Edible Oil Case Study

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Introduction The Indian edible oil market is the fourth largest in the world accounting for around 9 percent of the world’s seed production. The domestic edible oil industry is a low margin, high turnover industry estimated to be at INR 80000 crore. The rising demand of edible oils in the country is supported by both domestic production and imports. The industry has a large number of players both in the organized and unorganized sectors which lead the industry to being fragmented. While there are around 20 big branded players such as Ruchi Soya, Adani Wilmar and Cargill India, there are about 200 small and medium regional players which operate in the market. Industry Trends The consumption of edible oil has increased over the years owing to rise in overall household income, surge in the retailing business, increasing awareness about health disadvantages of other sources of fat, and growing population overall. But at the same time, the per capita consumption of oils and fats is said to much lower than that of the developed countries. Though the share of branded and packaged product sales has been relatively low at about 10 percent approximately, there has been an observed shift towards the branded oils.…show more content…
The typical taste of different kinds of oil which reflects in the regional cuisines has been an important aspect. While groundnut oil and coconut oil are widely preferred in Southern and western part of India, mustard seed/rapeseed oil are popular in Eastern India. Vanaspati ghee is widely used across Northern regions of the country. With technological developments, processed oil variants have become odourless and tasteless and are becoming interchangeable in the kitchen. The evolving preferences towards healthier variants is seeing the rising popularity of soya bean oil, rice bran oil, olive oil

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