TO WHOMSOEVER IT MAY CONCERN

This is to certify that the Summer Project Study Report, Titled Study of
Consumer Buying Behaviour and Analysis of Mustard Oil market submitted by
Mr Arpit Ojha as partial fulfilment of requirement of the two year PGDM (2016-
2018) is a bonafide work carried out by the student at our Institute.

This Summer Project Study is his original work and has not been submitted to any
other Institute.

Prof. Maneesh Yadav Prof. Raj Kumar Ojha

Project Supervisor Program Director- PGDM

Date:

Place: Lucknow
 DECLARATION BY THE STUDENT

I, Arpit Ojha student of PGDM batch (2016-2018) declare that the project entitled
Study of Consumer Buying Behaviour and Analysis of Mustard Oil market, is
my own work conducted under the supervision of My mentor Mr. Maneesh Yadav
as a partial fulfilment of Summer Internship Program for the course of PGDM
submitted to Mr. Rohit Ranjan (Adani Wilmar) and Jaipuria Institute of
Management, Lucknow

I further declare that to the best of my knowledge the project does not contain
any part of any work which has been submitted for any other project either in this
institute or in any other without proper citation.

Place:
Date: Signature of the Candidate
 Acknowledgement

All successful work needs large number of hands to accomplish any work. I
acquire this opportunity with much pleasure to thank all people who have helped
me through the course of my journey towards this project. I sincerely thank Mr.
Rohit Ranjan (ASM- Adani Wilmar Lucknow) for providing me an opportunity to
undergo such a beneficial project in the organization. Sincere thanks to TSI
(territory sales inspector) and all the sales persons who all helped me to complete
my survey. I would like to thank my mentor; Prof. Maneesh Yadav for his caring
and supportive attitude gives me to of support in doing my project. Finally, this
project would not have been possible without the confidence, endurance and
support of my family. My family has always been a source of inspiration and
encouragement. I wish to thank my family, whose love, teachings and support
have brought me this far.

Arpit Ojha

JL16PGDM038
 Executive Summary
Indian Food industry has high growth potential and food is related to necessary of any countrys
citizen. Food is something which is substantially differentiates from India from the western
countries and India is poised to become a health conscious country In which the ingredients of
the key thing which people would look at before enjoying the utility of food. The food oil
industry is thereby set to produce health conscious oils which will eliminate the use of non-
healthy oils. The Indian food and grocery market is the worlds sixth largest, with retail
contribution 70 per cent of the sales. It is projected to grow at the rate of 104 per cent,
touching US$ 482 billion by 2020

The summer internship that was conducted belonged to a part of food industry. I.e., Fortune
brand of the Adani Wilmar group in Lucknow area. The project topic is Study of Consumer
Buying Behaviour and Analysis of Mustard Oil market. For this purpose, I developed a
questionnaire which recorded answers of consumers willing to buy edible oils. I had collected
data of over 60 customers in various regions of Lucknow area. Also I paid visit to retailers and
wholesalers in business of trading mustard oil to collect their insights about mustard oil market
and consumer needs and expectations. Also Ive done category wise analysis of Adani Wilmars
product with other companies to find out the challenges and opportunities for the company to
fine tune its marketing and business strategy.

For the purpose of conducting survey, I visited several areas of Lucknow like Husainabad, Gomti Nagar,
Sadar Bazar Market, Narpat Khera, Indralok, Chinhat, Aminabad, Puraniya and various other places.

Through this process of visiting places, conducting survey and analysing the data collected the findings
were:-

High market share of Fortune KGMO

Fortune Mustard oil is facing stiff challenge with Bail Kolhu and company needs to
improvise on its taste and price to compete with bail Kolhu.
Strong brand equity of Adani Wilmar between customers can be leveraged to increase
sales of other Adani Wilmar products also.
Though distribution capabilities of Adani Wilmar are very strong but there is need to
improvise on certain glitches in operations.
 Table of Contents
Chapter 1 INTRODUCTION ............................................................................................................................ 9
1.1 Problem Statement ..................................................................................................................... 10
1.2 Rationale of the Problem ............................................................................................................ 10
1.4 Methodology ..................................................................................................................................... 11
1.5 Scope of the Study ............................................................................................................................ 12
1.6 Limitations of the Study .................................................................................................................... 12
Chapter 2 DETAILS OF THE ORGANIZATION ............................................................................................... 13
2.1 Introduction ...................................................................................................................................... 14
2.2 The Organization ............................................................................................................................... 17
2.2.1 Products / Services and Processes/ Facilities ................................................................................ 18
2.2.2 Organization Structure ................................................................................................................... 28
2.2.3 HR Practices ................................................................................................................................... 29
2.2.4 Competition Analysis ..................................................................................................................... 30
2.2.5 Industry Analysis ............................................................................................................................ 37
2.3 Organization Business Profile ........................................................................................................... 41
2.5 SWOT Analysis of Company .............................................................................................................. 42
2.6 Michael Porters Five Forces Model- Industry Analysis .................................................................... 43
2.7 Impact of GST on Sector.................................................................................................................... 45
Chapter 3 RELEVANT LITERATURE REVIEW................................................................................................. 46
3.1 Introduction ...................................................................................................................................... 47
3.2 Review of Relevant Literature quoting the sources of each ............................................................. 48
Chapter 4 DATA COLLECTION AND ANALYSIS ............................................................................................. 49
4.1 Sampling Frame ................................................................................................................................ 50
4.2 Data Collection Method .................................................................................................................... 50
4.3 Sources of Data Collection ................................................................................................................ 51
4.4 Presentation and Processing of the Data for Analysis ...................................................................... 52
................................................................................................................................................................ 52
Chapter 5 DATA ANALYSIS AND INTERPRETATION ..................................................................................... 53
5.1 Choice of Data Analysis Techniques.................................................................................................. 54
5.2 Outcomes and Interpretation of Outcomes ..................................................................................... 55
Chapter 6 RECOMMENDATIONS ................................................................................................................. 72
6.1 Brief Description of Recommendations ............................................................................................ 73
6.2 Details of Each Recommendation, Discussion of Its Technical Suitability, Economic Justification and
Feasibility of Implementation. ................................................................................................................ 75
6.4 Conclusion ......................................................................................................................................... 75
Chapter 7 CONCLUDING REMARKS............................................................................................................. 76
7.1 Summary ........................................................................................................................................... 77
7.2 Gains from the Project ...................................................................................................................... 77
7.3 Limitations of the Project.................................................................................................................. 78
7.4 Scope for Further Work .................................................................................................................... 78
7.5 Conclusion ......................................................................................................................................... 78
11. References ............................................................................................................................................ 79
12. Appendices........................................................................................................................................ 80
 Table Of figure
Figure 1 ....................................................................................................................................................... 19
Figure 2 ....................................................................................................................................................... 20
Figure 3 ....................................................................................................................................................... 21
Figure 4 ....................................................................................................................................................... 22
Figure 5 ....................................................................................................................................................... 24
Figure 6 ....................................................................................................................................................... 25
Figure 7 ....................................................................................................................................................... 26
Figure 8 ....................................................................................................................................................... 27
Figure 9 ....................................................................................................................................................... 35
Figure 10 ..................................................................................................................................................... 35
Figure 11 ..................................................................................................................................................... 36
Figure 12 ..................................................................................................................................................... 36
Figure 13 ..................................................................................................................................................... 38
Figure 14 ..................................................................................................................................................... 39
Figure 15 ..................................................................................................................................................... 43
Figure 16 ..................................................................................................................................................... 52
Figure 17 ..................................................................................................................................................... 52
Figure 18 ..................................................................................................................................................... 55
Figure 19 ..................................................................................................................................................... 56
Figure 20 ..................................................................................................................................................... 57
Figure 21 ..................................................................................................................................................... 60
Figure 22 ..................................................................................................................................................... 60
Figure 23 ..................................................................................................................................................... 61
Figure 24 ..................................................................................................................................................... 62
Figure 25 ..................................................................................................................................................... 62
Figure 26 Size .............................................................................................................................................. 63
Figure 27 ..................................................................................................................................................... 64
Figure 28 ..................................................................................................................................................... 65
Figure 29 ..................................................................................................................................................... 66
Figure 30 ..................................................................................................................................................... 66
Figure 31 ..................................................................................................................................................... 67
Figure 32 ..................................................................................................................................................... 68
Figure 33 ..................................................................................................................................................... 68
Figure 34Improvisation ............................................................................................................................... 69
Figure 35 ..................................................................................................................................................... 74
Figure 36 ..................................................................................................................................................... 74
 Chapter 1
INTRODUCTION
1.1 Problem Statement

What is the consumer buying behaviour before purchasing edible oil?

How to increase Sales of other Fortune products like Kacchi Ghani?

How is the Adani Wilmar Edible oil perceived in the market?

1.2 Rationale of the Problem

For any business wealth creation of its shareholders is utmost important which is only possible
when expected rat of returns will be over and above expectations of the investors. One of the
major factors influencing companys rate of return is its sales turnover over the period. Sales
turnover also depends on marketing of the product up to a great extent. In case of
manufacturing products the different stakeholders are involves in the selling process,
manufacturing company supply the product to the distributor and then to the wholesaler which
in turn passes through the retailers and retailers finally passes to the final consumers. So to
increase sales number of a company an efficient supply chain and well established distribution
network play very important role. After that retailers also play important role in pushing and
promoting your product to the end customer as many of the times customer isnt aware about
product so retailers can actually play role of shopping guide to them. The objective of this study
is to understand market scenario of edible oil products and consumer behaviour while making a
purchase decision. The product which has been chosen for study is edible oil, rice and besan.
 1.4 Methodology

Methodology is the process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys and
other research techniques, and could include both present and historical information.

The steps which complete the process are mentioned below:

Problem Identification
Development of Approach to problem
Research design Formulation
Fieldwork and Data Collection
Data Preparation and Analysis
Report preparation and Presentation

Research Design: Observation and Survey method

Sampling Design:
Sample Technique: Convenience sampling:
Sample Size: 60 Customers
Sample Area: Lucknow Region

Data Collection Method:

Primary Data
Data Collection tools Survey, Observations
Unstructured Questionnaire, Observations

Analytical Tool: Ms-Excel Data Analysis

1.5 Scope of the Study

The data collected in this report gives a broader overview of consumer buying behaviour. Its
approach on buying edible oil. Sample taken in this report is a good representation of general
customers. This report will help in understanding changing customer needs and demands. This
report also covers all the factors hindering the sales of other product lines like Mustard oil and
provides insights on challenges faced by them in market, and recommendations to cope them.

The main purpose of this study was to Understand Consumer behaviour

To study awareness of this Adani Wilmars products in the market and their brand image

To understand the problem point in mustard oil sales of Adani Wilmar

1.6 Limitations of the Study

Following are the some limitations of the study;

Due to shortage of time, study was confined to specified areas of Lucknow.

Some respondents were hesitant to disclose some information or have given incomplete
information.
Survey was done for limited products only.
There might have been some biased responses, and because of which findings may not
be 100 per cent accurate.
 Chapter 2
DETAILS OF THE ORGANIZATION
multinational corporations - the US$ 8.7 Billion Adani Group, and Wilmar International Ltd.,
Singapore, Asia's leading Agra business group with revenues exceeding US$ 45.46 Billion.

The brand fortune came into being in the year 2000, thus marking AWLS foray into the
branded packaged edible oil business. Fortune is the flagship brand of Adani Wilma. It became
the no. 1 brand in the market within just 2 years of its launch. Readers digest has hourned
Fortune as the most trusted brand for 4 years and it was adjusted a super brand for 2 years in a
row. Fortune has grown from strength to strength and continues to deliver the joy of eating to
India households. Fortune not only has the largest range of cooking oil in India, but also
continues to innovate and lead the cooking oil industry and lead the cooking oil industry with
new introductions. And, within merely 20 months of its launch, fortune rose to become Indias
largest selling edible oil brand, bearing that torch right up to this day. With the rapidly changing
market scenario and economy, AWL continues to grow and transform into a significant player in
the industry, evolving with the times. It is now one of Indias leading edible oil companies, and
the future for all of its brands looks very bright indeed. Today, AWL owns refineries in 17
strategic locations across India, has 8 crushing units and 19 packing units. Cumulatively, this
translates to a refining capacity of over 10300 tonnes per day, seed crushing capacity of 7485
tonnes per day and packaging capacity of 8500 tonnes per day.

AWL has the largest distribution network among all branded edible oil players in India, with
more than 93 stock points, 5000 distributors and *10% Retail Penetration which spans across
approx. 1 Million outlets all over India.
2.2.1 Products / Services and Processes/ Facilities

Major products of Adani Wilmar are as follows:

Line 1 Products under the brand name of Fortune are as follows:

Fortune Rice Bran Health

Fortune Soya health
Fortune Sunlite
Fortune groundnut oil
Fortune cottonseed oil
Fortune Kacchi Ghani
Fortune soya chunks
Fortune besan
Fortune Rice

Line 2 products manufactured by Adani Wilmar Ltd.:

Kings refined soybean oil

Bullet mustard oil
Raag Vanaspati
Raag gold
Line 1 Products under the brand name of Fortune are as follows:

Fortune Rice Bran Health

Fortune Rice Bran Health Oil is Indias highest selling rice bran oil. Our physically refined oil with
the goodness of Gamma Oryzanol helps increase your good cholesterol and reduce bad
cholesterol, along with a host of other rice bran oil benefits. So, switch to this healthy cooking
oil and make the right choice for your family.

Benefits of Rice bran oil:

Has a Neutral Taste: Best for cooking Indian food

Contains Good Fats: balanced fatty acid
composition, rich in monounsaturated and
polyunsaturated fats and free of trans-fats.
Heart Friendly: Right amount of Oryzanol which
help lower cholesterol
Lowers Cholesterol: American Heart Association
and The World Health Organization (WHO)
recommend rice bran oil recommends it.
Has a High Smoke Point: perfect for stir frying or
deep frying, maintain its nutritive quality even at
high temperatures
Less Oily: less viscous, does not stick to food
Rich in Vitamin E: Powerful antioxidant and has
antimutagenic properties which prevent from
cancer, boosts immunity.

Aids Weight Loss: natural antioxidants which Figure 1

boost your metabolic rate, long shelf life.
Good for the Skin: Squalling keeps it soft, supple and smooth.
Has Anti-Inflammatory Properties: reduce the effects of menopause like hot flashes

Pet: 1 litre Pouch: 1 litre Jerry Cans: 2 litres, 5 litres, 15 litres

Figure 2
Figure 3
Fortune Kacchi Ghani
Fortune Kacchi Ghani Mustard Oil, traditionally extracted from the first press of mustard seeds,
comes with a high pungency level and strong aroma. Being pure, our cooking oil retains its
natural properties and mustard oil benefits. Its strong aroma and pungency spice up your
cooking.

Benefits of Mustard Oil:

Made from the first press of mustard seeds in the traditional way
The best mustard seeds are slowly crushed in a
temperature-controlled environment
This retains pungency and natural properties
enhancing the taste of the food
Its high pungency levels also help stimulate your
appetite
Essential for keeping pickles fresh for a longer
duration while retaining their traditional flavor

Figure 4

Pouches: 500 ml, 1 litre Pet Bottles: 200 ml, 500 ml, 1 litre Jerry Cans: 2 litres, 5 litres, 15 litres,
15 kgs Tin: 5 litres, 15 litres, 15 kgs Barni: 2 litres, 5 litres
Fortune groundnut oil

Made from fresh groundnut seeds through traditional and organic cold processing, Fortune
Groundnut Filtered Oil maintains its purity and keeps the aroma of the food intact. This peanut-
flavored cooking oil remains stable even at high temperatures.

Pouches: 1 liter Pet Bottles: 1 liter Jerry Cans: 5 liters, 15 liters Tin: 15 kgs

Fortune cottonseed oil

With its less oil absorption properties, Fortune Cottonlite Oil ensures that every home-cooked
meal is healthy and light. Besides having a neutral flavour, our cooking oil retains its quality
even at high temperatures, making it ideal for deep frying.

Pouch: 1 litre Jerry Cans: 5 litres, 15 litres Tins: 15 litres, 15 kg

Figure 5
Figure 6
Figure 7
Figure 8
 2.2.2 Organization Structure

ASM Lucknow Organogram

ASM - ROHIT RANJAN

LUCKNOW

ASE-Ashish Pandey ASE-Bhupendra Singh ASE-Yogendra Singh

Faizabad LUCKNOW Gorakhpur

SR-Sharad Srivastava TSI-ABHINAV SHUKLA SR-Maheshwar Singh

Faizabad LUCKNOW HQ-Maharajganj

SR-Rajesh Srivastaa SR-RAJIV DIXIT SR- Himanshu Sahai

Gonda LUCKNOW Deoria

SR-Jitendra Gorai SR-Prabhanshu Srivastava SR-Tripti Nath Tripathi

Raebareilly LUCKNOW Gorakhpur

SR Ashish
Lucknow

SR-Arun Datt
Lucknow

SR-Satish Dixit
Lucknow

SR-Deepak Agrawal
Lakhimpur
2.2.3 HR Practices

Introduction:
In the generals term human resources means knowledge, skills, creative activity and talent of
an organization work force as well as the value attitudes and beliefs of an individual involved.
Earlier the employees of an organization are to be considered as a valuable asset of the firm. In
the firm the employees are working efficiently. They are provided different kind of facilities like
dress, bonus, canteen, transportation. If the employee is from higher authority, hospital
facilities, housing facilities, if there is an emergency need to employee.

Growth and Speed is a way of life at Adani. Exponential growth, diversification into new
businesses and international ventures, have created a wide range of career opportunities at
domestic as well as at international levels, which not only fulfil the aspirations of people but
also meet their passion and professional needs.

Adani provides an open and dynamic work environment where organisation believes in people
and also recognizes that its success and growth are driven by people and is dependent on
people capabilities.

The organisation recognises the critical role that employees play in the success and growth of
each of the businesses. It is the competence and drive of the people that set them apart from
other industries and lend them the competitive edge in building tomorrow's enterprise. Besides
having all these positive features the major negative feature is that Adani Wilmar Ltd. does not
freshers from any campus drive apart from its own institution. They hire off campus freshers or
only experienced people with street smart capabilities and who have creativity par excellence.

The HR Practices of Adani Wilmar Ltd. is as follows:

Recruitment and Selection

Performance Management
Training & Employee Engagement
Compensation
Carrier Development
2.2.4 Competition Analysis

Major competitors for Adani Wilmar in different categories are:

S.no. Product Competitor1 Competitor2 Competitor3 Competitor4

1 Refined Nature fresh Dalda Bail Kolhu Saloni

soyabean oil

2 Kacchi Ghani Bail Kolhu Dalda Tulsi Salon

3 Rice bran Saffola Sundrop Ricela Rizola

health oil

4 Sun flower Sundrop Dalda Bail Kolhu Mayur

oil

5 Soya Chunks Nutrela Nutreum Sevar

6 Besan Tata Rajdhani Shaktibhogh

7 Vanaspati Rath Dalda Mayur

8 Rice India gate Kohinoor Radical Daawat

Category Wise Analysis

Fortune Soybean Oil

Strength Weakness
Market Leader Low Margin
Uses health platform Damaged Products
Competitive price

Opportunity Threat
Increase Brand Promotion Local & Multinational Player
Increase Trade promotion Nature Fresh, Patanjali

North India has been traditionally a high soyabean consumer state, as soyabean oil provides
good value for money to people here and also tastes good it is used more than any other
cooking oil. Globally also soyabean Oil is the leading vegetable oil traded in the international
markets, next only to palm. Palm and Soyabean Oils together constitute around 68% global
edible oil trade volume, with Soyabean Oil constituting 22.85%. India being the largest importer
and consumer oil of edible oils for its consumption total 5.0-5.5 million tonne of vegetable oils
imported by India annually, 1.3-1.5 million tonne is Soyabean Oil, imported mostly from
Argentina, Brazil and the US.

Core strength of Adani Wilmar in this segment is its distribution capability and consumer loyalty
towards the product, during my market research I have found that there is high brand loyalty
for Fortune Kacchi Ghani and customers arent interested in buying any other product. Kacchi
Ghani is liked mostly for its delicious taste and price point most of the customers were satisfied
with the product quality and overall service.

Other competitors like Nature fresh and Patanjali still have to work hard to compete with
Adani. Patanjali can be a potential threat in long run to Adani because of their low price point
and intensive promotion. They are also exploiting health platform to sell their products. So a
comprehensive long term strategy should be adopted by Adani Wilmar to compete with such
rivals.
 Fortune Mustard Oil

Strength Weakness
Distribution Low Quality
Promotion Low Product Equity
Competitive price

Opportunity Threat
To capture market share Local Competitors
By providing more credit Low price competition
By Providing coupons

Mustard-rapeseed oil has long been one of the most consumed edible oils in India and currently
is third, after palm and soybean oil, even though most mustard is consumed only in the north.
Mustard oil consumption has shown a consistent growth about 5 percent per year for the past
40 years and currently it stands at approximately 2.3 million metric tons annually.

After Soyabean, Mustard oil is the most consumed cooking oil in the region, here some
challenges are poised by companies like Bail Kolhu which are predominantly a regional player
and because of their low cost they are able to do volume trade and also its taste and quality are
liked by the customers. Mostly mustard oil is used for cooking purpose, and also it is used for
pickling and consumption as raw oil directly on foods.

People buying fortune for mustard use are usually from upper middle class and hypermarket
buyers they prefer quality more than price most the people even dont know about Bail Kolhu
because of low promotion. Adani Wilmar is running many promotion campaigns to boost
Mustard oil sales as and also their product pricing is in line with its peers, which in long run can
help them to increase hold in local markets also.
 Fortune Sunflower Oil

Strength Weakness
Promotion Damages
Quality Non Refund Product
Poor after sales service

Opportunity Threat
Low market share Nature Fresh
Less Conscious customer Saffola

Sunflower oil has traditionally been marketed in India as healthy edible oil because of its
lighter character and low absorption. Sunflower oil is gaining popularity amongst household
because of its light colour and less sticky property. It is usually preferred by health conscious
customers. Also its price is bit more than Kacchi Ghani and mustard oil.

Sunflower oil has been very popular in southern India and it is widely used for cooking
purposes. Sunflower oil market is majorly held by Nature fresh and Saffola. Adani Wilmar has
to formulate strategy to increase their sales figures. Also people are not much aware about
their health, which is the reason of low sales of sunflower oil in other parts of country. With
rising income levels there most of the potential lies where companies can make aware people
about health benefits of Sunflower oil and encourage them for its use.

As sunflower crop productivity is very less as compared to the demand India is heavily
dependent on import from countries like Ukraine and Russia since 2009 India has seen
continuous rising trend in imports of sunflower seed. In northern India is it still has a lot of
potential to expand its sales as people here use soyabean and mustard oil they can be made
aware about goodness of soyabean oil and alter their buying habits.
 Fortune Besan

Strength Weakness
Distribution Capability Late entry in market
Low Price

Opportunity Threat
Trade Promotion Local as well as national players
Advertisement Shakti Bhog, Tata

Besan is widely used product all over across India and it has traditional and cultural value also
attached with it. It is a staple ingredient in the cuisine of the Indian subcontinent; mostly besan
is used to prepare cuisines like Laddu, Bundi, Dhokla, Kadhi etc. In Northern region Besan
market is currently dominated by brands like Shakti Bhog, it is having the most market share.
Fortunes Besan is the national leader in Besan market; also players like TATA are rapidly
expanding their sales in Besan segment.

New entrants like Patanjali are are also developing their market with selling preposition of pure
and natural, Other companies also should use these marketing gimmicks to compete with it.
Although Adani Wilmars entry in Besan products is late and initially they were targeting on
edible oil only. Sales of Adani Besan have continuously increased and still market has a lot of
potential to gain from.

There are many customers who buy unbranded Besan from Retail stores; conversion of those
customers into buying branded products can make a significant difference.
Consumption Pattern

Mustard oil is getting consumed in Northern India since a long time for cooking and other
eatable needs but from the past few years shift in consumption of soyabean and palm oil is
seen for household consumption and palm oil manly for HORECA consumption respectively. As
per GGN Research Palm oil was consumption stood at 36% following which soyabean oil at 25%
and Mustard oil consumption at 16%. Soyabean oil market is already dominated by Adani
Wilmar

North India
Other Oils
17%

Sunflower Oil
Palm Oil
6%
36%

Mustard Oil
16%

Soyabean Oil
25%
Figure 9

South India is the highest consumer of Palm oil in percentage terms, it has total of 63% share in
consumption. Due to traditional reasons and relativeness to palm trees Palm oil is preferred
much in southern region. It is widely used oil in many south Indian dishes also. After that
sunflower oil is second largely consumed with 23% following with other oils like Soyabean and
others. Other
Oils South India
Soyabean 6%
Oil
1% Mustard Oil
7%

Sunflower
Oil
23% Palm Oil
63%

Figure 10
This is the most prosperous region of India having the highest per capita consumption of edible
oil. Acceptability of Palm Oil has improved and it has nearly 37% share. This is the highest Soy
oil consuming region as the major domestic Soybean crop is grown and there is good household
demand of this oil. SBO Consumption is 32%. The mustard oil consumption is 5% which is
majorly in Rajasthan.

West India

Other Oils
Mustard Oil 19% Palm Oil
5%
37%
Sunflower Oil
7%
Soyabean Oil
32%

Figure 11

This is the lowest per capita consuming region due to lower income levels. Major consumption
is still with palm oil having 48% of total share following which mustard oil consumption at 18%
and then soyabean oil at 12%.

East India

Other Oils
Sunflower Oil 20%
2% Palm Oil
Soyabean Oil 48%
12%

Mustard Oil
18%

Figure 12
2.2.5 Industry Analysis

FMCG Sector is one of the core sectors of Indian economy and this sector is showed a promising
growth numbers in recent years Rising income levels and favourable demographics is giving a
great boost to this sector during 20162020. FMCG market In India is expected to grow at a
CAGR of 20.6 per cent and by 2020 sector is expected to touch USD 103.7 Billion. Total
consumption expenditure to reach nearly USD 3600 billion by 2020 from USD 1469 billion in
2015. Beside urban market rural market is also expected to grow at a CAGR of 14.6 per cent,
during 20162025 and reach USD100 billion by 2025. As of 2016, the overall rural FMCG
consumption stands at an estimated USD29.4 billion

Indian markets are gradually moving from traditional stores to modern format retail stores and
Indias modern retail is also expected to grow 3 times the present value by 2020. As middle
class of the country is growing rapidly there is a huge scope for FMCG industry as per capita
disposable income is also set to increase by CAGR 4.1% and is estimated to rise to USD 631 in
2020 from USD 516 in 2015.

Growth Drivers Attractive Opportunities

Both Demographic and psychographic Lot of scope of penetration in Rural

factors are key growth drivers for this
sector.
Tier II/III cities are also witnessing
faster growth in modern trade
market
Disposable income has also been
increased due to the schemes like
direct benefit transfer

Growing demand for premium

products

Higher Investment Policy Support

Modern retail Share expected to triple 100% FDI approval in single brand
its growth from US60 Bn to US 180 Bn retail & 51% in multi brand retail

Patanjali will spend US 743.72 Mn in The minimum Cap for foreign

various food parks of country. companies to invest in India is US 100
Mn
The FMCG Sector In India generated revenue worth USD 47.3Bn in 2015 and over 2007-16, the
sector is expected to post CAGR of 11.9% in revenues In the long run, with the system
becoming more transparent & easily compliable, demonetisation is expected to benefit
organised players in the FMCG industry. Also In the long run, with the system becoming more
transparent & easily compliable, demonetisation is expected to benefit organised players in the
FMCG industry. Consumers have started demanding customised products specifically tailored
to their individual tastes and needs. With growing awareness Consumers are becoming more
brand conscious and prefer lifestyle and premium range products given their increasing
disposable income. For this Companies are also focusing on continuous innovation and
customer engagement to strengthen their brand appeal in market.

Trends in FMCG Revenues over the

years (USD Billion)

2007 2008 2009 2010 2011 2012 2013 2015 2016 2020

Figure 13

Source: Booz & Company, Dabur, AC Nielsen, TechSci Research,

Note: F - Forecast
Companies like Dabur are now trying to Increase its penetration in rural areas to generate more
revenues from rural India and for this they are now focusing on rural segment which is showing
a continuous growth from past few years. They are also focusing on improvising their
distribution network in rural markets and improve efficiency and reach in market .

Hair Care is the leading segment, accounting for 23 per cent of the overall market in terms of
revenue Food Products is the 2nd leading segment of the sector accounting for 19 per cent
followed by health supplements & oral care which has a market share of 16 per cent & 15 per
cent, respectively.

Market Break-up by Revenue (FY16)

5%
7% Hair Care
23% Foods
6%
Health Supplements
9% Oral Care
OTC & Ethicals

19% Home Care

15%
Digestives
Skin Care
16%

Figure 14

Source: Dabur, TechSci Research

2.3 Organization Business Profile

The major business of Adani Wilmar Ltd. is consumer essentials i.e. FMCG products. They are
the largest and the only national level company in edible oil segment. Adani Wilmar has a
number of products for the consumer segment. These can be categorized in to edible oils, Rice,
Besan & Pulses.

Fortune has been voted as "India's No. 1 Edible oil brand" as per Nielsen Retail Index Report.

AWL's Specialty Fats Business Division has been set up to service the food industry in India and
its neighbourhood. With world class technology and the best of plant & machinery backed up
with elaborate Quality Assurance system and product Development & Application facilities,
specialty fats division of AWL is fully geared to meet the most stringent technical specifications
of the food industry.

Adani Wilmar Ltd. produces international quality Standard of Non-GMO Soya Lecithin in all its
facilities (Nagpur, Neemuch, Vidisha, Chhindwara, and Bundi) to meet the respective and
desired specifications of the industry. All our plants are as per International Standards and
equipped with an automated filling and loading facility for Non GMO Soya Lecithin.In addition
to this, Adani Wilmar Ltd. will soon produce value added Soya Products like TVP, Defatted Soya
Flakes Toasted, Untoasted and more. All five plants are Halal and a Kosher Certified and
Nagpur, Neemuch and Vidisha Plants Cert ID Certified. Non GMO Soya Lecithin is used in the
food industry, feed industry, plant industry, leather industry and in explosives for its functional,
nutritional and therapeutic properties. Non GMO Hydrolysed Soya Lecithin is used as an Anti-
Sticking Agent, Anti Staling Agent, and Anti-Spattering Agent. It is also used in Feed Industry.
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Series1
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Packaging Price Quality Taste

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