Dhanaa Full Project - Copy
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CHAPTER 1 1. INTRODUCTION 1.1 Industry profile Edible Oil Industry in IndiaClimatic conditions in India favor growing a variety of oilseeds. On the demand side, a growing population and vastly varied dietary habits have ensured a thriving market for edible oil in the country. In fact, there is a substantial demand overhang, which is expected to continue for some years. At present, this is offset by imports that cater to almost half of the total domestic consumption. With cheap imports threatening to cripple the domestic industry, the government is walking a tightrope between filling the demand supply gap and the political need to keep the domestic industry in good health. Unorganized, medium and small players dominate the industry. An average Indians yearly edible oil requirement has gone up from 7.0kg in 1996-97 to 11.8Kg in 2000-01. Despite the variety of oilseeds grown in India, the country imports a substantial quantity of edible oil which also works out cheaper. Allied factors contributing to imports are the higher cost of cultivation in India and uneconomic oil extraction systems. Oil seeds in India account for around 5.0 percent of the Gross National Product (GNP) and 14.0 percent of the countrys area under cultivation of crops. Castor, Groundnut, Linseed, Niger, Rapeseed, Mustard, Safflower. Sesame and sunflower are some of the major oil seeds grown. India produces 10 percent of the worlds oil seeds, but has a low productivity of around 850900kg per hectare (compared to a world average of around 1,100-1,350 kg per hectare). The amount of oil extracted from the seed varies with the type and quantity of seed. In many cases, the oil recovery rate is upwards of 30.0 percent with Sesame for a high 45.0 percent. Domestic consumption of edible oils has been growing at 4.0-5.0 percent a year. The consumption in 2001-02 was around 25.75 million tons. Non-packaged oils account for nearly 50.0 percent of consumption in both urban and rural markets. In the remaining 50.0 percent contributed by packaged oils, branded oils constitute a small portion of approximately 10.0-15.0 percent.
Importance of edible oils in the Countrys Economy:Oil seeds and edible oils are two of the most sensitive essential commodities. India is one of the largest producers of oilseeds in the world and their sectors occupies an important position in the agricultural economy and accounting for the estimated production of 28.21 million tones of nine cultivated oil seeds during the year 2007 2008. India contributes about 6-7% of the world oilseeds production. Export of oil meals, oil seeds and minor oils has increases from 5.06 million tons 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 oil meal export.
Types of oil commonly in use in India:India is fortune in having a wide range of oilseeds 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 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. In addition, oilseeds of tree and forest origin, which grow mostly in tribal inhabited areas, are also a significant source of oils. 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 us under (In lakh Tonne) Oil year (Nov-Oct) 2000-2001 2001-2002 2002-2003 Production of oilseeds 184.40 206.63 148.39 Net availability of edible oils from all domestic sources 54.99 61.46 46.642
Consumption of edible oils(from domestic and import sources) 96.76 104.68 90.29
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 Source:
251.86 243.54 279.79 242.89 297.55
71.40 72.47 83.16 73.70 86.54
124.30 117.89 126.04 115.87 142.62
(i) Production of oilseeds : Ministry of Agriculture (ii) Net availability and consumption of edible oils: Directorate of Vanaspathi, Vegetable oils & Fat.
Consumption Pattern of Edible Oils In India:India is a vast country and inhabitance of several of its regions has 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 tons 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, never oils like soya bean, 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. Of late, things have changed. Through technological means such as refining, bleaching and deodorization, all oils have been rendered practically colorless, odorless and tasteless and, therefore, have become easily interchangeable in the kitchen. Newer oils which were not known before have entered the kitchen, like those of cottonseed, sunflower, palm oil or its liquid fraction ( palmolein) soya bean and rice bran. These tend to have a string and distinctive taste preferred by most traditional customers. The share of raw oil, refined oil and vanspati in the total edible oil market is estimated at 35%, 55% and 10% respectively3
Major Feature of edible Oil EconomyThere are two major features, which have very significantly to the development of this sector. One was the setting up of the technology mission on oilseeds in 1986.this gave a thrust to Governments 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 tons in 1986-87 to 24.8 million tons in 1998-99. There was some setback in 1999-2000 because of the unseasonal rain followed by inclement weather. The production of oilseeds declined to 20.7 million tons in 19992000. However, the oilseeds production went up to 27.98 million tons in 2005-06 and was 24.29 million tons during 2006-07 oil years. As per the third advance estimate by ministry of Agriculture dated22.4.08 the production of nine major oilseeds in estimated to be about 28.21 million tons 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 of liberalization under which the governments economic policy allowing greater freedom to the market open market and encourages healthy competition and regulations have been relaxed resulting in a highly competitive market dominated by both domestic and multinational players.
1.2 company profileThe year was 1943. Four years before India got independence, a small independent step toward a giant leap was made in the cooking oil industry, at Virudhunagar, a town in the south of India. The man behind the step was Mr. V.V.Vanniaperumal who had an exemplary track record in the business world of Tamil Nadu. Thanks to his hard work and commitment, an empire was literally built in the edible oil business. His son, Mr.V.V.V.Rajendran carried forward the torch lit by Mr.Vanniyaperumal and founded Idhayam group in 1986 with a sole objective to deliver quantity and healthy edible oils to the people. The name Idhayam means heart in Tamil, an Indian language. Idhayam products are friendly and close to the hearts of millions of customers in India and abroad, quite appropriate to our brand name. It was Mr.Rajendran who brought a sea change in the sesame oil business by launching the product in a new consumer packing in the brand name IDHAYAM. Mr.Rajendrans demise in 1994 witnessed his eldest son, V.R.Muthu taking the helm of affairs, aptly accompanied by his brothers. V.R.Sathyam and V.R.Thendral. There was no looking back ever since the triumphant trio assumed charge and the company is now a name no reckon with the cooking oil industry in India. One of the leading players in the industry, Idhayam provides superior standard filtered sesame oil and peanut/groundnut oil, which doesnt undergo refining process. Doctors and scientists across the globe consider refining edible oils to be harmful for health. Commitment to consistent research and development (R&D) to provide customers with high quality and innovative products has brought pinnacles to Idhayam group. A preferred manufacturer and supplier of edible oils (sesame and peanut oil), Idhayam group has carved a niche for itself by reaching the households of millions in several European, Asian and African countries. Quality has always been the watchword of Idhayam Group and ISO 9001:2008 certificate is a testimony to it.
We have read in fables that when the words Open Sesame were uttered, the doors to treasure opened. No wonder why Sesame oil too is considered opening the doors of healthy living. The delightfully nutty flavor and aroma of sesame oil is a distinctive characteristic of Asian cooking. Use of sesame oil in marinades, vinaigrettes, sauces, and dressings assures good taste and go