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Olive oil brand from the Modi Naturals’ stable is set to create a splash in the country’s edible oil market, which is currently ruled by variants of rice bran, mustard, soya, saff, and sunflower.
Modi Naturals, as part of its retail strategy, has priced its olive oil brand Oleev at Rs 155 a litre, which is almost at par with premium blended edible oil offerings such as Sundrop and Saffola.
Olive oil, used mostly in exotic cuisines, is traditionally priced a few times above the other offerings in the market.
Oleev, launched pan-India in July this year, has four variants.
While the sub brand Oleev Active will compete with sunflower oil brands, other variants, such as Promace, Extra Virgin and Extra Lite priced between Rs 300 and Rs 800, will be placed in the niche segments, said Akshay Modi, Executive Director, Modi Naturals.
Over the last few years, the demand for olive oil has been growing in India. Brands such as Borges, Figaro and Leonardo have been competing with premium oil brands in the Rs 1,000-crore health and wellness category. The olive oil market in itself is placed between Rs 250 crore and 300 crore.
Delhi-based Modi Naturals reported a turnover of Rs 196 crore last fiscal. Nearly, 30 per cent of its turnover is from the retail segment. Its only manufacturing facility is in Uttar Pradesh (UP).
The company, previously a contract producer for other brands, entered the retail segment with its mass market mustard oil brand Tarai Shudh which is currently available in UP only.
According to Modi, the company will spend around Rs 100 crore over a period of three years to put in place its sales and distribution network and marketing initiatives.
The company has also invested around Rs 3-4 crore in packaging, research and development and quality control facilities.
It has already tied up with major departmental stores such as Spencer’s, More, Best Price, Food World and Big Bazaar. It has also partnered with distribution chains such as Metro Cash and Carry and Reliance Market.
Plans are also afoot to launch a television commercial by September.
abhishek.l@thehindu.co.in
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