Ruchi Soya Industries Ltd is preparing to unleash an array of branded products across categories of edible oil segment in the next five years as country’s leading edible oil firm sees favourable growth potential for the packed oil category on the back of changing consumption patterns.
With a slew of new brands and more variants of existing brands across oil categories such as sun flower, palmolein, soyabean, cotton seed, mustard, groundnut and blended oil segments, the company seeks to increase the market share significantly from the present level of 18 per cent (by volumes).
Branded products accounted for close to one fourth of company’s turnover in 2012-13, up from 21 per cent in the previous year.
“In tune with the changing consumption patters, Ruchi Soya will come out with a range of brands in various categories,” said Satendra Aggarwal, Chief Operating Officer, Ruchi Soya Industries Ltd.
The Rs.26,499 crore company’s brand journey has started with sunflower oil segment and it has re-launched Sunrich, the company’s only sunflower oil brand, in a refreshed pack with different value proposition.
Ruchi Soya seeks to boost this business in south India initially as the region accounts for over 70 per cent (at four lakh tonnes) of packed sun flower oil market (5.6 lakh tonnes) in the country. Tamil Nadu is the biggest market, followed by Karnataka and Andhra Pradesh.
Penetration of organised retail into smaller towns, increasing urbanisation, changing customer preferences towards health aspects, among others are reported to be driving growth in the packed edible oil segment.
In the past five years, growth of edible oil in packed form far exceeded the industry rate.
It is expected that overall quantum of edible oil consumption will continue to grow significantly in the packed segment, with the pattern of consumption shifting from unpacked to packed form, across different layers of positioning from mass to premium markets.