Research Document on Indian Edible Oil Industry
Adani Wilmar’s Fortune Cooking Oil Market Share & Size
Present Market Cap: £316.92m
Shares Issued: 2,587.11m
Volume: 756,093
Market Share: 22%
Marico Saffola Market Share & Size
Market Cap: 63 billion out of 154.5 bill Volume: 5,833 out of 67,556 Market Share: 34%
Has cut prices by 3-6% to plug the huge price differential with other refined oils. launched unblended Fortune Rice Bran Health oil.
Marico filed applications against Adani Wilmar in the High Court for disparaging its products. However, the applications were finally dismissed due to lack of substantial proof.
Marico has been battling slowdown pressures in the Saffola franchise since the December 2012 quarter.
Adani Wilmar claiming it contains much higher quantity of oryzanol as compared to Saffola Gold but is still cheaper than the latter. This claim was made on the basis of Adani Wilmar's contention that Saffola Gold has altered its original blend of 70 per cent rice bran oil and 30 per cent safflower oil to 80 per cent rice bran oil and 20 per cent safflower oil.
Rising competitive pressures
The edible oil industry suffers from poor margins. Marico has overcome this drawback by building the premium Saffola brand on the health plank.
However, the recent slowdown in discretionary spending has adversely impacted sales.
Additionally, increased competition has further exerted pressure on the Saffola brand.
The company has taken pricing action and expects double-digit growth in sales in FY14.
Ruchi Soya Ltd.’s Sunrich
Market Cap: 126 billion out of 180 billion Volume: 92,601.6 out of 132,688
Market Share: 10%
The company has set a target of increasing its presence in the market and have a 10 per cent share of the sunflower oil segment by next year. Satendra Aggarwal, COO, Ruchi Soya Industries has said that the company has been offering healthy edible oil during the previous three decades and with the
Present Market Cap: £316.92m
Shares Issued: 2,587.11m
Volume: 756,093
Market Share: 22%
Marico Saffola Market Share & Size
Market Cap: 63 billion out of 154.5 bill Volume: 5,833 out of 67,556 Market Share: 34%
Has cut prices by 3-6% to plug the huge price differential with other refined oils. launched unblended Fortune Rice Bran Health oil.
Marico filed applications against Adani Wilmar in the High Court for disparaging its products. However, the applications were finally dismissed due to lack of substantial proof.
Marico has been battling slowdown pressures in the Saffola franchise since the December 2012 quarter.
Adani Wilmar claiming it contains much higher quantity of oryzanol as compared to Saffola Gold but is still cheaper than the latter. This claim was made on the basis of Adani Wilmar's contention that Saffola Gold has altered its original blend of 70 per cent rice bran oil and 30 per cent safflower oil to 80 per cent rice bran oil and 20 per cent safflower oil.
Rising competitive pressures
The edible oil industry suffers from poor margins. Marico has overcome this drawback by building the premium Saffola brand on the health plank.
However, the recent slowdown in discretionary spending has adversely impacted sales.
Additionally, increased competition has further exerted pressure on the Saffola brand.
The company has taken pricing action and expects double-digit growth in sales in FY14.
Ruchi Soya Ltd.’s Sunrich
Market Cap: 126 billion out of 180 billion Volume: 92,601.6 out of 132,688
Market Share: 10%
The company has set a target of increasing its presence in the market and have a 10 per cent share of the sunflower oil segment by next year. Satendra Aggarwal, COO, Ruchi Soya Industries has said that the company has been offering healthy edible oil during the previous three decades and with the