Financial Daily from THE HINDU group of publications
Wednesday, Apr 03, 2002
Branded oils may boost Oomerbhoy turnover
MUMBAI, April 2
R.R. OOMERBHOY Pvt. Ltd is expecting more than two-fold increase in its turnover during the 2002-2003 (April-March) fiscal at around Rs 55 crore, primarily on account of the company's foray into branded edible oils.
The contribution of edible oils to the company's turnover is expected to go up to 75 per cent during 2002-2003 from 60 per cent in 2001-2002.
Having entered into the area of branded edible oils, the company was in the process of expanding its product offerings, Mr Rashid S. Oomerbhoy, Chairman of the company, said.
Mr Oomerbhoy was one of the promoters of the erstwhile Ahmed Oil Mills, currently mired in a family dispute.
In the segment of branded edible oils, the company has Postiano refined groundnut oil, Til Dil filtered sesame oil and Mastman refined mustard oil.
The company plans to introduce refined sunflower oil and filtered groundnut oil as variants of Postiano.
Mr Oomerbhoy has independently re-entered the edible oils business through his company R.R. Oomerbhoy Pvt Ltd.
"Product acceptance has been very good'', said Ms Sunita Gaur Shamim, Group Product Manager, R.R. Oomerbhoy. Currently, the company has distribution strength of one lakh retail outlets.
For Postiano, the company has taken two plants on lease at Silvaasa and Pune. "We may buy those plants at a later stage,'' Mr Oomerbhoy said.
He agreed that the groundnut crop was not very good this season. Nevertheless, procurement had not been a problem except during the riots in Gujarat in March.
Despite the slowdown in the economy, the company has been able to garner sufficient sales in all its brands. "We have been exporting to some of the Gulf countries. We are looking at new markets such as Africa and Australia,'' Mr Oomerbhoy said.
The company has launched a marketing campaign, which includes a direct one and a recipe-based one. It is also tying up with cookery author, Ms Tarla Dalal, for branding and product dissemination in her books. Besides, the company has tied up with Wonderman Cato Johnson, a direct market agency.
Currently, R.R. Oomerbhoy has a marketing tie-up with Bertolli International for marketing and distributing Bertolli olive oil in India. The company also distributes imported pasta and sauces.
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