Fragmented Food outlets and thus expand distribution network . Thework was done in stages which were 1. Mapping of the Fragmented Food Service Outlets in Uttarakhand and U.P.West. 2. Profiling of each micro segment of FFS. 3. Arriving at a volume potential of different types of edible oils. 4. Refined – Non Refined i. Sunflower, Soya, Palm oil, Vanaspati, Desi Ghee.
  • 5. Utility of the project 6. Devising Sales Strategies and Market Strategies for Fragmented Food Service channel in Uttarakhand and U.P.West. 7. To know the usage pattern of edible oil amongst consumers in various cities . 8. To know the awareness amongst consumers regarding types of Cargill food prodIntroductionOver view of FMCG :Fast moving consumer goodsIt is alternatively called as CPG (Consumer packaged goods) industry primarilydeals with the production, distribution and marketing of consumer packaged goods.The Fast Moving Consumer Goods (FMCG) are those consumables which arenormally consumed by the consumers at a regular interval. Some of the primeactivities of FMCG industry are selling, marketing, financing, purchasing, etc. Theindustry also engaged in operations, supply chain, production and generalmanagement.Fast Moving Consumer Goods (FMCG), are products that are sold quickly atrelatively lowcost. Though the absolute profit made on FMCG products is relatively small, theygenerallysell in large quantities, so the cumulative profit on such products can be large.Industry BackgroundFMCG is one of the most dynamic domains of the business world. A career in thissectorencompasses a large number of job roles like market research, pricing and productdevelopment, purchasing, advertising and brand awareness. FMCG is a sectorwheregraduates can gain excellent rewards if they work hard. FMCG products are thosethat move
  • off the shelves in retail outlets very quickly.In the Fast Moving Consumer Goods (FMCG) sector, one needs to be fast intranslating theideas into new products. There is a requirement to create the products that peopletrust, enjoyand use in their daily lives. Advertising and marketing have a vital role to play inthis.Sector OutlookFMCG is the fourth largest sector in the Indian Economy with a total market sizeof Rs.60,000 crores. FMCG sector generates 5% of total factory employment in thecountry and iscreating employment for three million people, especially in small towns and ruralIndia.Offerings of FMCGFMCG Sector (In 2010)The FMCG sector in India is the fourth largest sector in the economy with a totalmarket sizein excess of US$ 13.1 billion. The volume of money circulated in the economyagainstFMCG products is very high, as the number of products the consumer use is veryhigh.The Indian FMCG market has been divided for a long time between the organizedsector andthe unorganized sector. While the latter has been crowded by a large number oflocal players,competing on margins, the former has varied between a two-player-scenario to amulti-playerone.Unlike the U.S. market for fast moving consumer goods (FMCG), which isdominated by ahandful of global players, Indias Rs.460 billion FMCG market remains highlyfragmentedwith roughly half the market going to unbranded, unpackaged home madeproducts. This
  • presents a tremendous opportunity for makers of branded products who canconvertconsumers to branded products.However, successfully launching and growing market share around a brandedproduct inIndia presents tremendous challenges. Take distribution as an example. India ishome to sixmillion retail outlets and super markets virtually do not exist. This makes logisticsparticularly for new players extremely difficult. Other challenges of similarmagnitude existacross the FMCG supply chain.Increased competition in the FMCG industryThe recent rise of private-label goods has led to increased competition within theFMCGindustry. A focus on bringing high volume products at lower prices to the markethas createdgreater demands on all actors. Producers must differentiate their products andquickly bringthem to market. Since products are consumed shortly after they are produced, it isimperativeto keep production uptime high at all times. Any stop in production can causeempty shelvesand lost market share. CRITICAL OPERATING RULES IN INDIAN FMCG SECTOR  Heavy launch costs on new products launch on Advertisements, free samples and product promotion.  Majority of the product classes require very low investment in fixed assets.  Existence of contract manufacturing  Marketing assumes a significant place in the brand building process.  Providing good price points is the key to success.
  • Top Ten Players in FMCG Sector NO. Companies 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestlé India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8 Britannia Industries Procter & Gamble Hygiene and 9. Health Care 10. Marico IndustriesCompany Source: www. naukrihub.comScope of the SectorThe Indian FMCG sector with a market size of US$13.1 billion is the fourth largestsector in the economy. A well-established distribution network, intensecompetition between the organized and unorganized segments characterizes thesector. FMCG Sector is expected togrow by over 60% by 2010.That will translate into an annual growth of 10% over a 5-year period. It has beenestimatedthat FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100crores in2010.
  • Market OpportunitiesVast Rural Market----Rural India accounts for more than 700 Million consumers,or 70 percent of the Indian population and accounts for 50 per cent of the totalFMCG market.The working rural population is approximately 400 Millions. An average citizen inruralIndia has less then half of the purchasing power as compare to his urbancounterpart. Stillthere is an untapped market and most of the FMCG Companies are taking differentsteps tocapture rural market share. The market for FMCG products in rural India isestimated 52 percent and is projected to touch 60 per cent within a year. Eg. Hindustan UnileverLtd is thelargest player in the industry and has the widest market coverage.The following factors make India a competitive player in FMCG sector 1. Availability of raw materialsBecause of the diverse agro-climatic conditions in India, there is a large rawmaterial basesuitable for food processing industries. India is the largest producer of livestock,milk,sugarcane, coconut, spices and cashew and is the second largest producer of rice,wheat andfruits &vegetables. India also produces caustic soda and soda ash, which arerequired for theproduction of soaps and detergents. The availability of these raw materials givesIndia thelocation advantage.
  • 2. Labor cost comparisonLow cost labor gives India a competitive advantage. Indias labor cost is amongstthe lowestin the world, after China & Indonesia. Low labor costs give the advantage of lowcost ofproduction. 3. Export - “Leveraging the Cost Advantage”Cheap labor and quality product & services have helped India to represent as a costadvantage over other Countries. Even the Government has offered zero importduty on capital
  • goods and raw material for 100% export oriented units. Multi National Companiesoutsourceits product requirements from its Indian company to have a cost advantage.India is the largest producer of livestock, milk, sugarcane, coconut, spices andcashew apartfrom being the second largest producer of rice, wheat, fruits & vegetables. It adds acostadvantage as well as easily available raw materials.Introduction To The CompanyCargill in IndiaCargill maintains a number of businesses in India, with operations including thehandling andprocessing of a wide range of products, including refined oils, grain and oilseeds,sugar,cotton and animal feed. In addition, Cargill develops flavour systems and operatesa valueinvesting business. Our presence in India has been growing since we began a jointventure operation in 1987 and today it has an access over 1000 towns and 2,50,000retail outlets. Its head office is located at cyber city phase 3 Guargoan ( Haryana).Vision“Our vision is to be the leading player in Indian edible oils market andcreating adistinctive value for all stakeholders”.Mission“We will develop and deliver value added products, which exceedstatutoryrequirements to satisfy our internal and external customers, by creatinga culture of continuous improvement and will establish dominant position inours chosen market, by achieving competitive advantage in all functions andbuilding and retaining a high performing customer-focused team.”Approach“Our approach is to be trustworthy, creative and enterprising”.
  • Measures“Our measures are engaged employees, satisfied customers, enrichedcommunities and profitable growth”.Cargills Guiding PrinciplesIt is not practical to set out detailed guidelines to govern every situation that mightarise in the conduct of our varied and complex global business. Instead, below aretheseven basic Guiding Principles that form the framework in which to examine anyproblem arising in any country.Cargill will comply with the laws of all countries to which it is subject.Cargill will not knowingly assist any third party to violate any law of any country,bycreating false documents or by any other means.Cargill will not pay or receive bribes or participate in any other unethical,fraudulent,or corrupt practice. Cargill will always honor all business obligations that itundertakes with absolute integrity. Cargill will keep its business records in amanner that accurately reflects the true nature of its business transactions. Cargillmanagers and supervisors will be responsible that employees, consultants andcontract workers under their supervision are familiar with applicable laws andcompany policies and comply with them. Further, they will be responsible forpreventing, detecting, and reporting any violations of law of Cargill policies.Cargill employees will not become involved in situations that create a conflict ofinterest between the company and the employee. Every year, all Cargill employeessign an agreement to live these principles.Cargill milestones in India1987: Cargill Seeds - a joint venture operation - commenced in India.1994: Cargill starts its fertilizer/crop nutrients operations in India.1997: Cargill launches its primary sugar and edible oils trading business in India.1998: Commences grain and oil seeds business in India.2001: Launches food business under Cargill Foods – launch of brand ―NatureFresh‖.2003: Cargill acquires the Food Flavors business from Duckworth Group UK, and
  • Duckworth Flavors India becomes part of Cargill India. Cargill sets up green field edible oil refineries at Kandla and Paradip. Cargill launches one stop agri-shops – Saathi Krishi Samadhaan Kendras.2004: Cargill diversifies its fertilizer business into a joint venture with IMC global.Cargill Indias DAP business renamed as Mosaic India.2005: Cargill acquires Parakh Foods with brand "Gemini" and sets up a newBusiness Unit called Cargill Refined Oils India. This is first business unit withheadquarters in India. Cargill launches Saanjhi Unnati Program in Rajasthan for development ofmalt barley Miller. In active collaboration with the Government of Rajasthan and SAB2006: Cargill starts its sugar off shoring business to support the execution activitiesof Cargill Netherlands. Cargill sets up CarVal India Pvt. Ltd. Cargill enters into a joint venture in a project for setting up a green fieldsugar refinery in South India. Cargill entered into tolling arrangements with local Soybean crushers in Maharashtra, Rajasthan and Madhya Pradesh Cargill enters into a joint venture and subsequently owns and leads a shrimp feed manufacturing business in Rajahmundry in Andhra Pradesh.2007: Cargill launches cotton trading business in India.2008: An independently managed subsidiary of Cargill, Black River Advisor IndiaPvt. Ltd., begins operations in India.2010: Cargill acquires leading Vanaspati brand RATH from Agro Tech Foods Ltd.2011: Cargill bought Indian Sunflower oil brand Sweekar. Celebrity chef Sanjeev Kapoor becomes brand ambassador for CargillFinancial highlights
  • In fiscal year 2010, Cargill had $107.9 billion in sales and other revenues. Netearnings were $2.6 billion. Dollars in 2010 2009 Percent Change Millions Sales and other $ 107,882 $ 115,059 -6 revenues Net earnings 2,603 3,334 -22 Cash flow from 4,630 6,679 -31 operationsPresence of Cargill in IndiaOur BehaviourCompanies are not about bricks and mortar. They are about people. Companiesbehave as thepeople within those companies behave. We believe that our success is determinedby thebehavior of our people. Proper behavior results in prompt, accurate, cheerful,courteousservice. Improper behavior-well, companies must do everything they can to avoidit becauseit is all-too-common.We realize that perfection is not achievable, but we think its important for you toknow howthe employees of Cargill, in general, and Cargill Animal Nutrition, in particular,are expectedto behave.Behaviour Themes of Cargills Culture:  Discuss / Decide / Support  Demonstrate Respect, Candor and Commitment  Develop and Leverage Deep Customer Knowledge and Insights  Pursue and Reinforce Collaboration  Ensure & Accept Accountability
  •  Challenge / Innovate / ChangeCultureWhether it is a thank you note or a formal award programme, we appreciate howrecognition shows peers, direct reports, and managers how they fit into our missionand why their contributions are important. Cargill India employees can participatein a range of formal and informal recognition programmes as well as interact withcolleagues and leaders across our many businesses, nationally and internationally.The culture and environment at Cargill is one where employees are motivated andconfident enough to try new things out. They have opportunities to explore newideas and are supported by the management in implementation. As a result,company is in forefront of delivering innovative products to the Indian consumersand implementing innovative and cost effective processes Simplicity,Accountability and Collaborate are the core values that run across the organizationthat bring people together in achieving our business goals and deliver superiorvalue to all our customers.We follow a clear, open and transparent communication that ensures eliminatingambiguity and drive simplicity. We live up to our commitments. We agree ongoals, objectives and strategies. We drive for flawless execution. We dont offerexcuses; we offer solutions and this is the mantra that builds accountability acrossthe organization.We trust and respects each other. We realize that we are muchmore valuable together than we are apart.Everybody has something of value to contribute, and we collaborate and win as ateam. We provide an environment where one person can make a difference.Our employees work in an environment where they have freedom to express,innovate and create breakthrough solutions. Our employees are empowered,energetic and enthusiastic to make a difference with an underlying and allencompassing passion in what they do. Our people use good judgment and aredecisive. They act with speed and always ensure flawless execution.Learning and development opportunitiesAt Cargill we are committed to attracting, retaining and training high performingpeople who embrace the company’s vision and values. The means to achieve this isby maximizing training and development to ensure that employees have thecompetencies required to accomplish their business objectives as well as developtheir career in the company.
  • Training opportunities include on-the-job learning, participating in companyprograms and courses, and attending external programs based on nomination bymanagers and/or peers.Employees also participate in performance management programs to create a roadmap for their individual success at Cargill and alignment with organizational goals.Internal mobilityWe seek to offer employees career opportunities within Cargill India and promotean open environment where employees can acquire new skills and learning. Foremployees who meet the criteria and are willing to accept roles with higherresponsibilities, we provide avenues for growth & movement across Cargillbusinesses and geographies.Equal Employment Opportunity (EEO)Cargill maintains a policy of non-discrimination towards all employees andapplicants for employment. All aspects of employment with Cargill are governedby merit, competence, suitability and qualifications, and will not in any manner beinfluenced by gender, age, race, colour, religion, national origin or disability.Corporate ResponsibilityWhen William Wallace Cargill founded our company in 1865, he deliberately setout to ensure that we earned and maintained a reputation for integrity, which hesaw as a key differentiator in those times. Corporate responsibility is part ofeverything we do. It is a company-wide commitment to apply our globalknowledge and experience to help meet complex economic, environmental andsocial challenges wherever we do business. It is a process of continually improvingour standards, our actions and our processes. Corporate responsibility extends notonly to our own operations but to our widercommunities and is based on four commitments:We will conduct our business with high levels of integrity, accountability andresponsibility.We will develop ways of reducing our environmental impact and help conservenatural resources.We will treat people with dignity and respect. e will invest in and engage with communities where we live and work. WWe recognize our continued success depends on the growth and health of ourcommunities and partners, as well as the vitality and conservation of our natural
  • resources. We are working with a diverse group of global, national and localorganizations to support responsible economic development, help protect theenvironment and improve communities.Corporate responsibility in India and around the worldWe strive to be a good citizen in the areas where we are privileged to conductbusiness. In addition to the benefit of secure employment, we find various ways tosupport local communities. Our Cargill Cares programs bring together ouremployees to serve communities in partnership with external organizationsProducts & Services:Cargill has activities in the following areas in India:• Animal Nutrition• Coal• Cotton• Ferrous• Flavor Systems• Grain & Oilseeds• Refined Oils• Sugar & Sugar Support Centre• Trade & Structured FinanceRefined oil brandsCargill Refined Oils IndiaCargill Refined Oils India imports, refines, sells and markets a wide range ofvegetable oilsand fats to wholesale trade, industrial and household consumers across India. Weown andoperate four vegetable oil refining facilities – three are located on east and westcoast ports ofIndia, the other is located in western India. Refined Oils India markets a range ofrefinedsunflower, soy, palm, olein and ground nut oils, hydrogenated fats and bakeryshortenings
  • under our national brands, Nature Fresh™, Gemini™, Purita™, and other region-specificbrands.Major Refining CapabilitiesOur refineries are unique in technology and refining capabilities and adhere tostringentspecifications for maintenance of product quality, oil stability and food safety. Thequalitiesfound within our operations are unparalleled in India:  Best and latest refining technology, which has been tested and improved across various refinery set-ups within the global Cargill network?  A team trained by international experts and on international platforms run these refining capabilities and is fully equipped to produce the best product in thecountry.  Standards of quality have been set keeping the international and Indian requirements in mind. These standards incorporate the best of both worlds and meet thehighest levels of quality.  Specifications that not just ensure superior quality but also high stability without addition of preservative chemicals. No oil that does not meet thesespecifications is ever packed or shipped.  Hands free treatment with no direct human touch on the product itself due to fully automated refining technology. This has led to a very clean and hygienicenvironment and a b etter and safer product.Cooking oils in IndiaAn oilseed in India account for around 5.0 % of the Gross National Product (GNP)and 14%
  • of the country’s area is under cultivation of crops. Castor, Groundnut, Linseed,Niger,Rapeseed, Mustard, Sunflower etc. are some of the major oilseeds grown. India isone of thelargest producers of oilseeds in the world which accounts for 9.3% of worldoilseedsproduction. This sector occupies an important position in the agricultural economyhavingthe world’s fourth largest edible oil economy and accounting for the estimatedproduction of30.21 million tones of nine cultivated oilseeds during the year 2009-10. Indiaaccounted forabout 6.4% of worlds oil meal export. Yet, about 43% of edible oil available inIndia isimported.Source- Production of oilseeds: Ministry of Agriculture.Types of oils commonly used in IndiaIndia is fortunate in having wide range of oilseeds crops grown in its different agroclimatic zones. Groundnut, mustard/ rapeseed, sesame, safflower, linseed,nigerseed/ castor are the major traditionally cultivated oilseeds. Soyabean andsunflower have also assumed importance in recent years. Coconut is mostimportant amongst the plantation crops. Efforts are being made to grow oil palm inAndhra Pradesh, Karnataka, Tamil Nadu, in addition to Kerala and Andaman &Nicobar Islands. In addition, oilseeds of tree and forest origin, which grow mostlyin tribal inhabited areas, are also a significant source of oils.Consumption pattern of Edible oils in IndiaEdible Oils and Fats is a 15mn tonnes industry in India annually (worth Rs.75,000crore). 90% of the industry is comprised of cooking oil and 10% is vanaspati (fat).The difference between oil and fat is that oil is liquid at room temperature and fatis solid. The total industry is growing at 5-10% p.a. but vanaspati segment ismarginally degrowing. In cooking oils, the growth is coming from branded oils(packaged not loose). This sub-segment is growing at 11-15% p.a.
  • India is a vast country and inhabitants of several of its regions have developedspecific preference for certain oils largely depending upon the oils available in theregion. People in the South and West prefer groundnut oil while those in the Eastand North use mustard/ rapeseed oil. Likewise several pockets in the South have apreference for coconut and sesame oil. Inhabitants of northern plain are basicallyhard fat consumers and therefore, prefer vanaspati, a term used to denote a partiallyhydrogenated edible oil mixture.Vanaspati has an important role in our edible oil economy. Its production is about1.2 million tones annually. It has around 10% share of the edible oil market. It hasthe ability to absorb a heterogeneous variety of oils, which do not generally finddirect marketing opportunities because of consumer’s preference for traditional oilssuch as groundnut oil. Mustard oil, sesame oil etc. For example, newer oils likesoyabean, sunflower, ricebran and cottonseed and oils from oilseeds of tree andforest origin had found their way to the edible pool largely through vanaspati route.The demand for edible oils in India has shown a steady growth at a CAGR of4.43% over the period from 2001 to 2011. The growth has been driven byimprovement in per capita consumption, which in turn is attributable to risingincome levels and living standards. However, the current per capita consumptionlevels of India (at 13.3 Kg/year for 2009-10) are lower than global averages (24kg/year).The Indian edible oils market continues to be underpenetrated and giventhe positive macro and demographic fundamentals it has a favourable demandgrowth outlook over the medium-to-long term.In terms of volumes, palm oil, soyabean oil and mustard oil are the three largestconsumed edible oils in India, with respective shares of 46%, 16% and 14% intotal oil consumption in 2010. Given the high price consciousness and varied tastepreferences of Indian consumers, ICRA expects these three oils to continue toaccount for the bulk of edible oil consumption in the country.Market share of edible oils in India PercentageOilPalm oil 38Peanut 14Sunflower 8
  • Soyabean oil 21Rapeseed 13Cotton 6List of Edible Oil players in IndiaFortune Adani Wilmar Limited.NatureFresh, Cargill India Pvt Ltd, USAGemini,Rath,SweekarDalda Bunge India Pvt.Ltd.,USASaffola, Parachute Marico Ltd, IndiaSundrop Agro Tech Foods Ltd(ConAgra Foods)RR Primo RR Oomerbhoy Pvt.Ltd.Dhara Dhara Company Ltd, NDDB Campus, AnandPanghat Mawana Sugars Ltd.Tilsona Recon Oil Industries Private LtdFigaro Consumer Marketing (India) Pvt. LtdShalimars Classic Shalimar Agro Tech PvtBasmatiPalm Sarda Agro Oil Ltd.Gold ActiveRuchi Gold Ruchi Infrastucture LtdMayur Mayur Ltd KanpurBawarchi Bawarchi KanpurJhoola, Payal Jhunjhunwala , VaranasiIn edible oil The Adani-Wilmer owned Fortune brand was India’s number oneedible oil in 2006 according to A C Neilson Retail Audit 2006. Fortune, which ispresent as a refined soyabean oil, sunflower oil, groundnut oil and mustard oil issaid to have a market share of 19% in the entire edible oil market.Marico Industries have a market share of 11 % with brands like Saffola. Salient features of Indian Oil Sector
  • 1) Demand increasing due to population growth and income increase.2) Domestic production of oilseeds/oils is not adequate to meet the demand3) Lower yield4) Fluctuating production of oilseeds5) Low capacity utilization of processing units6) Obsolete technology/processing inefficiency7) High import dependence about 40%8) Speculative nature of trade
  • Brands At a glance The most exotic olive oil from Spain
  • ProductsAnimal NutritionCargill Animal Nutrition develops and markets a broad range of animal feeds andcustomized animal productivity solutions to commercial producers in 28 countriesacross North and South America, Europe and Asia. 180 plants worldwide supportthe business unit. Animal Nutrition in India serves feed products in thesecategories: dairy, beef, swine, poultry and aquaculture.Cargill Animal Nutrition in IndiaCargill Animal Nutrition started in India through a joint venture with a localshrimp feed company located in Rajahmundry, Andhra Pradesh in February 2006.This was followed by the successful opening of a dairy feed business in Rajpura,Punjab in October of the same year. By March 2007, the Rajahmundry businessbecame a wholly owned subsidiary of Cargill India. Cargill Animal Nutrition -Rajahmundry is a specialized manufacturing facility for aquaculture feeds. Withthe presence of the local brands pre-acquisition, a faster go-to-market strategy wasdeployed,helping to create awareness in the Cargill brand and its feed technologywith the shrimp farmers of South India including the states of Andhra Pradesh,Orissa, West Bengal and Tamil Nadu. Through a series of well-executed roadshows, uptake of the products was rapid. Today, the facility is focusing on its nextfeed offering in the south with Aqua Focus™, a line of fish feeds targeted for thedomestic production of Indian carps such as Rohu, Catla and Mrigal. Five monthtrials of the product is proving to be a hit with local farmers as feed conversionrates (FCR) of 1:5kg of traditional feed has dramatically been reduced to below2kg.Cargill Animal Nutrition - Rajpura started operations by offering dairy feed. Afterseveral in-depth studies of the local dairy cattle scene conducted by Cargill Animal
  • Nutritions dairy technology deployment managers from Italy, Korea and the US,the feed was launched with much enthusiasm in Ludhiana, Punjab. The success inthis segment was brought about by the observation by farmers of higher milkoutput only two weeks from converting their localfeed to Cargill Animal Nutrition.Another breakthrough was the introduction of the Purina® line of poultry feeds.Also very notable was the quick acceptance of the product by broiler farmers inHaryana and Punjab, earning Rajpura the credit of being one of the fastest growingbroiler feed markets within Cargill Animal Nutrition.CottonWe launched our independent and dedicated cotton trading business in December2007. We plan to strengthen our business with our long time suppliers and buildnew market channels to source and supply India cotton.As Cargill Cotton, we are one of the world’s largest and oldest cotton businessesand very proud of our long relationship with India cotton.We are proud to be on the ground in India where cotton trade started. We have anetwork of value chain participants who help us source and supply the best cottoninto and out of the country. From making Indian Shankar 6, Bunny and MECHpreferred choices by mills around the world; to sourcing Extra Long Staple (ELS)and African cotton for Indian mills we have a range of customer solutions.As the world moves forward in liberalizing trade, and India emerges as a dominantcotton country, Cargill Cotton believes we must make a longterm commitment tothe Indian market. We think our experience in total supply chain support can helpIndia become a world-class supplier. Our innovations in finance, logistics, riskmanagement and quality control canimprove profitability for both our cotton suppliers and our textile mill customers.Cargill Cotton has had roots in India since 1851, when the Ralli Brothers wasincorporated with offices in Calcutta and Bombay. Cargill Cotton came intoexistence combining the strengths of the two organizations - Hohenberg (in North,Central and South America) and Ralli (in Africa and the Indian sub-continent).Cargill became recognized as one of the mostmature, respected, and experienced cotton merchants in the world of cotton.In 2002, after over 20 years of operating under both the Hohenberg and Rallinames, the name of the entire cotton operation was changed to Cargill Cotton. Weare very proud of the success and growth that we have shared with our suppliersand buyers over the last 150 years. We are equally pleased to be able to look back
  • at our history and see that the companys tradition has always been one of absoluteintegrity. In todays diverse and multi-culturalworld we know that our unparalleled reputation is our most valuable asset.FerrousCargill participates actively in the import, export and distribution of ferrousproducts and raw materials, covering Asia, the Middle East, Europe, North andSouth America. We export from a broad spectrum of Indian mills and mines—buying the full range of products from more than 40 customers from iron ore tofinished steel. Imports cover finished steel as well as semifinished steel for meetingthe requirements of users. We provide our customers with a wide range of value-added services including port plots and local distribution, logistics andtransportation capabilities, pre-financing, long-term agreements and other logisticsand riskmanagement tools.Flavour systemWe bring a customized and consumer-tested approach to creating advanced flavorsand flavor systems for beverage, dairy, ice cream, confectionery, bakery, foodservice, and pharmaceutical markets. Our India Flavor Systems business has beenoperating since 1991. Our business specializes in liquid flavor, emulsions, spraydried flavors and dry mix powders.Our flavor systems are designed for a broad range of food and related products:bakery and biscuits, beverages, confectionery, dairy and liquor.Grain & OilseedsOur Grain & Oilseed business offers unique solutions around risk management,supply chain, logistics and inventory management to its customers in food in India.We are amongst the largest suppliers of domestic and import food grains to theprivate sector and government of India. For example, we provide identitypreserved food grains to major food companiesand flour millers in the country.We trade and process of a variety of oil seeds like soybean and rapeseed and areone of the largest merchant exporters of oil meal out of the country.The business connects the Indian farmer with markets through a network of Saathicenters that provide farmers with competitive prices and access to reliable grainbuyers.
  • Headquartered in Gurgaon, Grain & Oilseeds has operations in more than 10 stateswhere we manage several facilities that serve markets and customers in thoseregions:· More than 50 grain and oilseed origination and storage locations· Multiple soybean processing facilities spread across the country· Four regional merchandising offices· 12 origination officesOcean TransportationCargill Ocean Transportation has developed over its 50-year history a deepexpertise in chartering, trading, logistics, operations, and risk management.Weoffer our customers a number of ocean freight solutions across all dry marketsegments and tankers. Our focus is on safety, high quality, and risk management.Our aim is to be recognized as the most innovative and customer-oriented partnerin the market.Sugar and Sugar Support CentreBased in Gurgaon, Cargill sugar India is involved in the origination, transporting,storage and exporting of raw sugar. Our team has built up a base of several keysuppliers and customers spread across the key producing states of Uttar Pradesh,Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh. In addition, we havestrong relationships with customers inSrilanka, Pakistan and Bangladesh.Cargill started its Sugar Support Centre as an experiment to support the executionand accounting activities of Cargill BV Netherlands in 2005.Today, the group ishighly successful and a very integral part of the sugar business worldwide. Withinthis group sugar is procured from all originating and surplus countries like Brazil,Thailand, Central America, and Europe and sent to other destinations such asMediterranean countries, West Africa, andthe Far and Middle East.Trade & Structured FinanceCargill Trade & Structured Finance is a financial management arm of Cargill thatsupports the group on their trade and structured financial solutions requirement.The group also extends these services to other small, medium and large corporates
  • in India, sharing their expertise and providing customised solutions for theirworking capital and balance sheetrequirements. The Cargill Trade & Structured Finance group is headquartered inMinneapolis with a team of financial experts across the globe in developed anddeveloping economies.Cargill Trade & Structured Finance started India operations in 1996 and hassuccessfully created a niche quite comparable to a boutique investment banksupporting their corporate clients in their working capital management andsupporting their exponential growth in India and abroad. For better servicedeliverability and bringing in efficiency in the solutions, Cargill started its NonBanking Financial Company in 2007 under the name ofCargill Capitaland Financial Services India Pvt Ltd (CCFSIPL).Cargills structured finance team designs and structures a broad range ofcustomised financing solutions and arrangements both in local and foreigncurrency. The team supports in several credit enhanced solutions, not limited to thefollowing:· Working capital restructuring· Cross border trade advisory services· Short-term and Long-term trade-related financing· Promoter financing· Real estate financing· Securitization· Equipment financeCargill vs. CompetitorsWith growing quality consciousness and plummeting price differences betweenpackaged and non- packaged edible oils, the packaged edible oil sector will capturealmost 50% of the market share within few years. The packaged edible oilconsumption is only about 20% of the total 12.5 million tonne domesticconsumption.Due to advancement of packaging technology, the price difference betweenpackaged and loosely sold oils has significantly come down.Cargill controls more than 12% of the packaged edible oil market. As a result ofthe increase in health consciousness, consumers even in the smaller towns aregradually shifting to packaged edible oils from loosely sold oils.The packaged edible oil industry is growing at 10 % annually and half of themarket would be controlled by packaged oil manufactures within few years.
  • Cargill brands vs. other brandsWith the competition increasing after the arrival of retail companies, maintainingquality while keeping the prices down would be a challenged for all the packagedoil makers.M Cargill India sell around 5,00,000 tons of edible oil a year , including soya ,palm ,sunflower , groundnut and mustard oils besides hydrogenated fats , to wholesaletrade , process food industry and retail customers. Its share is around 4% of themillion tones of total edible oil sold in the country in a year.Other brands like Fortune of Adani wilmer Ltd. Having approximately 19% marketshare in the entire edible oil market. Marico industries with a market share of 11%with brands like Saffola are old players with well known brands in the edible oilindustry hence gives tough competition to Cargill refined oils.Consumer Voice – A monthly magazine of consumer interestA government funded voluntary organization that works towards consumereducation andawareness, conducted a laboratory test on seven well-known brands of refinedsunflower oil.After testing them on all possible parameters like colour, adulteration, rancidityand fattyacid profile, Naturefresh Acti-Lite and Gemini, brands from the house of Cargill,were ratedas the best quality and healthiest refined sunflower oils in the country.For the firsttime in India, refined sunflower oil brands have been tested by an independentgovernment funded organization for their fatty acid profile and other parameterslike colour, rancidity etc. This was done and published in November 2008 toscientifically assess and pinpoint exactly how healthy each refined oil brand is.By this research, NatureFresh and Gemini cooking oils have been proved to be thehealthiestcooking oils in their respective categories.NatureFresh Acti-Lite sunflower oil is extremely light oil that has high-unsaturatedfat content making it easier to break down. This lightness is powered by “LitenessIntegrated
  • Technology” (LITE), which is delivered by the technologically advanced state-ofthe-artplant ensuring that best attributes of the oil are preserved for `consumer’s health.Geminirefined oil offers freshness as a differentiator. It uses “Freshness IntactTechnology” (FIT)which helps maintain the freshness of oil from packaging stage of consumption.SWOT Analysis of Cargill FoodsStrengths:  The quality of our various products is the biggest strength of the company. In terms of quality, every product has maintained its standard quality through which it excels in the market.  Dedicated hard working& highly efficient team is the backbone to the company.  Deeply rooted supply chain. We got effective supply chain to reach even small markets & to target even niches.Weakness:  Our whole range of products is not available across various stores  Late execution of promises made under various schemes & benefiting programs  Less awareness of our product quality & our unique selling point (USP) of 5 litre fat free in a year concept among masses.Opportunity:  Rising oil consumption of people as per gram consumption per person rises from 27 to 38 in developing countries like India.  Majority of our huge population is consuming low quality oil.  As resultant of rising disposable income people are becoming more health & quality consciousThreats:  Low priced or local oils are focusing small regional areas or niches  Competitors are coming up with different categories of oil to capture wider segment of market.OBJECTIVE OF STUDYPrimary Research Project :
  • To assess the edible oil potential of Fragmented Food Service industry inUttarakhand and U.P.West.Secondary Research Project : To study the various competitors in various cities. To understand the consumption pattern of types of oils(refined and non refined) in different cities of Uttarakhand and U.P.West.Research MethodologyA research design is the arrangement of condition for collection and analysis ofdata in a manner that to, combine relevance to research purpose with economy inprocedure.Project Objectives:
  • To Assess the edible oil potential of Fragmented Food Service industry in UP(Lucknow , Kanpur, Allahabad and Varanasi).Storming Exercise: -Mapping of the Fragmented Food Service Outlets in UP(Lucknow , Kanpur, Allahabad and Varanasi). Profiling of each micro segment of FFS. Arriving at a volume potential of different types of edible oils. Refined – Non Refined Sunflower, Soya, Palm oil, Vanaspati, Desi Ghee.Utility of the projectDevising Sales Strategies and Market Strategies for Fragmented Food Servicechannel in UP.Scope & Limitations Of The StudyIt is a hard fact that each study suffer from some limitations. So is the case withthis study. One of the limitations of the study is, as the information is collectedfrom the Fragmented Food Outlets like Halwai, Restaurant, Caterer, Hotel, Bakery,the monthly Consumption figure given by them is based entirely on their ownjudgment. So a few of them might have given the wrong figures related to theirmonthly sales. Another limitation was that some of the retailers were busy andcould not give appropriate information. And also very few retailers did not want toshare any information.Another limitation of the study was the customers who were personallyinterviewed did not want to share the actual data asfew of them were giving fakedataResearch Design:-is conceptual structure within which research is conducted. It constitutes the blueprint of collection, measurement and analysis of data .Research Design is neededbecause it facilitates the smooth sailing of various research operations, therebymaking research as efficient as possible yielding maximum information withminimum time, effort and money. Research Design stands for advance planning of
  • methods to be used for collecting relevant data and techniques to be used in theanalysis .The design helps researcher to organize his ideas whereby it will bepossible for him to look for flaws andinadequacies.Method of data collection: - for collecting data and the accuracy of facts,complete enumeration was used. for collecting the data our team had went to eachFragmented Food Outlets in all the four cities .Data Analysis: - For the data analysis to know the market share of variousSoyabean and Vanaspati brands computer programme called Microsoft Excel wasused, with the help of Microsoft Excel, I came to to know the quantity andpercentage share of each brands . On the basis of the quantity sold per month, Icould collect the market share of each brand.Sample size: - sample size is 1800 Food Service Outlets.Sources of primary and secondary data:The major aim of the project was to analyze the competition in occupyingmarket shares of various soyabean oil brands. Therefore I had to getconsiderable information about the competing brands. For this I had to gothrough a lot of secondary data.A lot of issues of Business Today ,Economic Times were consulted.The reasons behind selecting direct survey were as follows:-  Provide large and faster coverage.  Low cost involved.  One to one interaction with the customer  Data easier to compile and categorize.  Analysis done on the basis of the listed questionQuestionnaireThis method of data collection is quite popular particularly in Case of big enquires.It isbeing adapted by private and public organizations and even by Government. In thismethod aquestionnaire is given to the person concerned to answer the questions. Aquestionnaireconsists of a number of questions printed in a definite order on a form or a set offorms; the
  • respondents have to answer the questions on their own. To be successful thequestionnaireshould be comparatively short and simple.Questions should proceed in logical sequence moving from easy to more difficultquestions.Personal and intimate questions should be left to the end. Technical terms andvagueexpression capable of different interpretation should be avoided in a questionnaire.Questions may be dichotomous (Yes or No answer) multiple choices or openended .Inmaking research carefully chosen questions and their forms working and sequenceisimportant. By considering all the facts the Questionnaire was designed. This is atype ofstructured questionnaire.The questionnaire method offers various advantages such as:-  It is cheaper and faster method of primary data collection.  Since all the questions are formulated in advance all the required information can beobtained in an orderly and systematic manner  It offers maximum control over the interviewing process. EDIBLE OIL CONSUMPTION IN WESTERN UTTARPRADESH AND UTTRAKHAND Total Consumption of Edible oil in 7 cities of UP is 36985 Tins Total Number of Outlet covered is 1230
  • . NUMBER OF OUTLET COVERED IN 7 CITIES Roorkee Rishikesh 92 108 7% 9% Agra Nanital 420 72 34% 6% Mussoorie 74 6% Haridawar 211 17% Dehradun 253 21%ANALYSIS:- COVERED 7 CITIES NAMELY AGRA ,HARIDWAR,RISHIKESH, ROORKEE, DEHRADUN, MUSSORIE, NANITAL. ABOVE PIE CHART DEPICTS THE NUMBER OF OUTLETS COVERED IN ALL THE CITIES RESPECTIVELY CITIES.
  • SALES OF REFINED OIL IN WESTERN U.P & UTTRAKHAND Rishikesh Roorkee 1542 5631 4% 15% Agra 12493 Nanital 34% 1479 4% Mussoorie 1876 5% Haridawar 6103 17% Dehradun 7861 21%ANALYSIS:- ABOVE PIE CHART DEPICTS THE SALES IN ALL THE SEVEN CITIES RESPECTIVELY. IT ALSO SHOW THE PERCENTAGE OF SALES CHUNKS COMING OUT OF RESPECTIVE CITIES
  • AGRA REGION:- SOYA OIL BRANDS USED IN AGRA Chambal 140 123 Fortune NUMBER OF OUTLET 120 100 84 Others 80 84 60 DOUBLE HANS NF 40 BAWARCHI 5 29 20 11 MAHA KOSH 0 4ANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, CHAMBAL, BAWARCHI, NATURE FRESH, MAHAKOSH, DOUBLE HANS AND OTHER BRANDS TOTAL NUMBER OF OUTLET IS 340 CLEARLY THE MARKET LEADER IN AGRA REAGION IN TERMS OF NUMBER OF CUSTOMER IS CHAMBAL WHICH IS A LOCAL BRAND OF AGRA REGION FORTUNE COMES AT SECOND PLACE
  • NUMBER OF OUTLETS USING DIFFERENT TYPE OF EDIBLE OIL IN AGRA REGION OLIEN USER OTHERS USER 54 16 13% 4% VANASPATI USER 10 2% SOYA USER 340 81%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 340 OUTLETS WHICH IS 81 PERCENT OF THE TOTAL NUMBER OF OUTLET. OLIEN COMES ON THE SECOND POSITION WITH 54 OUTLETS, WHICH IS 13 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF EDIBLE OIL IN AGRA REGION OTHERS SALES 335 OLIEN SALES 2% 3215 26% SOYA SALES VANASPATI SALES OLIEN SALES OTHERS SALES VANASPATI SALES 961 SOYA SALES 8% 7982 64%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN AGRA SOYABEAN OIL SALES ARE HIGHEST IN AGRA REGION i.e 7982 TINS WITH A MARKET SHARE OF 64 PERCENT OF THE TOTAL SALES IN AGRA.
  • SALES OF DIFFERENT BRANDS OF SOYA OIL IN AGRA Others 1900 Fortune 24% 2369 MAHA KOSH 30% 126 1% DOUBLE HANS 108 1% NF 615 8% BAWARCHI 549 Chambal 7% 2315 29%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN AGRA REGION FORTUNE IS THE MARKET LEADER WITH SALES OF 2369 TINS AND A MARKET SHARE OF 30 PERCENT. CHAMBAL IS AT THE SECONT PLACE IN TERMS OF SALES.
  • SOYA OIL BRANDS USED IN DEHRADUN 70 61 NUMBER OF OUTLET 60 55 49 50 40 30 20 13 11 8 10 3 2 2 1 0ANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, CHAMBAL, BAWARCHI, NATURE FRESH, MAHAKOSH, DOUBLE HANS, HIMGIRI ,ARTI,ANJANI, AMBUJA &OTHER BRANDS TOTAL NUMBER OF OUTLET IS 205. CLEARLY THE MARKET LEADER IN DEHRADUN REGION IN TERMS OF NUMBER OF CUSTOMER IS FORTUNE. HIMGIRI COMES AT SECOND PLACE
  • OUTLET USING DIFFERENT TYPES OF OIL OLIEN USER 0 OTHERS USER 0% 31 12%VANASPATI USER 17 7% SOYA USER 205 81%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 205 OUTLETS WHICH IS 81 PERCENT OF THE TOTAL NUMBER OF OUTLET. OTHER TYPES OF OIL SUCH AS AMUL BUTTER, HOME MADE GHEE COMES ON THE SECOND POSITION WITH 31 OUTLETS, WHICH IS 12 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF EDIBLE OIL IN OTHERS SALES 1800 DEHRADUN 23%OLIEN SALES 0 0% SOYA SALES VANASPATI SALES OLIEN SALESVANASPATI SALES OTHERS SALES 485 6% SOYA SALES 5576 71%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN DEHRADUN SOYABEAN OIL SALES ARE HIGHEST IN DEHRADUN REGION i.e 5576 TINS WITH A MARKET SHARE OF 71 PERCENT OF THE TOTAL SALES IN AGRA.
  • SALES OF DIFFERENT TYPES OF SOYA OIL IN DEHRADUN AMBUJA Double hans Fortune ANJANI 60 100 1150 ARTI 400 1% 20% 2% 281 7% BAWARCHI 5% 55 1% NF 300 5% MAHA KOSH Himgiri 30 1559 1% 27% DOUBLE HANS 100 2% Others 1641 29%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN AGRA REGION HIMGIRI IS THE MARKET LEADER WITH SALES OF 1559 TINS AND A MARKET SHARE OF 27 PERCENT. FORTUNE IS AT THE SECONT PLACE IN TERMS OF SALES.
  • DIFFERENT TYPES OF OIL USERS IN HARIDWAR OTHERS USER 40 REGION 19% OLIEN USER 0 0%VANASPATI USER 35 SOYA USER 17% 136 64%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 136 OUTLETS WHICH IS 64 PERCENT OF THE TOTAL NUMBER OF OUTLET. VANASPATI COMES ON THE SECOND POSITION WITH 35 OUTLETS, WHICH IS 17 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF OIL IN HARIDWAR OTHERS SALES 1979 REGION 32% SOYA SALES VANASPATI SALES OLIEN SALES OLIEN SALES OTHERS SALES 0 0% VANASPATI SALES SOYA SALES 556 3568 9% 59%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN HARIDWAR REGION SOYABEAN OIL SALES ARE HIGHEST IN AGRA REGION i.e 3568 TINS WITH A MARKET SHARE OF 59 PERCENT OF THE TOTAL SALES IN HARIDWAR.
  • SOYA OIL BRANDS USED IN HARIDWAR NUMBER OF OUTLETS 60 53 50 40 30 30 17 17 20 12 7 10 0 Fortune NF Others Himgiri Soya Double Gold hansANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, NATURE FRESH, HIMGIRI, SOYA GOLD & DOUBLE HANS. TOTAL NUMBER OF OUTLET IS 136 CLEARLY THE MARKET LEADER IN HARIDWAR REGION IN TERMS OF NUMBER OF CUSTOMER IS FORTUNE. DOUBLE HANS COMES AT SECOND PLACE
  • SALES OF DIFFERENT BRANDS OF SOYA OIL IN HARIDWAR Soya Gold 497 Fortune 20% 694 28% Himgiri 261 10% NF Others 554 502 22% 20%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN HARIDWAR REGION FORTUNE IS THE MARKET LEADER WITH SALES OF 694 TINS AND A MARKET SHARE OF 28 PERCENT. NATURE FRESH IS AT THE SECONT PLACE IN TERMS OF SALES.
  • SOYA OIL BRANDS USED IN MUSSOORIE 39 40 NUMBER OF OUTLET 35 30 25 20 20 15 11 8 10 5 0 Fortune NF Others HimgiriANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, NATURE FRESH, HIMGIRI AND OTHER BRANDS TOTAL NUMBER OF OUTLET IS 65 CLEARLY THE MARKET LEADER IN MUSSOORIE REGION IN TERMS OF NUMBER OF CUSTOMER IS HIMGIRI FORTUNE COMES AT SECOND PLACE
  • DIFFERENT TYPES OF OIL USERS IN MUSSOORIE OLIEN USER 0 0% OTHERS USER 0 VANASPATI USER 0% 9 12% SOYA USER 65 88%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 65 OUTLETS WHICH IS 88 PERCENT OF THE TOTAL NUMBER OF OUTLET. VANASPATI OIL COMES ON THE SECOND POSITION WITH 9 OUTLETS, WHICH IS 12 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF OIL IN MUSSOORIE VANASPATI SALES REGION OLIEN SALES 0 OTHERS SALES 245 0% 0 13% 0% SOYA SALES VANASPATI SALES OLIEN SALES OTHERS SALES SOYA SALES 1631 87%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN MUSSOORIE SOYABEAN OIL SALES ARE HIGHEST IN MUSSOORIE REGION i.e 1631 TINS WITH A MARKET SHARE OF 87 PERCENT OF THE TOTAL SALES IN MUSSOORIE.
  • SALES OF DIFFERENT BRANDS OF SOYA OIL IN MUSSOORIE Himgiri Fortune 363 402 19% 21% NF 218 11% Others 929 49%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN MUSSOORIE REGION FORTUNE IS THE MARKET LEADER WITH SALES OF 402 TINS AND A MARKET SHARE OF 21 PERCENT. HIMGIRI IS AT THE SECONT PLACE IN TERMS OF SALES.
  • SOYA OIL BRANDS USERS IN NANITAL REGION 25 20 22 19 20 15 10 9 5 0 Fortune Others Himgiri MANIKANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, HIMGIRI, MANIK AND OTHER BRANDS TOTAL NUMBER OF OUTLET IS 70 THE MARKET LEADER IN NANITAL REGION IN TERMS OF NUMBER OF CUSTOMER IS HIMGIRI WHICH IS A LOCAL BRAND OF NANITAL REGION FORTUNE COMES AT SECOND PLACE
  • DIFFERENT TYPES OF EDIBLE OIL USERS VANASPATI USER 2 3% SOYA USER VANASPATI USER OLIEN USER OTHERS USER SOYA USER 70 97%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 70 OUTLETS WHICH IS 97 PERCENT OF THE TOTAL NUMBER OF OUTLET. VANASPATI COMES ON THE SECOND POSITION WITH 2 OUTLETS, WHICH IS 3 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF OIL IN NANITAL REGION VANASPATI OTHERS SALES SALES 0 11 0% 1% OLIEN SALES 0 0% SOYA SALES VANASPATI SALES OLIEN SALES OTHERS SALES SOYA SALES 1468 99%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN NANITAL SOYABEAN OIL SALES ARE HIGHEST IN MUSSOORIE REGION i.e 1468 TINS WITH A MARKET SHARE OF 99 PERCENT OF THE TOTAL SALES IN NANITAL.
  • SALES OF DIFFERENT BRANDS OF SOYA OIL IN NANITAL MANIK 139 10% Fortune 429 29% Himgiri 432 29% Others 468 32%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN NANITAL REGION FORTUNE & HIMGIRI STAND NECK TO NECK WITH SALES OF 429 TINS AND 432 TINS RESPECTIVELY.
  • DIFFERENT TYPES OF OIL USER IN RISHIKESH REGION OLIEN USER VANASPATI USER 12 0 OTHERS USER 11% 0% 0 0% SOYA USER VANASPATI USER OLIEN USER OTHERS USER SOYA USER 96 89%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 96 OUTLETS WHICH IS 89 PERCENT OF THE TOTAL NUMBER OF OUTLET. VANASPATI COMES ON THE SECOND POSITION WITH 12 OUTLETS, WHICH IS 11 PERCENT OF TOTAL NO OF OUTLETS
  • SALES OF DIFFERENT TYPES OF OIL IN RISHIKESH REGION OTHERS SALES VANASPATI SALES 0 107 0% 7% SOYA SALES VANASPATI SALES OLIEN SALES OTHERS SALES SOYA SALES 1435 93%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN RISHIKESH SOYABEAN OIL SALES ARE HIGHEST IN AGRA REGION i.e 1435 TINS WITH A MARKET SHARE OF 93 PERCENT OF THE TOTAL SALES IN AGRA.
  • SSOYA OIL BRANDS USED IN RISHIKESH 44 45 40 NUMBER OF OUTLETS 35 30 25 25 18 20 15 9 10 5 0 Fortune Others Himgiri Double hansANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE,HIMGIRI, DOUBLE HANS AND OTHER BRANDS TOTAL NUMBER OF OUTLET IS 108 CLEARLY THE MARKET LEADER IN RISHIKESH REGION IN TERMS OF NUMBER OF CUSTOMER IS FORTUNE. DOUBLE HANS COMES AT SECOND PLACE.
  • SALES OF DIFFERENT BRANDS OF SOYA OIL IN RISHIKESH Double hans 134 9% Himgiri 170 12% Fortune 695 49% Others 436 30%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN RISHIKESH REGION FORTUNE IS THE MARKET LEADER WITH SALES OF 695 TINS AND A MARKET SHARE OF 49 PERCENT. HIMGIRI IS AT THE SECONT PLACE IN TERMS OF SALES.
  • OUTLETS USING DIFFERENT TYPES OF OILS IN ROORKEE REGION OLIEN USER 0 OTHERS USER 0% 9 10% VANASPATI USER 3 3% SOYA USER 80 87%ANALYSIS:- ABOVE PIE CHART SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF OIL SUCH AS SOYABEAN OIL,VANASPATI OIL, OLIEN OIL, OTHER USERS. SOYA BEAN OIL IS USED BY MOST OF THE OUTLETS i.e 80 OUTLETS WHICH IS 87 PERCENT OF THE TOTAL NUMBER OF OUTLET.
  • SALES OF DIFFERENT BRAND OF SOYA OIL USED IN ROORKEE Fortune 1281 28% Himgiri 2566 NF 55% 139 3% Others 660 14%ANALYSIS:- ABOVE PIE CHART SHOWS SALES OF DIFFERENT BRANDS OF SOYABEAN OIL IN ROORKEE REGION HIMGIRI IS THE MARKET LEADER WITH SALES OF 2566 TINS AND A MARKET SHARE OF 55 PERCENT. FORTUNE IS AT THE SECONT PLACE WITH THE SALES OF 1281 TINS.
  • SALES OF DIFFERENT TYPES OF OIL USED IN OTHERS SALES ROORKEE REGION 355 6% VANASPATI SALES 630 11% SOYA SALES VANASPATI SALES OLIEN SALES OTHERS SALES SOYA SALES 4646 83%ANALYSIS:- ABOVE PIE CHART SHOWS THE SALES OF DIFFERENT TYPES OF OIL USED IN ROORKEE SOYABEAN OIL SALES ARE HIGHEST IN ROORKEE REGION i.e 4636 TINS WITH A MARKET SHARE OF 83 PERCENT OF THE TOTAL SALES IN ROORKEE.
  • SOYA OIL BRANDS IN ROORKEE 30 28 28 25 NUMBER OF OUTLET 20 20 15 10 5 4 0 Fortune NF Others HimgiriANALYSIS:- BAR GRAPHS SHOWS THE NUMBER OF OUTLETS USING DIFFERENT TYPES OF BRANDS OF SOYABEAN OILS i.e FORTUNE, NATURE FRESH,HIMGIRI AND OTHER BRANDS TOTAL NUMBER OF OUTLET IS 92 CLEARLY THE MARKET LEADER IN ROORKEE REGION IN TERMS OF NUMBER OF CUSTOMER IS HIMGIRI FORTUNE COMES AT SECOND PLACE
  • .Suggestions For Increasing Market Share in FFS Outlets:1)There must be regular surprise visit of higher officials to check the ground realities in themarket.2) There should be separate person in the market whose only job must be merchandising. Hemust make sure the product is visible in the outlet and postors and danglers are properly pastedand attached at a proper place.3) There should be proper feedback for the retailers AS WELL AS customers whenever anyscheme is introduced for the retailers & customers they should be made aware of it. Salesrepresentatives should be given guidelines to intimate each and every retailer of his area aboutthe schemes.4) Being all the companies are ISO 9001 company, it is not good for the reputation company thatit is getting complaints about the products related to quality. More emphasis should be laid onthe quality to avert such circumstances.5) 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 and Fragmented FoodService Outlets are not even aware of our product.6) Whenever any consumer oriented scheme is introduced, the scheme should be directlytargeted to that person who actually uses i.e., Fragmented Food Outlets .9) Non monetary incentives should be also given to the retailers in each and every city. Theyshould be given glow sign boards and other sales promotional materials. This will boost up theirspirits.10) MRP problem during the days of rising prices should be taken care. In this situation ifretailers are getting the products on a price higher than the MRP they can’t sell it more than theMRP. So this problem should be looked after carefully.11)The halwai segment is such,that they do not understand the jargons & quality issues,theywould say that their existing oil is efficient enough for them to make their sweets likeable forcustomers.but regular contact might initiate an impact so that atleast they can try the same oilonce.12) First impression created by the company rep is very important,they should provide suchdeals that brings an interest in the mind of the shopkeeper and he might listen to the wholeconversation with interest..instead of taking it casually..once he gives the order,he should betrappped for ever.
  • 13) The problem of irreguler stocks was founded out.it should be improved as much aspossible.it just takes a single second for a brand switch in the case of oil.14) Its also observed that the shopkeepers are not loyal customers to a particular brand ofoil..they can be easily captured with a good deal only.15) In the hotel segment,the oil consumption is huge,many hotels use Fortune as they are notgetting nature fresh from Dealers .16)We can demonstrate that nature fresh is not costlier than other brand bcoz it consume less oilin frying any stuff and it will give a good texture to the stuff.17) Commission to distributor and retailer should be high than what competitor is giving so thatthey can push more Nature Fresh in the market .18) Product Bundling: To make people aware about other not so popular oil of Nature Fresh ,Gemini.we can do-  Joint bundling – 2 products offered for one bundled price.  Leader bundling – a leader product like Soyabean oil is offered for discount if purchased with a non leader product.  The Company should also introduce new affordable products for lower segment group.
  • LearningManagerial capabilities as we had to manage the salesman who accompanied us as wellas the shop owners.Convincing capabilities.Knowledge of how an FMCG company works at the ground level.How sales can be enhanced.Team management skills.Leadership skills.Analytical approach towards data analysis regarding sales.How to cover an untapped market where complete reach was not there previously.How to carry out the daily operations in rigorous pressure.How to increase product visibility.
  • Limitations Of Project1. Low Print & Media advertisements made us difficult to convince Food Outlets to use/buy our product.2. General awareness of the product and company was low.3. No proper Distribution Channel made company product sell less in market.4. Convincing to the Halwai Segment and other low income Food Outlets was a tough task as they were very less health conscious.5. Excessive dependence on price strategy of competitor market leader in oil segment.
  • CONCLUSIONSThe edible oil industry is significantly based on the satisfaction of consumer regular taste andproduct awareness. These are the products which customer does not change in very short span oftime. People generally using this product rarely experiment on other brand. If a customer is usingnature fresh for a long time they will rarely try for some other oil until and unless there is regularcomplain or some other reasonable problem.So few things regarding oil that should be kept in minda) It takes time to reach up to the tongue of the customer.b) Once reached it takes twice, thrice or more time to change the brandc) It is important for a company to grab customer’s share of mind by increasing awareness of theproduct in the marketQuality wise Nature fresh is very good in the market but its facing tough competition from localplayers so we have to focus on second stage that is making people aware of our productsthrough Advertisements, promotional activity. FMCG being one of the fastest moving industries,company has to create right kind of brand and product awareness, so that people can have theproduct knowledge and choose the product according to their suitability, be competitive in theprices and the quality standards. The company should present the products in such a manner sothat it can motivate the consumers and generate the thirst in consumer to consummate it.Company needs to put little more efforts to spread the awareness of the quality of oil productsand to make customers understand how non-quality oil products can harm a human life. Thecompany can also give some attractive schemes, rebates to the customers from time to time toget an edge on the competitors. Product availability should also be increased in the market byincreasing the number of distributors and an efficient distribution network Market of edible oils in India is captured by various companies and their brand products arewell known across the country. Hence to stand out as a different brand name in the market,Cargill should adopt a good marketing strategy of brand building through various penetrationlevels in the market, increase its product availability and working on the customer relationshipmanagement