EXPLORING SCOPE FOR

CONSUMER MARKET WITH

INTRODUCTION OF
BLEND OIL

(A
Study of 40 women for edible oil
purchase preferences and oil blends)

A
Term Paper submitted to
Faculty of Management Studies
M.S.University , Baroda

Research Guide:
Submitted by
Shri Sunil Goyal
Neha Pithwa
(MBA MARKETING)
Roll No.
23

ORGANIZATION:
Ashwin Vanaspati Industries Pvt
1
ltd
(Vansapati Ghee and Refined Edible oils)

ACKNOWLEDGEMENT
I take this opportunity to extend my gratitude to all
those who have helped me in conducting this study.

I am deeply thankful to my guide Shri Sunil Goyal

has constantly supported and provided valuable
suggestions on various aspects of study right from
choosing topic of the study to complete my term
paper. He also spared adequate time to go through
my rough drafts and suggested necessary changes
and corrections that has motivated and helped me
immensely in making better effort for my term paper.

I am deeply thankful to Mr Nikunj Gandhi (Finance

Manager) and Mr Gaurang Sangani ( Marketing
Manager) of our company to assist me in my project
with there experiences in edible oil industry.

I owe a deep sense of gratitude to my our sales

executive Mr Vrajesh Shah and Mr Vipul tailor who
actually collected data of questionnaire and help for
data encoding for the same.

Last but not least I would like to thank my

classmates: Vasudev Maller ,Dinesh Dubey , Ashish
Panchal and Pooja Mukundan who helped me
selflessly for my term paper.
2
 PITHWA NEHA VRAJESHBHAI

ASHWIN VANASPATI
INDUSTRIES PVT LTD

Enriched by a tradition and commitment to quality for over

decades, Ashwin Vanaspati Ind. Pvt. Ltd. Continues its
persistent and never-ending pursuit to provide pure and
healthy edible oils to the industry and to different strata of
the society.

With a history dating back to 1944, Ashwin Vanaspati Ind.

Pvt. Ltd has carved out a niche for itself in manufacturing,
marketing and distribution of Vanaspati and Refined Oils
such as Maize oil, Cottonseed oil, Sunflower oil, Soyabean oil
and Coconut oil. Ashwin is among the pioneers in the
manufacturing and distribution of Hydrogenated Vegetable
Oils popularly known as Vanaspati". This humble beginning
had a deeper insight in the minds of our promoters.

Primarily it was positioned as an affordable alternative to

ghee for the common man, but without compromising on
quality .Sincere efforts and clear perspectives of our
promoters were coupled with dynamism, experience and
enthusiasm of a highly ambitious and spirited team.

Ashwin Vanaspati today enjoys an enviable positioning the

market because of its converted efforts in Research &
Development, Quality Control, Production and Diversification.
Keeping customer requirements and quality of product as our
topmost priorities, we have successfully developed superior
products at affordable price meeting the ever changing and
diverse requirements of consumers and industry.

3
MANUFACTURING PLANTS Our manufacturing
plants located at Samlaya (Vadodara) and Mumbai have a
combined capacity of producing about 25000 metric tonnes
of Hydrogenated vegetable Oils per year and about 75000
metric tonnes of various Refined Edible Oils per year to meet
the growing demand.

Another motive behind the uncompromising efficiency and

volume of our manufacturing plant is to benefit from superior
inventory management and plan timely and cost effective
delivery.

PRODUCTS:
INDUSTRIAL PRODUCT: (since 1944)

• Vanaspati ghee
• Refined corn oil
• Refined Soyabean oil
• Refined palm kernel oil
• Refined sunflower oil
• Refined coconut oil
• Refined coconut oil
• Pure coconut oil

CONSUMER PRODUCT

• Korn-drop ( Refined Corn oil) ( since 2001)

4
SR CONTENTS PAGE
NO. NO
1 CHAPTER 1: BACKGROUND 6
Introduction 7
Purpose of Study 7
Goal of study 7
Significance of study 7
Scope of consumer market 8
Edible oil and Blend oil 8
2 CHAPTER 2 STRATEGIC 10
ANALYSIS
Environmental Scanning 11
SWOT Analysis
20
Strategies to Increase Market Share 26
3 CHAPTER 3 :REVIEW OF 28
LITERATURE
4 CHAPTER 4: RESEARCH 32

5
 METHODOGY
5 CHAPTER 5: TABLES AND GRAPH 35
6 CHAPTER 6: CONCLUSION AND 42
RECOMMENDATION
7 BIBLIOGRAPHY 48
8 QUESTIONAIRE 49
9 POWER POINT SLIDES 55

CHAPTER-
1
Background
Introduction………………………………………………………
…..pg 7
Purpose of Study ,……………………………………………….
pg 7

6
Goal of
study…………………………………………………………pg 7
Significance of
Study………………………………………………pg 7
Scope for consumer
market…………………………………..pg 8
Edible oil and Blend
oil…………………………………………pg 8

INTRODUCTION

AVIPL is one of the leading manufacturers of edible oil and

vanaspati ghee. Which cover its 70 % of sales from “Industrial
product”. Trend in edible oil sectors is going towards package
oil so there is bright future for consumer market in near future.

Due to increase health awareness there is need of coming oil in

consumer market with healthy combination of oil, so company
had plan to come with ”Blend oil “(admixture of two oil for
better health).

PURPOSE OF STUDY

7
Purpose of the study is exploring future in consumer
market through modularization (giving added value in
products for specified consumer segments). So we need to
come with new product lines which have better future i. e
blending of oils

GOAL OF STUDY

Goal of study is to overcome difficulty of unethical blending

practices channelizing consumer diversification towards
branded oil with introduction of blend oils. Hence we had
conducted small survey for the acceptance of blend oil.

SIGNIFICANCE OF STUDY

With growing quality consciousness and plummeting price

differences between packaged and non-packaged edible oils,
the packaged edible oil sector will capture 50% of the market
share within three years. The packaged edible oil consumption
is only about 20% of the total 12.5 million tonne domestic
consumption. Hence study is done for exploring in consumer
market with new concept.

Due to advancement of packaging technology, the price

difference between packaged and loosely sold oils has
significantly come down. As results of the increase in health
consciousness, consumers even in the smaller towns are
gradually shifting to packaged edible oils from loosely sold oils.
Thus, this study will benefit AVIPL through introduction on oil
with healthy blend and hence consumer will have opportunity
for healthy oil.

SCOPE OF CONSUMER MARKET

Though company is have smooth running in industrial product

which is characterized by volume sales, specification of product
with lesser market communication.

“Due to advancement of packaging technology, the price

difference between packaged and loosely sold oils has
significantly come down. As results of the increase in health

8
consciousness, consumers even in the smaller towns are
gradually shifting to packaged edible oils from loosely sold oils.
The packaged edible oil industry is growing at 10% annually
and half of the market will be controlled by packaged oil
manufactures within three years.

Hence company have probability of having better future

towards consumer market in near future.

EDIBLE OIL

Edible oils and Fats are essential ingredients for a wholesome

and balanced diet and are vital items of mass consumption.
Amount and type of oil plays vital role in raising and decreasing
cholesterol level of body. No single oil have ideal ratio of fatty
acid beneficial to our heart. So one should keep on changing oil
or use various combination of oil.

BLENDED OILS.

Blended oils are admixture of two or more edible oil. Beside

amount and type of oil, % fatty acid of oil plays major role CHD,
Hypercholesterolemia, heart failure, central obesity etc. Use of
more than one source of oil gives an additional advantage of
providing greater variety of minor components present in oils
which may enhance their antioxidant properties.

Consumers can blend oil at home level according to pattern of

purchase and culinary habits, but as time constraint there may
be resistance of blending oil at home level, henceforth need
arise to have blend oil in packed form at company level.
Blended oil in consumer pack is new concept which is beneficial
to consumers and as well as for edible oil manufacturers to
overcome price fluctuations.

Government of India has permitted admixture of any two edible

oils. Blended oil that could ensure optimal balances of fatty
acids in Indian diets are available in the market. The Blended oil
may be used for all the application where ever any edible oil is
used. But because of its comparatative high prices with added
nutritional benefits, it will attract well educated, health
9
conscious and higher middle and high income group of the
society.

MAIN EDIBLE OILS

There are two sources of oil: primary source and secondary

source. Primary source are principal oilseeds viz groundnut oil,
rapeseed, mustard, Soyabean, sunflower, safflower, castor, etc.
Edible oils obtained through secondary source include coconut,
cottonseed, rice -bran and oilseed cakes.

10
CHAPTER-
2
STRATEGIC ANALYSIS
• Environmental
Scanning………………........................pg 11
• SWOT
Analysis……………………………………………………pg
20
• Strategies to Increase market share
value…………..pg 26

11
 STRATEGIC ANALYSIS
ENVIRONMENTAL SCANNING, GENERAL AND INDUSTRY
SPECIFIC ENVIRONMENT
• SWOT ANALYSIS

• STRATEGIES TO INCREASE MARKET SHARE

ENVIRONMENTAL SCANNING, GENERAL AND

INDUSTRY SPECIFIC

IMPORTANCE OF EDIBLE OILS IN THE COUNTRY’S

ECONOMY

Oilseeds and edible oils are two of the most sensitive essential
commodities. India is one of the largest producers of
oilseeds in the world and this sector occupies an important
position in the agricultural economy and accounting for the
estimated production of 28.21 million tonnes of nine cultivated
oilseeds during the year 2007-08. India contributes about 6-7%
of the world oilseeds production. Export of oil meals, oilseeds
and minor oils has increased from 5.06 million Tones in the
financial year 2005-06 to 7.3 million tons in the financial year
2006-07. In terms of value, realization has gone up from Rs.
5514 crores to Rs.7997 crores. India accounted for about 6.4%
of world oilmeal export.

Major Features of Edible Oil Economy

12
 There are two major features, which have very significantly
contributed to the development of this sector. One was the
setting up of the Technology Mission on Oilseeds in 1986. This
gave a thrust to Government's efforts for augmenting the
production of oilseeds. This is evident by the very impressive
increase in the production of oilseeds from about 11.3 million
tonnes in 1986-87 to 24.8 million tonnes in 1998-99. There was
some setback in 1999-2000 because of the un-seasonal rain
followed by inclement weather. The production of oilseeds
declined to 20.7 million tonnes in 1999-2000. However, the
oilseeds production went up to 27.98 million tones in 2005-06
and was 24.29 million tonnes during 2006-07 oil year. As per
the 3rd advance estimate by Ministry of Agriculture dated
22.4.08 the production of nine major oilseeds is estimated to be
about 28.21 million tonnes during 2007-08. The other dominant
feature which has had significant impact on the present status
of edible oilseeds/oil industry has been the program me of
liberalization under which the Government's economic policy
allowing greater freedom to the open market and encourages
healthy competition and self regulation rather than protection
and control. Controls and regulations have been relaxed
resulting in a highly competitive market dominated by both
domestic and multinational players.

TYPES OF OILS COMMONLY USE IN INDIA

India is fortunate in having a wide range of oilseeds crops

grown in its different agro climatic zones. Groundnut,
mustard/rapeseed, sesame, safflower, linseed, nigerseed/castor
are the major traditionally cultivated oilseeds. Soyabean and
sunflower have also assumed importance in recent years.
Coconut is most important amongst the plantation crops.
Efforts are being made to grow oil palm in Andhra Pradesh,
Karnataka, Tamil Nadu in addition to Kerala and Andaman &
Nicobar Islands. Among the non-conventional oils, rice bran oil
and cottonseed oil are the most important. In addition, oilseeds
of tree and forest origin, which grow mostly in tribal inhabited
areas, are also a significant source of oils.

In India consumer oil preferences vary from region to region

because preference is based on local cultivations.

13
 Region PrPreferred Oil
North Mustard, rapeseed oil
East Mustard, rapeseed oil
West Groundnut
South Groundnut, coconut

India is fortunate in having a wide range of oil seed crops grown

in its different agro-climatic zones. Groundnut,
mustard/rapeseed, sesame, safflower, linseed, Niger
seed/castor are the major traditionally cultivated oilseeds. Soya
bean and sunflower oils have also assumed importance in
recent years. Coconut is the most important amongst the
plantation crops. Among the non-conventional oils, rice bran oil
and cottonseed oil are the most important.

Figures pertaining to estimated production of major cultivated

oilseeds, availability of edible oils from all domestic sources and
consumption of edible oils (from Domestic and Import Sources)
during the last few years are as under:

-( In lakh Tonne)

Oil Year Production Net availability of Consumption of Edible

(Nov.- of Oilseeds edible oils from all Oils (from domestic
Oct.) domestic sources and import sources)
2000-2001 184.40 54.99 96.76
2001-2002 206.63 61.46 104.68
2002-2003 148.39 46.64 90.29
2003-2004 251.86 71.40 124.30
2004-2005 243.54 72.47 117.89
2005-2006 279.79 83.16 126.04
2006-2007 242.89 73.70 115.87
2007-2008 297.55 86.54 142.62
Source:
(i) Production of oilseeds: Ministry of Agriculture
(ii) Net availability and consumption of edible oils: Directorate of
Vanaspati Vegetable Oils & Fat

14
CONSUMPTION PATTERN OF EDIBLE OILS IN INDIA

India is a vast country and inhabitants of several of its regions

have developed specific preference for certain oils largely
depending upon the oils available in the region. For
example, people in the South and West prefer groundnut oil
while those in the East and North use mustard/rapeseed oil.
Likewise several pockets in the South have a preference for
coconut and sesame oil. Inhabitants of northern plain are
basically hard fat consumers and therefore, prefer Vanaspati, a
term used to denote a partially hydrogenated edible oil
mixture. Vanaspati has an important role in our edible oil
economy. Its production is about 1.2 million tonnes annually. It
has around 10% share of the edible oil market. It has the ability
to absorb a heterogeneous variety of oils, which do not
generally find direct marketing opportunities because of
consumers’ preference for traditional oils such as groundnut oil,
mustard oil, sesame oil etc. For example, newer oils like
Soyabean, sunflower, rice bran and cottonseed and oils from
oilseeds of tree and forest origin had found their way to the
edible pool largely through vanaspati route. Late by then came
concept of deordarization oil.

15
WORLD OIL CONSUMPTION
World vegetable oil consumption is forecast to increase by 5
per cent in 2010-11, led by increased human consumption
in China and India and continued support from the biodiesel
sectors in several countries, according to according to the
latest report from Australian Bureau Of Agriculture And
Research Economics (ABARE). World use of vegetable oils for
human consumption is forecast to rise to around 113 million
tonnes in 2010-11, up from an estimated 109 million tonnes in
2009-10. Industrial use of vegetable oils (mainly biodiesel) is
forecast to increase by 6 per cent to a record 29 million
tonnes in 2010-11.

Insufficient rainfall in the 2009 monsoon in India resulted

in lower domestic oilseed production in 2009-10, which
reduced both oilseed crushings and stocks of edible oils. In
response to concerns about food price inflation, the Indian
Government removed all import duties on crude vegetable
oils as a measure to boost domestic edible oil supplies.
Assuming import duties are not reinstated in 2010-11, a
further increase in Indian vegetable oil imports is likely in
response to continued growth in domestic vegetable oil
consumption.

Global production of biodiesel has risen sharply in recent

years in response to mandated biodiesel use in Latin America,
North America and the European Union. As at January 2011,
Brazil increased its blending requirement from 4 per cent to 5
per cent. With soya oil the major feedstock, the required
increase in biodiesel production is expected to absorb most of
the growth in Brazilian soya oil production, limiting exports
and providing support for soya oil prices. Similarly, higher
mandated use of advanced biofuel in the United States is
expected to boost domestic consumption of soya oil in 2010-
11. In the European Union, industrial consumption of
canola/rapeseed oil is forecast to increase by around 4 per
cent in 2010-11, Despite recent reductions in biodiesel
subsidies and the announcements by some European Union
member countries of delayed increases in mandated use.

16
End-of-season global oilseed stocks are estimated to be
around 75 million tonnes in 2009-10. This is significantly
higher than previous forecasts. Stocks in the United States are
SWOT ANALYSIS
Strengths, Weaknesses, Opportunities and Threats (SWOT).

SWOT analysis is done for auditing an organization and its

environment for introducing blend oil which will help our
organization to focus on key issues. Strengths and weaknesses
are internal factors. Opportunities and threats are external
factors.

17
STRENGTH
Strong management:
Promoted by the Chawla family, the company is a part of a well-
established business house with decades of experience (since
1944) in dealing with vanaspati and refined oil The vast
experience and foresight of the management has helped company
improve efficiency and be sustain in market in terms of quality
vanaspati and edible oil at affordable price.

Manufacturing Plant
Our manufacturing plants located at Samlaya (Vadodara) and
Mumbai have a combined capacity of producing about 25000
metric tonnes of Hydrogenated vegetable Oils per year and about
75000 metric tonnes of various Refined Edible Oils per year to
meet the growing demand.

Efficient and flexible facilities:

The company is not only crusher of corn germ seeds but also has
efficient and flexible manufacturing facilities. The units are well
equipped to switch to processing of any crude edible oil.
Depending upon the demand for the commodity or rather type
of edible oil demanded (cottonseed oil, sunflower, groundnut
etc), the company could switch to processing of any edible oil.
Apart from the integrated facilities, profitability in the Gujarat
edible oil sector is the result of increased automation to achieve
yields, reduced manufacturing cost on per tonne basis of edible oil
produced and the flexible facilities.

Secure raw material supply:

Our plants are located in Gujarat and Mumbai . The facility are
located in the primary raw material producing states, which
results in ease in procuring raw material and also ensures smooth
supply of the same. Moreover, the facilities are also well
connected to principal modes of transportation (viz railway and
road) that result in savings in transportation cost. The company
has initiated bulk sourcing of seeds from NAFED (Soyabean). It
also imports crude Soyabean oil from South America and Palm oil
for Vanaspati production from Malaysia and Indonesia. Owing to
its experience and well-established relations with raw material
suppliers, the company enjoys competitive advantage over other
players. 18

Well-trained, skilled employee base:

WEAKNESS
POOR PENETRATION-India market: The company enjoys
market leadership position in the corn oil and vanaspati ghee
in Gujarat but not for Soyabean oil .AVIPL has no presence
other parts of India for consumer market In that sense, it
lacks geographical reach. However, the company is looking
at expanding its reach and plans to foray into newer
markets.

Robust expansion plans. AVIPL planned out expansion

plans to capitalize upon the opportunities in the edible oil
sector and sustain its market share. The company is planning
to have crushing capacity plan crushing capacity from the
current 75,000 MT per year by 2010, but delay in issues
related to to land acquisition, clearances, and construction
work delays have the direct impact on the company’s
expansion plans, apart from issues related to land
acquisition, clearances, and construction work delays.

Derived prices and no pricing power: Further, the sales

price of mustard oil has to be aligned with the cheaper
Soyabean oil. Else, the corn oil gets blended with the ground
oil to be sold out as refined cooking oil. Thus, the price
variation is in the range of 10% to 12% and corn oil does not
fetch higher realizations (above 10% to 12%). If the price
variation increases or the gap widens then the unorganized
manufacturers opt for blended oil. Hence there is no pricing
power as such. Margin expansion is possible only by way of
value addition, branding, retail packaging or introducing cost
effective manufacturing process.

19
20
OPPORTUNITIES
Low per capita consumption: India is the fourth largest
edible oil economy in the world. With an annual consumption
of 12 MT, per capita consumption at 12 kg per annum is very
low as compared to the world average of 20 kg per annum.
Further, there is supply mismatch in the edible oil segment
with domestic supply being approximately 7.72 MT against
demand of 12 MT. The shortfall is made up by imports, the
second largest import bill item for India. This highlights the
opportunity available for domestic edible oil manufacturers
to grow and expand their business.

Growing organized sector: The Indian edible oil sector and

especially corn oil and Soyabean market is largely
fragmented and unorganized (85% market share), which is
shifting to the organized (15% market share) sector owing to
the tax reforms (VAT) and on account of preference for
packaged and branded products. Increase in awareness
regarding adulteration and increased health consciousness
(corn oil is one of the healthiest oil as it contains less amount
of saturated fats) has further aided the growth of the
organized sector.

The retail boom backed by rising income levels has opened

up another frontier for the companies like AVIPL Oils to sell in
retail packs that enjoy high margins and develop brand
equity in line with other FMCG products to create pricing
power. These moves will not only help company expand
customer base with increased volumes but will also lead to
margin expansion.

Complete integration: The company indigenous

manufacturer of corn oil in India. The company’s integrated
operations with respect to manufacturing process of edible
oil and within house packaging unit has resulted in cost
savings, which results in better margins and in turn, higher
returns to share holders. However, still there is ample scope
left to further integrate the operations both ways - backward
and forward integration.

Talking about the forward integration, the company had

come up with solvent extraction plans for oil cakes and
derivation of acid oil. Company is also planning to penetrate
ready to eat food segments. However, all plans are
considering the long-term prospects
21 of the business and
which will only materialize over a period of time.
THREAT
Competitive environment: AVPIL operates in a highly
competitive environment. Its inability to penetrate as
national brand .Further, the possibility of new entrants
cannot be denied given the opportunities available in this
sector and the other existing players ramping up their
capacities and market share.

Gets substituted: The company’s products have not yet

developed the requisite brand image and hence get
substituted with other refined edible oil brands especially in
the urban markets.

Acceptance of blend oil. Consumer may not accept the

blend oil concept as a threat as unethical blending.

22
STRATEGIES TO INCREASE MARKET SHARE VALUE

STRATEGIES FOR COST LEADERSHIP:

Cost Leadership:

• Cost leadership involves a company attaining the lowest

cost of producing a product or service.

• Cost leadership is used when there is a demand for

functional products and there is price competition in the
markets.

OUR ORGANIZATION

As we have have our own crushing unit for oil we had tried to
develop forward contracting at lowest price for buying corn
germ ( for corn oil extraction) for next 1 year. Hence company
can give best possible market price and since oil is daily
consumable item price plays a major role.

Moreover as far as brand is concerned our company was

pioneer to bring corn oil in Gujarat and our product is in market
since 2001 whereas competitor started from late 2006.

EXPANSION THROUGH INTEGRATION:

Integration:I

• Integration basically means combining on the basis of the

value chain related to present activity of the company.

• Integration is also a part of diversification strategies as it

involves doing something different which company is
already doing previously.

OUR ORGANISATION

AVIPL, we had already implemented our strategies for forward

integration for our “oil cake” which is a byproduct after
refining oil. We had started with processing of oil cake for

23
derivative “acid oil”. Which we use to sell in market but now
having our own solvent extraction plant at sanand.

STRATEGIES FOR DIFFERENTIATION

Differentiation:

• Differentiation is giving something unique and different to

a customer, which customer values and thus is willing to
pay for it.

• Differentiation could be offered in various ways, the

product itself, features, quality, service, distribution etc.

OUR ORGANISATION

AVIPL is giving differential advantage to consumers in terms

of quality and health of oil. Since oil plays major role in our
diet it should be healthy company gives differential
advantage through fortification Vitamin A and Vitamin D.

Regarding packaging of 15 litre

There is lot of adulteration of oil goes on even for branded

oil, e.g if groundnut oil price rises trader may add corn oil
and add essence and may sell same jar with high price of
groundnut oil. So to avoid such adulteration to some extent
we keep our tin size smaller compared to other regular size
but for same refilled amount as others so that chances of
adding other oil in is minimized.

FOCUSED STRATEGY

Focus:

Here the company would choose a small market either

geographically or a customer segment.

OUR ORGANISATION

24
 AVIPL focus on “health”, we even market our brand “korn-
drop” the refined corn oil as healthy oil. We approach to
doctors for recommending oil for lowering cholesterol being
healthy. We target house ladies, school teachers, seminars,
medical camp, etc through lecture of corn oil benefits.

CHAPTER- 3
REVIEW OF LITERATURE

25
REVIEW OF LITERATURE

Edible oil is daily essential product used daily and it directly

relates to health of consumer, with growing quality
consciousness and plummeting price differences between
packaged and non-packaged edible oils, the packaged edible oil
sector will capture 50% of the market share within three years.

Various kind of healthy oils are available in market but

according to research article by American Heart
Association which says that naturally occurring edible oils are
not wholesome in terms of balanced fatty acid composition and
in minor constituents, which have independent health benefits.
Oil have three types of fatty acids i.e. saturated fatty acid
(SFA), MUFA (mono unsaturated fatty acid) and PUFA (Poly
unsaturated fatty acid), which should be equal in all oils. Efforts
have been put towards developing combinations of vegetable
oils to provide fatty acid composition in the ratio of
approximately 1:1:1 and 1:2:1 for SFA: MUFA: for meeting the
needs of health conscious individuals.

Result of this article indicates that no oil is having such ideal

ratio hence oil should be blended to get ideal combination,
study of this research article also indicated positive results on
decrease of cholesterol of one who changes their oil rather
than one who uses same oil .

Based on research article on “ blending oil to enhance

nutritional value of edible oils”, the blends selected were
soyabean and palmolein with sesame in the ratios of 80:20 and
20:80. These blends were stored for 12 months and their
physicochemical changes and fatty acid composition were
studied every month till the end of the storage period. Slight
variations of increase in saturated fats and decrease in
unsaturated fats were seen over time, which were significantly

26
different than control. Based on the fatty acid composition of
the blends proportion of S:M:P calculated showed that no blend
had achieved the ideal ratio of 1:1:1. Results indicated that in
terms of stability soyabean oil was having stablily over long
term , since our market research survery indicated acceptance
of soyabean oil we got base to select this as one option.

But one of the limitations of this study was only based on

storage condition and not on health or effect on cholesterol
level was studied. But studied provided guideline for selecting
soyabean oil and other factors for selecting blend oil like there
are basically three parameters to adjudge any oil as the
healthiest cooking oil i.e., ratio of saturated/mono
unsaturated/polyunsaturated fatty acid, ratio of essential fatty
acids (Omega 6/Omega 3) and presence of natural antioxidant.
The oils can be blended even to derive the protective
advantage due to the presence of specific ingredients that offer
protection against oxidation to improve frying recyclability.

We came to conclusion of taking ricebran as one of the blend

though expensive seeing to benefits of rice bran oil by study
conducted on ricebran oil by B.V.Mehta, Executive Director, The
Solvent Extractors' Association of India, Mumbai

We had consider following ratio for coming to our final

conclusion based on ( Article on Rice bran: Unique gift of
nature)

Fatty Acids
Weight (%) Antioxidan
Oil
MUF PUF ts
SFA
A A
Mustard
Oil / Tocophero
6 67 27
Rapeseed ls
Oil
Sunflower 12 38 50 Tocophero

27
 Oil ls
Safflower Tocophero
7510 15
Oil ls
Soyabean 16 24 Tocophero
Edible oil Oil
60
Linoleic acid (%) ls
Cholester
ol Level
Safflower Groundnut
77.1 20 50
16 Tocophero
30
Sunflower Oil
61.4 12 ls
Cottonseed 58.0
Rice Bran O20 45 Tocophero
35
Soybean Oil ls
50.2 +3

Sesame 45.2 +2
Tocotrieno
Corn 43.0 -15
Rice Bran 36.0 -17
ls &
Groundnut 35.0 +5 Oryzanol
Corn Oil 12.8 29 Maximum
58.2
possible
abo abov belo
Recommen Maximum
ut e w
ded possible
33% 33% 33%

If we look at the composition of the various vegetable oils commonly

used in India, we shall find that no single oil could meet the
requirement of these recommendations but Rice bran oil & Groundnut
oil are closest to the recommendations.
Cholesterol Lowering Activity of Various Edible Oils

{(+) increase, (-) decrease in Cholesterol Level}

Human trials conducted by the National Institute of Nutrition,
Hyderabad, have confirmed significant reduction in total cholesterols
particularly the triglyceride levels by using Rice Bran Oil as compared
to conventional cooking oils.
(Source: Nutritive Value of foods, National Institute of
Nutrition_
In India, Rice Bran Oil is the most important oil among the non-
conventional oils in terms of its potential to augment the availability
of oils. Full realization of its potential would help in reducing the gap
between demand and supply of indigenous edible oils in the Indian
market. This miracle product is available in the markets of northern,
eastern & southern regions of India. In western India this oil is
launched by some companies. It is available in consumer packs in
Mumbai & its suburban areas. There is a lot of awareness in
Government & industry circles about the goodness of this oil. But
there is less awareness among the consumers about this oil as 'Heart

28
Friendly Health Oil.'

Finally, in today's "Health Is Wealth" scenario, this wonderful "Heart

friendly" cooking is the new way to effective heart care. Its prolonged
use reduces the risk of Coronary Heart Disease (CHD) in humans by
reducing total cholesterol & triglycerides. 1t also has anti-cancer
properties which help in all-round health. The need of the hour is to
promote this oil as 'Health Oil' in India with the help of the
Government, industry & other associated agencies. Television,
electronic media & press can play a major role in its popularity as
"Health Oil' for the masses.

Family physicians, dieticians & health experts will be useful as

important members of our society in their guidance to the common
man about the choice of cooking oil to be used in future. Easy
availability of RBO , corn oil and soya bean oil at the village level in
consumer packs will help in promoting the better health of our
people, thereby turning every house in India into a 'Happy Home’ and
blend with corn oil .

REFERRED RESEARCH ARTICLES

• Blending of oils to enhance nutritional value of edible oils”,

Study conducted by “Dr Shubadra Sheshadri
NIN, Hyderabad, 2007)
• Benefits of rice bran oil by study conducted on rice bran oil by
B.V.Mehta, Executive Director, The Solvent Extractors'
Association of India, Mumbai
• Types of oils and effect on cholesterol level, study conducted by
Dr K.Mani , National Institution of Nutrition

29
CHAPTER
-4
RESEARCH METHODOLOGY

RESEARCH METHODOLOGYDue to increase health

awareness there is need of coming oil in consumer market
with healthy combination of oil, so company had plan to
come with ”blend oil “(admixture of two oil for better
health). Hence there is need of market avaibility of blend
so that consumers have choice to select healthy blend.

PURPOSE OF STUDY

30
Purpose of the study is exploring future in consumer market
through modularization (giving added value in products for
specified consumer segments). So we need to come with
new product lines which have better future i. e blending of
oils

POPULATION AND SAMPLING

AVIPL is having channels of distribution at Gujarat so we

need to market survey of our blend oil project for Gujarat
Population. Let say population size is N of Gujarat and if we
need to select sample size ‘n ‘which is part of ‘N. We have
to select sample which represents the “N”

In this study we had took sample size = 40 respondents

(women)

SAMPLE DESIGN

In this research a purposive sample of 40 respondents

(women) as consumers was drawn to include different age,
income and education from nutrition background and house
ladies of R.V desai road Baroda.

DATA COLLECTION

For collecting data structured questionnaire of multiple

choice questions were taken to survey following

• Basic Information

• Edible Oil Purchase preferences

• Health awareness of oil

• Blend oil acceptance and selective blend options

ASSUMPTIONS

• In this study we had assumed that our sample size “n”

is representative of our health conscious customers of
31
 “N”.
• Instrument has validity and is measuring the desired
constructs.
• Respondents have answer a survey truthfully

SCOPE
• Increase in per capita consumption and health
awareness will give added advantage
• Consumer driven branded oil had acquired shift @rate
of 7 % in last 5 years so much demand in consumer
segment.

LIMITATIONS

• Since sample size is very less hence it’s difficult to

relate their perception of edible oil and acceptance
• Sample size is selective being taken from educated
ladies and women from nutritional background.
• Some of the respondents have not filled up complete
questionnaire with preferences

32
CHAPTER-
5 OIL

TABLES AND GRAPH TYPE OF OIL

CORN OIL 9
USED

GROUNDNUT OIL 7
COTTONSEED OIL 4
Table 1 SOYABEAN OIL 7
SUNFLOWER OIL 3
RICEBRAN OIL 4
33 SAFFOWER OIL 0
OTHERS 2
CHANGING OILS 4
TOTAL 40
 TYPE OF OIL CONSUMED

Pareto of Edible oil used as a Cooking Medium

40 100

80
30

Percent
60
Count

20
40
10
20

0 0
TYPE OF OIL L L L L L L L r
OI OI OI OI OI OI OI he
RN ED UT AN AN ER ER Ot
CO NSE DN EBR ABE OW OW
O N C Y L F
TT OU RI SO NF SA
F
CO GR SU
Count 9 7 7 4 4 4 3 2
Percent 22.5 17.5 17.5 10.0 10.0 10.0 7.5 5.0
Cum % 22.5 40.0 57.5 67.5 77.5 87.5 95.0 100.0

From the pareto , we can say that people prefer corn oil
followed by cottonseed oil, groundnut oil, rice bran oil
and others.

• We can thus project that if we include corn oil as

base blend consumer may accept blend.

Table- 2 DECISION OF CHANGING OIL

34
 CONSUM
REASON ERS
HEALTH AWARENSS 17
RECOMMENDATION 5
CHANGE IN PRICE 18
OTHER 2
TOTAL 40

Pareto Chart for Reason of Changing Oil

40 100

80
No.of Consumer

30

Percent
60
20
40
10
20

0 0
Reason
SS N
IC
E er
IO th
EN T PR O
AR DA IN
AW EN E
M NG
TH OM A
AL C CH
HE RE
Count 18 15 5 2
Percent 45.0 37.5 12.5 5.0
Cum % 45.0 82.5 95.0 100.0

From the above pareto chart we can say that consumer

may change the oils when there is health awareness,
followed by recommendation, change in price.

35
Table-3 PURCHASE OF EDIBLE OIL IS BASED

PURCH
FACTORS ASE
BRAND NAME 4
TYPE OF OIL 10
BRAND + TYPE OF OIL 6
TYPE OF OIL AND PRICE 20
TOTAL 40

Pareto Chart for Purchasing Edible Oil

40 100

80
30

Percent
Count

60
20
40
10
20

0 0
FACTORS E L L E
M OI OI IC
NA OF OF PR
D D
AN PE PE AN
BR TY TY IL
+ O
D OF
AN
BR PE
TY
Count 20 10 6 4
Percent 50.0 25.0 15.0 10.0
Cum % 50.0 75.0 90.0 100.0

From the pareto we can conclude that people are

purchasing oil based on brand name followed by type of
oil, brand and type of oil and brand name. Hence we
need to come up with blend considering price as a topic
priority.

36
Table-5 ON WHAT BASIS CONSUMERS MAY PREFER BLEND OIL

PREFERE
FACTORS NCE
HEALTHY 14
ECONOMICAL 14
GOOD IN TASTE AND
FLAVOUR 10
OTHER 2
TOTAL 40

Pareto Chart to Prefer Blend Oil

40 100

30 80

Percent
Count

60
20
40
10 20
0 0
FACTORS r
AL Y
UR he
IC TH Ot
M AL
AVO
ONO HE FL
D
EC AN
E
AST
T
IN
OD
GO
Count 14 14 10 2
Percent 35.0 35.0 25.0 5.0
Cum % 35.0 70.0 95.0 100.0

From the above table we can say that consumer

preferences is a oil which should be economical also and

37
healthy also followed by taste hence we need to come
blend considering this factors

Table-6 Ranking Blend with preferences.

PREFERENC
BLEND RANK E
HIGH MEDIU LEA
1 2 3 4 5 6 LY M ST
CORN OIL +
GROUNDNUT OIL 4 6 8 10 6 6 4 6 6
CORN OIL +
COTTONSEED OIL 2 3 5 9 10 11 2 3 11
CORN OIL +
SUNFLOWER OIL 8 5 6 10 5 6 8 5 6
CORN OIL + SOYABEAN
OIL 14 14 7 2 2 1 14 14 1
CORN OIL + RICE BRAN
OIL 11 11 7 7 3 1 11 11 1
CORN OIL + PALM
KERNEL OIL 1 1 7 2 14 15 1 1 15

38
 Ranking For Combination of Corn and Rice Bran oil

40 100

80
30

Percent
60
Count

20
40

10
20

0 0
Rank 1 2 3 4 5 Other
Count 11 11 7 7 3 1
Percent 27.5 27.5 17.5 17.5 7.5 2.5
Cum % 27.5 55.0 72.5 90.0 97.5 100.0

Pareto 6.a

39
 Ranking for Corn and SOYABEAN OIL

40 100

80
30

Percent
60
COUNT

20
40

10
20

0 0
RANK 1 2 3 4 5 Other
Count 14 14 7 2 2 1
Percent 35.0 35.0 17.5 5.0 5.0 2.5
Cum % 35.0 70.0 87.5 92.5 97.5 100.0

Pareto 6.b

From the above table and Pareto 6.a and Pareto 6.b we
can judge that consumers prefer the blend of corn and
Soyabean and blend of corn and rice bran with range of
1 to 3 rank.

40
CHAPTER 6
CONCLUSION AND RECOMMENDATION

41
CONCLUSIONS

AVIPL had decided to come up with blend to explore business

in consumer market pertaining to current scenario towards
packed oil.

Basic Blend decision:

Basic blend one mixture will be “Corn Oil, because company at

present have crushing unit of corn oil whereas other edible oils
are imported and refined.Price difference for company for crude
oil and refining is Rs 7-10 / lire compare to crushing and
refinining. Moreover it also give advantage for giving excellence
in sell of by products.

Market Survey decision

According to survey done of blend oil it shows that people had

given preferences for blend of corn with Soyabean and rice
bran oil pertaining to price and health benefits we had decide
to work on this combination.

Standard Nutrition Facts of different oils

42
If we look at the composition of the various vegetable oils commonly
used in India, we shall find that no single oil could meet the
requirement of these recommendations but Rice bran oil & corn oill
are closest to the recommendations.
Cholesterol Lowering Activity of Various Edible Oils
EXHIBIT-1 ( Cholesterol level reduction & % of fatty acid of different oils)

Fatty Acids Weight (%)

Cholesterol Oil Antioxidants
Edible Oil SFA MUFA PUFA
Level
Safflower 16 Mustard Oil /
6 67 27 Tocopherols
Rapeseed Oil
Sunflowe
12 Sunflower Oil 12 38 50 Tocopherols
r
Cottonse Safflower Oil 10 15 75 Tocopherols
O
ed Soyabean Oil 16 24 60 Tocopherols
Groundnut Oil 20 50 30 Tocopherols
+3
Soybean Rice Bran Oil 20 45 35 Tocopherols
Sesame +2 Maximum
Corn Oil 12 29 58.2
Corn -15 possible
Rice Bran -17 about above below Maximum
Recommended
33% 33% 33% possible
Groundn
+5
ut
Source: Nutritive value of Indian foods , NIN), Note: (+) increase, (-)
decrease in Cholesterol Level
Decision of blend:

Corn oil with Soyabean oil.

Corn Oil with Rice bran oil.

Nutritional analysis

Based on the fatty acid composition of the blends

proportion of S: M: P calculated showed that no blend had
achieved the ideal ratio of 1:1:1. Our result indicated tends
to nearest value since government regulation order for
blend allows only two blends not less than 20% of one type
so we were not able to manage that ratio.

Nutrition ratio Derived from the blend were tested based on

standard value of fatty acid by American Health Association
which is as below

BLEND OF CORN AND SOYABEAN OIL

43
 BLEND OIL AMT SFA MUFA PUFA
Corn Oil 60 7.68 17.4 34.92
Soyabean 40 6.4 9.6 24
ACQUIRED 14.
BLEND 100 08 27 58.92
IDEAL RATIO 99 33 33 33
(VALUES BASED ON EXHIBIT-1 )

Table interpretation:Based on Exhibit-1 we had

calculated blend with 60% of corn oil and 40% of soyabean
oil and based on that we have calculated values of
Saturated fatty acid ( SFA), Mono Unsaturated fatty acid
( MUFA) and Poly Unsaturated fatty acid (PUFA) and tried to
compared value with standardized value .

As mention earlier no two oil can bring ideal ratio and more
than 2 oil blend is not allowed by government hence we had
considered cosumer preference and cost benefit and thus
resulted to come up with blend of corn and soyabean with
the ratio 60% and 40% respectiviely.

BLEND OF CORN AND RICE BRAN OIL

BLEND OIL AMT SFA MUFA PUFA

Corn Oil 30 3.84 8.7 17.46
Rice Bran Oil 70 14 31.5 24.5
ACQUIRED 17.
BLEND 100 84 40.2 41.96
IDEAL RATIO 99 33.3 33.3 33.3

Table interpretation:
Based on Exhibit-1 we had calculated blend with 30% of
corn oil and 70% of ricebran oil and based on that we have
calculated values of Saturated fatty acid ( SFA), Mono
Unsaturated fatty acid ( MUFA) and Poly Unsaturated fatty
acid (PUFA) and tried to compared value with standardized

44
value .

As mention earlier no two oil can bring ideal ratio and more
than 2 oil blend is not allowed by government hence we had
considered consumer preference and cost benefit and thus
resulted to come up with blend of corn and rice bran with
the ratio 30% and 70% respectively.

RECOMMENDATION
• REDUCE DEPENDENCY ON IMPORTS

SEA said import duty on crude edible oils should at

least be raised to 10 per cent from nil at present, while
those on refined cooking oils should go up to 17.5 per
cent from the current 7.5 per cent. Rise in import duty
will definitely affect to derive basic prices, hence rise
in import can be potential threat for refining.

INDEPTH ANALYSIS OF DEMAND AND SUPPLY OF OIL

should be studied to have effective price.

• Study of blend oil on human group with comparison of

45
 experimental and control group shall be done to know
actual difference on decrease cholesterol level, and
then market communication can achieve excellence.

• Marketing based on differential advantage ( Healthy

blend) should be done along with future expansion
strategy for constant supply of product with cost
benefit rates for company as well as consumers.

46
BIBLIOGRAPHY

NEWSPAPER • Food and processing world, 7th June

2008.
• Economic times, 2 Jan 2009
• Commodity News, 22nd Feb 2010

BOOKS
• Bailey's Industrial Oil and Fat Products,
Edible Oil and Fat Products: Processing
Technologies, Volume 11,By
Fereidoon Shahidi, Alton Edward
Bailey, Fereidoon Shahidi
Diet therapy By “Sri laxmi”.

• Role of fat in diet, National Institution

of Nutrition, Hyderabad.

JOURNALS • April 2010, “ASIA & Middle East FOOD

TRADE JOURNAL
• SEA, Monthly magazine , Jan 2010,
March 2010.
ANNUAL REPORT Annual report of 2009 to 2010 Department
of Food and Public distribution
MAGAZINES Food and Nutrition, Feb 2010
websites www.financialexpress.com
www.sea.com
www.americanheartassociation.com
www.worldoil.com

47
 MARKET SURVEY FOR BLENDED EDIBLE OIL

QUESTIONAIRE

NAME OF COMPANY: ASHWIN VANASPATI IND PVT LTD

STUDY CONDUCTED BY: NEHA PITHWA (MBA MRKTG)

ABOUT QUESTIONAIRE:

This questionnaire is about “blend Oil”. Blend oil means

mixture of two or more oil.

NEED OF STUDY: To study acceptance of blend oil and

preferences of blend from consumers (women) and retailers.

Note: Purpose of this questionnaire is just for study purpose

and for knowing perception regarding selecting edible oil for
cooking. All data will be keeping confidential.

BASIC INFORMATION

1. NAME:

2. Age:

3. EDUCATION: A) Diploma B) Graduate C) Post Graduate

D) Masters

4. TYPE OF FAMILY? A) Nuclear family B) Joint family

5. FAMILY INCOME / ANNUM

A) Less than 1.5 lakh B) Between 1.5 lakh to 3 lakh

C) Between 3 lakh to 5 lakh D) More than 5 lakh

6. MONTHLY INCOME SPEND ON GROCERY

A) Less than 4000 RS B) 4000 TO 5000 RS

C) 5000 TO 6000 RS D) More than 6000 RS

48
7. WHAT IS AVERAGE WEIGHT OF YOUR FAMILY?

A) Underweight B) Normal weight

C) Overweight D) Obese

EDIBLE OIL AS A COOKING MEDIUM

8. WHICH TYPE OF EDIBLE OIL IS USED AT YOUR HOME?

A) Corn Oil B) Groundnut Oil C) Cottonseed Oil

D) Soyabean E) Sunflower Oil F) Rice bran Oil

G) Safflower Oil G) Others H) Changing

Oils

9. HAVE YOU CHANGED OIL IN LAST 5 YEARS? Y/N

10. WHICH TYPE OF OIL WAS USED AT YOUR HOME

BEFORE 5 YEARS?

A) Corn Oil B ) Groundnut Oil C)

Cottonseed oil

D) Soyabean Oil E) Sunflower Oil F) Rice bran

Oil

G) Safflower G) others H) same as today

11. DECISION OF CHANGING OIL WAS TAKEN AS

Corrective measure because of health problem

Preventive measure for avoiding future health

problem

49
13. DECISION OF NOT CHANGING OIL IS BECAUSE OF

A) Taste and Flavour B) Unwillingness for trying other

Oil

C) Traditional Belief D) If other please specify__________

14. DECISION OF CHANGING OIL IS BECAUSE OF

A) Health awareness B) ADVICE OF DOCTOR/

DIETICIAN

C) Change in price of oil D) If other Please

specify__________

15 DECISION OF PURCHASING OIL IN YOUR HOME IS

DONE BY

A) Husband B) Wife

C) Children D) Others

16. RANK YOUR PRIORITY FOR CHOOSING MOST

PREFEREED EDIBLE OIL (RANK FROM 1 TO 7 IN THE
BRACKET)

( ) Brand name

( ) Price

( ) Advertisement

( ) Taste and flavor

( ) Recommendation

( ) Nutritional attributes

( ) Promotional offers

50
17 DO YOU SELECT EDIBLE OIL BASED ON COLOUR
DENSITY AROMA?

Y/N

18. PURCHASE OF EDIBLE OIL IS BASED ON

A) Brand Name B) Type of edible Oil

C) Brand name associated with type of oil D) Type of

Oil and price

HEALTH AWARENESS REGARDING

EDIBLE OIL
19. TICK FACTOR RESPONSIBLE FOR INCREASE IN
CHOLESTEROL IN BODY

A) Type and amount of oil B) Lack of exercise C)

Overweight

D) Low fibre E) Low antioxidants F) None

of the above

G) All of the above G) No idea

20 CHOLESTEROL INCREASE IN BODY IN RELATION TO

EDIBLE OILS IS BASED ON

Amount of oil

% of fatty acid combinations of oil

All of above

None of above

21 Rank which oil is healthy oil according to you?

( ) Corn oil

51
 ( ) Groundnut oil

( ) Cottonseed oil

( ) Sunflower oil

( ) Soyabean oil

( ) Rice bran oil

( ) Olive oil

( ) Mustard oil

( ) Rapeseed oil

( ) Safflower Oil

22 BUYING OF EDIBLE OIL IS:

A) Monthly B) Every 3 months C) Every 6

months D) Yearly

BLEND OIL PREFERENCES

23 ONE SHOULD NOT USE SAME TYPE OF EDIBLE OIL…….
A) True B) False

24 HAVE YOU HEARD ABOUT BLEND OIL (MIXING TWO

OILS) Y/N

25 IF YES WHAT IS SOURCE OF INFORMATION?

A) Doctor/Dietician B) Magazine C) Advertisement

D) Retailers

52
26 ON WHAT BASIS YOU MAY PREFER BLEND OIL?

Healthy

Economical

Good in taste and flavor

High shelf life

27. Mark the combinations, Rank & prioritize amongst

the following table of blend oil.
Sr COMBINATI COR RAN PREFERANCE
. ON OIL N K
N OIL
o.
MOST INDIFFERE LEAST
PREFER NT PREFFER
ED ED
1 Groundnut
oil

2 Cottonseed
oil

3 Sunflower oil
4 Soyabean oil
5 Safflower oil
6 Rice bran Oil
7 Palm kernel
Oil

53
28 MARK THE PREFERENCES FROM BELOW MENTION
OPTIONS FOR BLEND OIL
Aspects
Sr.
No Combinations
. Price Taste & Shelf Life Brand
Flavor
1 Corn Oil +
Groundnut oil
2 Corn Oil
+Cottonseed oil
3 Corn Oil +
Sunflower oil
4 Corn Oil +
Soyabean oil
5 Corn Oil +
Safflower oil
6 Corn Oil + Rice
bran oil
7 Corn Oil+Palm
kernel oil

29 DO YOU FEEL BLEND OIL WILL BE HEALTHY THAN USING ONE

OIL? YES / N0

THANKS

54