1. A
PROJECT REPORT ON
“MARKET SHARE OF THE RUCHI SOYA PRODUCTS IN INDORE”
Submitted To:
INDORE INDIRA BUSINESS SCHOOL & RUCHI SOYA INDUSTRIES
LIMITED
In partial fulfill of the requirement for the award of the degree of
POST GRADUGATE DIPLOMA IN MANAGEMENT
IN
MARKETING
Submitted By:
Deepshikha Lodha
Management Trainee from
Indore Indira Business School
Under the guidance of:
Amit Pyasi Sir
Assistant Marketing Department
(Ruchi Soya Industries Limited)
2. DECLARATION
I Deepshikha Lodha, hereby declare that project titled “MARKET
SHARE OF THE RUCHI SOYA PRODUCTS IN INDORE” is an
original peace of research work carried out by me, under the guidance
and supervision of Mr. Amit pyasi sir, (Assistant Marketing
department, Ruchi Soya).
The information has been collected from genuine & authentic sources.
The work has been submitted in partial fulfillment of the award for
degree of post graduate diploma in management discipline of IIBS
and is authentic record of our own work.
I hereby declare that above statement is correct to the best of my
knowledge.
Date: August 1, 2015
Name: Deepshikha Lodha
Place: Indore
Company: Ruchi Soya Industries Limited
3. CERTIFICATE
This is to certify that the project entitled “MARKET SHARE OF
THE RUCHI SOYA PRODUCTS IN INDORE” being submitted
by Deepshikha Lodha in partial fulfillment of the requirements for
the award of the degree of the post graduate diploma in management
discipline of IIBS is a record of bonafide work done by her under my
guidance and supervision.
Mr. Amit Pyasi
Assistant Marketing department
Ruchi Soya Industries Limited
4. ACKNOWLEDGMENT
Internship project is a golden opportunity for learning and self
development. I consider myself very lucky and honored to have so
many wonderful people guiding me in completion of this project.
I wish to express my indebted gratitude and special thanks to Mr.
Amit Pyasi sir, Assistant Marketing Department (Ruchi Soya Industry
Limited) who, in spite of being extraordinarily busy with his duties,
took out time to hear, guide and keep me on the correct path and
allowing me to carry out my Industrial project work at their esteemed
organization and extending during the training. I don’t know where I
would been without him.
I express my humble thanks & deepest sense of gratitude to Mr. Amit
Mishra sir and Mr. Lalit sir for their judicious and precious guidance
which were extremely valuable for study both theoretically and
practically.
Finally, I would like to thank to all sales representatives of ruchi
industries(satish sharma sir,goyal sir & shinde sir), who were with us
on field every time and helped to complete this work successfully.
5. INDEX
I. Introduction
II. Company Origin & Overview
III. Manufacturing Process
IV. Brands & Flavors of RSIL
V. Plant locations
VI. Distribution channel
VII. Sales process
VIII. Market analysis & share of ruchi products in Indore
IX. SWOT Analysis
X. Conclusion
XI. Suggestions & Recommendations
XII. Bibliography
6. Introduction
The objective of this market research & study is to determine the
customer as well as retailers preferences regarding different soyabean
oil brands, which results in computation of the market share of ruchi
soya’s product. The main objective was to find out the market share
of the Ruchi products in Indore market. I was given the new Indore
area, sales of which was under the vijayvargiya distributor. I met to
around 235 retailers in 20 days to take the information related to the
topic.
It involves the study of the consumers’ buying behavior and attitudes
towards a variety of attributes and factors, which help them in
decision-making.
As ruchi soya mainly focuses on soyabean oil, I took brands of
soyabean refined oils as the main focus of my research. Mahakosh is
the premium segment brand of the company & study shows that most
of the people in Indore city prefer mahakosh soya oil covering a
strong market share of 70% .
Other than mahakosh, I have taken the ruchi’s two more brands i.e.
ruchi star & tulsi gold, then I have also taken competitor brands
swaadist, fortune, kriti & others. Others brands include all the
remaining brands like sachamoti, madhuri, zayka, kash, avi,
prakash,etc.as well as local brands.
Secondary data from various sources like magazines, a journals,
websites etc has also been taken. But at the end, the research was
limited due to small sample size & area and time constraints.
7. Company Origin & Overview
Ruchi Group of Industries is a well-known Indian conglomerate with business
interests in diverse field like FMCG, Oils, Steel, Cement, Power, Real Estate,
Dairy Products, Agro Commodities, Logistics and Warehousing. The group has
its corporateheadquarters in Indore, with offices and plants located at major
business centers in the country.
Shri Mahadevji Shahra laid its foundation 60 years back. The vision was to
facilitate the farmers to grow and prosper. Soyabean was a new crop with
promising future and an awareness drive was undertaken by Honorable
Chairman Shri Kailashji Shahra which turned boonfor the farmers in Madhaya
Pradesh. Apart from the Soyabean Revolution , Ruchi Group diversified into
steel, alloys, power generation, infrastructure and real estate, agro business,
commodities, warehousing, logistics services and renewable energy
8. Ruchi Group today is the largest food and steel conglomerate of Central India
with the turnover of $ 6 billion. It is the largest importer and exporter of Soya
products in Asia, also having largest share in secondaryflat steel market.
RUCHI SOYA INDUSTRIES LIMITED
Featuring among the top five FMCG players in India, Ruchi Soya Industries
Limited (Ruchi Soya) is a leading manufacturer and India’s largest marketer of
healthier edible oils,
soya food,
premium table spread,
vanaspati and
bakery fats.
It is also the highest exporter of soya meal, lecithin and other food
ingredients from India. Established in 1986, Ruchi Soya has emerged as an
integrated player, from farm to fork with secured access to oil palm plantations
in India and other key regions of the world. Ruchi soya has access with
exclusive oil procurement rights to over two lakh hectares of land in India with
a potential of oil palm cultivation.
The Company has focused on continuous expansion across business verticals to
consolidate and sustain its industry leadership. Over the years the Ruchi group
has metamorphosed from a trader to a manufacturer & marketer and Ruchi Soya
is now a company with a strong portfolio of brands viz. Nutrela, Mahakosh,
Sunrich, Ruchi Gold & Ruchi No.1. With a turnover of over US$ 5 Billion,
Ruchi Soya Industries Limited is listed on Bombay Stock Exchange Limited
(BSE Code: 500368) and National Stock Exchange of India Limited (NSE
Code: RUCHISOYA). Social initiatives of Ruchi Soya with a focus on
healthcare, education and women’s empowerment, help in creating sustainable
value for society as well as the organisation. Ruchi Soya is committed to
renewable energy and exploring suitable opportunities in the sector.
In early 1960s Mr. Mahadeo Shahra created awareness on the potential of
soya crop amongst the farmers in the state of Madhya Pradesh in India. He was
instrumental in bringing up a small green revolution in the state, by introducing
and encouraging Soyabean cultivation on a commercial scale. Shahra family
9. was in the business of commodities trading and subsequently entered the
business of ginning and oil milling. The family's efforts, along with that of the
others, resulted in soya revolution in Madhya Pradesh. Today Madhya Pradesh
is consideredas Soya bowl of the country.
India has emergedas the fifth largestproducer of Soyabeanin the World.
10. RSIL MANAGEMENT:
NAME DESIGNATION
Anil Singhal
Dinesh Shahra
Dinesh Shahra
Kailash Shahra
Meera Dinesh Rajda
N Murugan
Navin Khandelwal
Prabhu Dayal Dwivedi
R L Gupta
R L Gupta
Sajeve Deora
Vijay Kumar Jain
General Manager - Corp. Accounts
CEO
Managing Director
Chairman
Additional Director
Director
Director
Director
Co. Secretary & Compl. Officer
Secretary
Director
Director – Commercial
11. Manufacturing Process
There is a proper step by step process to extract oil from the soyabean seeds.
Firstly the seeds are stored into saylo through a conveyor. The capacity of one
saylo is 45000 metric tons. Then it goes for air cleaning then water pressure is
given to it because of which the seeds bulge. After this,crushing sessionis done,
then the product(full fat flakes) goes for oil extraction, which gives 3 products:
1. soyabean oil
2. soya meal i.e. DOC (de oil cake)
3. textured soya protein i.e. soya chunks(badi)
13. BRANDS OF RUCHI SOYA
1. Soyabean oil
a. Mahakosh (Premium segment)
b. Ruchi star (Middle segment)
c. Tulsi gold (lower segment)
2 Palm oil
a. Ruchi gold
15. c. Ruchi gold
5 Groundnut oil
a. Mahakosh
6 Cotton seed oil
a. Mahakosh
7 Rice bran oil
a. Mahakosh
16. 8 Coconut oil
a. Mahakosh
9 Vanaspati
a. Mahakosh
b. Ruchi No. 1
10 Bakery
a. Bake fat for Biscuits
b. Bake fat for puff products
c. General Bakery
(Avanti & Tulsi general bakery are cheap segment under this)
20. Sales process
In this sales process, there is a 15 day bargain period where two bargain
conditions are there;
1. X-condition: here distributor is liable for transportation.
2. Y-condition: company is liable to deliver the goods to the doors of
retailers. This is also known as Freight On Road.
Price is decided on the daily basis from international market i.e. Chicago,
which starts from 8:00pm & end at 6:00am.
Some facts about RSIL
No. 1 Exporter of soya meal extractions
Ruchi Gold is India’s largest selling single oil consumer brand
6 lakh+ Retail stores across India
2 lakh+ hectares Land access in India for palm oil plantations with exclusive procurement
rights across six states
Madhuri dixit is appointed as a brand ambassadorfor mahakosh.
21.
22. Market analysis & Share Of Ruchi Product In
Indore
The graph below, shows market share of mahakosh, ruchi star, tulsi gold,
swaadist, fortune, kriti & other brands ratio in Indore(new) market as a whole.
It shows that Ruchi Soya is strong in the edible oil in indore. Sales of ruchi
soya’s premium segment brand i.e. mahakosh is having highest share of 70% in
Indore market in comparision of other brands. And the second competitor is
swaadist with 8% of market share.
Mahakosh Soya
Ratio
70%
Ruchi Star
5%
Tulsi Gold
2%
Dammani
Swaadist Ratio
8%
Fortune Ratio
5%
Kriti
3%
Others
7%
Market share of Indore market
23. After this analysis of market share of ruchi’s product in overall market studied, I
have divided all the areas covered by me in 4 areas head to do area wise
analysis of share of brands contributing to the company.
And the ratio of different brands in different area are shown below in the
graphical form(pie chart).
Kanadia road
Pipliyahana
Bengali square
Musakhedi
Tilak nagar
Kanadia road
Khandwa road
Regional park
Bhawar kuan
Khandwa road
Subhash nagar
Pardeshipura
Patnipura
Nandanagar
Malwa mill
Vijaynagar
Manglia
Talawali chanda
Dewas naka
MR10
Marimata
Luv kush square
Sheetal nagar
Vijaynagar
24. Kanadia road have 74% of consumption of mahakosh brand oil but the
consumption of ruchi star is only by 1% & tulsi gold is 0% in this area.
Here the second competitor is swaadist brand of dammani with sales of 9%
market share.
mahakosh soya
ratio
74%
ruchi star
1%
tulsi gold
0%
fortune ratio
5%
kriti
6%
swaadistratio
9%
others
5%
kanadia road
25. Khandwa road have 71% of sales of mahakosh brand oil & the consumption of
ruchi star is by 2% while tulsi gold is the second largest consuming oil of this
area with 9% of market share.
Here the swaadist is at third position with 5% of market share.
mahakosh soya
ratio
71%
ruchi star
2%
tulsi gold
9%
fortune ratio
3%
kriti
6%
swaadistratio
5%
others
4%
khandwa road
26. Subhash nagar have 70% of consumption of mahakosh brand oil & the
consumption of ruchi star , tulsi gold & fortune is having an equal share with
4% in this area.
Here the second competitor is again swaadist brand of dammani with a strong
sales of 9% market share.
mahakosh soya ratio
70%
ruchi star
4%
tulsi gold
4%
fortune ratio
4%
kriti
1%
swaadistratio
12%
others
5%
subhash nagar
27. Vijaynagar have 74% of share of consumption of mahakosh brand oil & the
consumption of tulsi gold is by 2% of people in this area.
The second most selling brand consist of dammani as well as ruchi star with
7%.
Other brands are also doing well in this area by contributing with a 9 % of share
in vijaynagar.
mahakosh soya ratio
66%
ruchi star
7%
tulsi gold
2%
fortune ratio
6%
kriti
3%
swaadistratio
7%
others
9%
vijaynagar
28. SWOT Analysis
Strength
1. Emphasis on superior
procurement, trading skills and tough
quality control standards
2. Continuous innovation and an effort by
the industry to meet consumer needs
3. Largest player in India in edible oil
category
4. Wide and extensive distribution network
of 6,30,000 retail stores
5. Over 5 Lac retail stores, 90 Company
depots, 2000 distributors and a sales
personnel of 200
6. First exporter of Soyabean meal to south
east Asia and middle east markets
7. Crushing capacity of about 4 million tons
annually in 14 plants, extend over 11
locations
Opportunity
1. Strengthening industry
portfolio with other
healthy additions
2. Control price
fluctuations
3. Expansion into premium
segments and global
markets
4. Tie- up with restaurants
and hotel chains
29. Weakness
1. No control on raw material prices as
product is agro based
2. Despite high quality product and good
distribution, limited brand awareness
compared to some other brands
Threats
1. Food regulation by
Government
2. Regulation and control
by other authorities like
NGO’s
3. Change in policy of
edible oil by the
Government.
4. Competition is
increasing day by day as
many new brands come in
the market
30. Conclusion
After the analysis of the market of Indore, on the basis of the sample studied,
the conclusion drawn is that Ruchi Soya is the leading company in the edible oil
in the city. Mahakosh oil is the leading brand of the Ruchi Soya which covers
the 70% of market in Indore. Consumers prefer the Mahakosh oil more, rather
than the other brands. It is having a strong brand image & people preferring
mahakosh never like to consume any other brand. Mahakosh oil is available in
almost every outlets visited. The extensive distribution network, built over the
years, is a major strength for Ruchi Soya Industries Limited. As the distribution
channel is very strong sales is done automatically. With its emphasis on
providing value goods to consumers, dual strategy of Ruchi on popular and
premium range works well. Company is maintaining a good customer
relationship by providing value to the customers. Brand Mahakosh stands for
natural goodness and health which means they are trying to do benefit
positioning. This is a very plus point that right positioning is done without any
confusion or doubt & is delivered as well. With kaizens & innovations company
is giving the value for money to the customers. Besides all these there are few
retailers who are not happy with the margin they get as there is a price
fluctuation in modern trade & local trade. Still the sales is increasing because of
customer’s demand & brand loyalty.
Hence it is concluded that company is doing well in the market and should
continue doing value addition to the products to remain at the top forever.
31. Now, if we see the overall sales of Ruchi Soya Industries Limited of last 5 years
we get the following result:
This shows that there is a fluctuation in the sales of ruchi soya industries limited
from last 2 years i.e. from 2012-13. So now it’s a high time to do some
innovation in the products ofthe RSIL.
Although mahakosh in the soya oil segment is doing well in the market but it’s
important to create awareness about the other products ofthe company.
All the internal factors are also doing well. There are lots of opportunities
available in market, which company can grab & increase its sales in all the
products.
12,172
13,530
16,763
26,224
26,485
24,601
0
5,000
10,000
15,000
20,000
25,000
30,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
sales growth
Rs. in Crores
32. Suggestions & Recommendations
Many new competitors are entering in the market to make the competition
tough, so it’s better to defeat them there itself by promoting the brand more &
more & creating the clear image of our products in customer mind. This can be
done by giving some schemes to retailers as well as distributors. And they
should be communicated properly about it.
The brand loyalty created by the company from so many years can also be taken
advantage of so that consumers will trust on company & will prefer to use all
the other products of the company and should also serve much better than the
customer’s expectation.
And I would also like to suggest to the company to change the packaging style
of the mahakosh brand 1 liter oil pouch. They can put a cap into the pouch
which would make it easy for customers to use it after using the required oil
they can repack the un-used oil in the same packet rather than storing it in some
other container. And the innovated & attractive pack will invite more customers.
