Edible Oil Industry Pakistan

REPORT

OF

BUSINESS POLICY

ON

EDIBLE OIL INDUSTRY

TABLE OF CONTENTS

Acknowledgement: 4

Edible Oil Industry: 5

History: 5

INDUSTRY SEGMENTS 5 Edible Oil industry and Pakistan Economy: 6

LIST OF ALL PLAYERS: 8

INDUSTRY PALYERS 8 Market Share: 9

Profile of Three main players: 11

Wazir Ali (TULLO) 11 SUFI 12 Habib Oil Mills 13

PRODUCTS 13

1. Super Habib 13

Opportunity: 14

⎫ Untapped rural Market 14 ⎫ Possibilities in the export market. 14 ⎫ People are becoming more health consciousness. 14 ⎫ Upcoming project of Palm Oil refinery. 15

Threats 15

⎫ Increased cost of production especially because of inputs like energy. 15 ⎫ Heavy reliance on imports may give rise to exchange rate risk. 15 ⎫ Black Market is increasing with phenomenal rate. 16 ⎫ Reduction in the purchasing power of people due to inflation. 16

ISSUES 17

⎫ Imports of raw material increasing by 9% per annum. 17 ⎫ Price difference between branded and non-branded segments. 18 ⎫ Huge gap between consumption and production. 19

Possibility for New comers: 20

Michael Porter’s Model – The five competitive forces of industry 20 Strengths 21 Weakness 21

STRATEGY FOR NEW PLAYER: 22

Steps of Segmentation for US (NEW PLAYER) in the Industry: 22

Impact of WTO and opening of boarder with India 23

Salient Features of WTO Agreement 23 Consequences: 24

Future of the Industry: 26

SUPPLY CHAIN OF THE INDUSTRY: 29

1. Procurement 29 Issues: 29 2. Manufacturing 29 Issues: 29 3. Distribution: 30 MARKET STRUCTURE OF EDIBLE OIL INDUSTRY 30 Issues: 31 4. Marketing 31 Issues: 31

HR availability and other issues: 32

Key factors from HR perspective in the industry: 32 Issues: 32 Un-trained staff: 32 Strikes and improper shutdowns: 33 High turnover 33 No proper use of Information technology: 33 Government challenges: 33