Edible oil maker Ruchi Soya Industries has targeted to double its turnover to ₹50,000 crore in three years, by launching new products and reaching out to untapped markets.

The company plans to launch a series of edible oils such as soyabean, kachhi ghani mustard, rice bran, sunflower, groundnut and cottonseed oil under its value-for-money Mahakosh brand. Satendra Aggarwal, Chief Operating Officer, Ruchi Soya Industries, told BusinessLine the response for its recently launched sunflower oil Sunrich was very encouraging. The product was launched in Tamil Nadu, Karnataka and Andhra Pradesh, and the company plans to launch it in Maharashtra, and the Mahakosh rice brand oil during Diwali.

Growing demand

The market for sunflower oil in India is estimated at ₹18,000 crore with the southern region accounting for 70 per cent market share.

The annual demand for edible oil in Tamil Nadu works out to about 2.3 lakh tones, with sunflower oil contributing over 60 per cent.

“Our market share in the packed edible oil segment has increased to 19 per cent from 14 per cent in the last three years. We expect our market share to touch 25 per cent in the next three years,” he said.

Ruchi has a crushing capacity of 4 mt and edible oil refining capacity of 3 mt. Ruchi expects retail oil prices to remain stable with a downward bias during the festival season, despite the bearish trend in soybean prices on the back of a bumper crop in India and the US.

“We have already dropped soy oil prices to ₹58 a kg from ₹75 a kg pack. Similarly, sunflower, mustard and palm oil prices are down by ₹15 to ₹20 in the last two months,” said Aggarwal.

Soyabean prices have come down to ₹30 a kg from ₹46 a kg in June, and may drop further with the start of the arrival season this month.

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