EDIBLE OILS IN INDIA

Euromonitor International
November 2018
EDIBLE OILS IN INDIA Passport I

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Rising Health Awareness Leads Consumers To Switch To Olive Oil and Rapeseed Oil .......... 1
Lower Price Point Continues To Support High Consumption of Palm Oil in India .................... 1
Blended Oils Pose Growing Competitive Threat To Olive Oil ................................................... 2
Competitive Landscape ................................................................................................................ 2
Adani Overtakes Ruchi Soya To Claim the Overall Lead in Edible Oils.................................... 2
Ruchi Soya Set To Be Acquired by Adani ................................................................................ 2
Other Edible Oils Gains Momentum As Companies Introduce New Products .......................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Edible Oils by Category: Volume 2013-2018 .................................. 3
Table 2 Sales of Edible Oils by Category: Value 2013-2018 ..................................... 3
Table 3 Sales of Edible Oils by Category: % Volume Growth 2013-2018 ................. 3
Table 4 Sales of Edible Oils by Category: % Value Growth 2013-2018 .................... 4
Table 5 NBO Company Shares of Edible Oils: % Value 2014-2018 ......................... 4
Table 6 LBN Brand Shares of Edible Oils: % Value 2015-2018 ................................ 5
Table 7 Distribution of Edible Oils by Format: % Value 2013-2018 ........................... 6
Table 8 Forecast Sales of Edible Oils by Category: Volume 2018-2023 ................... 6
Table 9 Forecast Sales of Edible Oils by Category: Value 2018-2023 ...................... 6
Table 10 Forecast Sales of Edible Oils by Category: % Volume Growth 2018-
2023 ............................................................................................................. 7
Table 11 Forecast Sales of Edible Oils by Category: % Value Growth 2018-
2023 ............................................................................................................. 7

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EDIBLE OILS IN INDIA Passport 1

EDIBLE OILS IN INDIA

HEADLINES
 Edible oils current value sales grow by 22% in 2018 to reach INR1.6 trillion
 Blended edible oils could pose a serious challenge to olive oil due to their healthy properties
and significantly lower unit price
 Olive oil and rapeseed oil are the most dynamic performers in current value growth terms,
with each posting an increase of 28%
 Overall average unit price for edible oils increases by 6% in current value terms
 Adani Group leads edible oils in 2018 with a value share of 7%, and announces plans to
acquire Ruchi Soya Industries Ltd
 Edible oils value sales at constant 2018 prices are expected to record a CAGR of 14% over
the forecast period to reach INR3.1 trillion in 2023

PROSPECTS

Rising Health Awareness Leads Consumers To Switch To Olive Oil and

Rapeseed Oil
The rising incidence of conditions like obesity and high cholesterol in India is increasingly
leading consumers to choose healthier and more nutritious foods. This trend, which is strongest
in urban areas, continued to see many consumers shift to healthier edible oils categories such
as olive oil and rapeseed oil in 2018. To tap into this trend, manufacturers such as Borges India
Pvt Ltd launched new olive oil products during the year. Similarly, over 2016-2017 olive oil
witnessed the entry of new players, including Rajasthan Olive Cultivation Ltd. Such companies
have also recently invested in in-store promotions and other marketing activities to highlight the
benefits of healthier product types, which include the potential to help lower blood cholesterol. At
the same time, modern grocery retailers like Hypercity have allocated more shelf space to
healthier edible oils and allowed manufacturers to run in-store promotions for these products.
The trend towards healthier edible oils will remain strongest in first-tier cities over the forecast
period. However, rising health awareness should ensure that it also becomes more visible in
smaller cities and even rural areas. That said, it is expected that a large proportion of the Indian
population will continue to prefer mustard oil over other product types. Mustard oil is traditionally
widely used in Indian cooking, and many consumers believe it enhances the taste of food.

Lower Price Point Continues To Support High Consumption of Palm Oil

in India
Palm oil remained the cheapest option within edible oils in India in 2018, and saw average
unit prices increase by less than most other categories. This ensured it continued to find a huge
consumer base among the country’s lower-income population. Due to its lower cost, palm oil is
also widely used by foodservice operators, particularly small local fast food outlets offering
dishes ranging from noodles and chilli chicken to samosas.
While palm oil consumption is high, this category has historically lagged behind in terms of
product promotion. However, recent years have seen the launch of special awareness
campaigns intended to educate consumers on the use and nutritional properties of palm oil. For
instance, in 2017 the Malaysian Palm Oil Council signed a memorandum of understanding with

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the Mumbai Dabbawala Association to raise awareness of palm oil among Indian consumers.
Together with its affordability, such campaigns should continue to support growth in palm oil
consumption over the forecast period. However, demand in the category is likely to be restricted
somewhat as rising health awareness leads more consumers to switch to healthier product
types such as olive oil and sunflower oil.

Blended Oils Pose Growing Competitive Threat To Olive Oil

While the value share of olive oil within edible oils remained low in 2018, the category
expanded strongly thanks to rising health awareness among Indians. However, because the
average unit price for olive oil remained the highest among all edible oils categories, it continued
to face a considerable challenge from blended oils products. The per unit cost of such products
is approximately one seventh that of olive oil, which makes them very attractive to consumers
seeking healthier options. Popular health-oriented blended oils brands include Saffola and
Fortune, and a number of manufacturers have recently launched new products of this type. For
instance, in October 2018 Cargill India Pvt Ltd launched NatureFresh Acti Heart, which is made
from a blend of canola oil and rice bran oil. Price remains a highly influential factor in edible oils
purchasing decisions, and together with rising health awareness this should lead more
consumers to favour blended oils over olive oil during the forecast period.

COMPETITIVE LANDSCAPE

Adani Overtakes Ruchi Soya To Claim the Overall Lead in Edible Oils
Adani Group, which offers a range of products under the Fortune brand, overtook Ruchi Soya
Industries to become the overall leader in edible oils in value terms in 2018. The company
continued to display strong double-digit current value growth thanks to the success of recent
efforts to increase awareness of the Fortune brand and strengthen its penetration in rural
regions. For example, over 2016-2017 Adani partnered with Paytm on an outdoor campaign to
promote Fortune Sunflower Oil. This promotion saw the company offer Paytm wallet cash of
INR30 and INR100 on purchases of 1-litre pouches and 5-litre jars, respectively. In 2018, Adani
hired OMD Mudramax to manage all of its brands in East and South India, and announced an
investment of INR7.5 billion to double the capacity of its edible oils refinery at Haldia in West
Bengal. In line with its focus on exploring avenues of inorganic growth, 2018 also saw the
company receive approval for an INR60 billion acquisition of Ruchi Soya. In addition, to bolster
its image as a producer of healthy and eco-friendly edible oils, the company announced plans to
start using recyclable packaging materials for its Fortune brand.

Ruchi Soya Set To Be Acquired by Adani

Despite a portfolio that includes well-established brands such as Ruchi Gold, Mahakosh,
Nutrela and Sunrich, Ruchi Soya recorded a sharp current value sales decline within edible oils
in 2018. This decline, which saw it fall from first to third in the rankings, was a direct result of a
steep drop in its top-line revenues over 2016-2017. The company’s operational efficacy was
significantly hampered by its high debt, which stood at approximately INR45.1 billion in 2017
and contributed to a dramatic decline in top-line revenues from its oils business. Moreover, its
capacity to reduce this debt was seriously weakened by its high exposure to the commodities
exchange for castor seeds, prices for which declined by almost 40% over 2015-2018. As a
result of these problems, by mid-2018 Ruchi Soya was on the verge of being acquired by Adani.
This acquisition will expand Adani’s footprint considerably, making it the largest edible oils
producer in India.

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Other Edible Oils Gains Momentum As Companies Introduce New

Products
Thanks to rising health awareness, other edible oils product types such as canola, groundnut,
coconut, rice bran and sesame oil are steadily gaining popularity in India. Manufacturers have
recently attempted to capitalise on this trend via TV advertising campaigns and new launches.
For instance, in 2018 Cargill launched Gemini Rice Bran Oil to appeal to health-conscious
consumers. Even smaller players were active in this regard, with Organic Oil launching a new
sesame oil product in 2018. However, it will take some time before other edible oils gain
mainstream popularity. This is especially the case in second- and third-tier cities and rural
areas, where health is not a high priority for most consumers in edible oils purchasing decisions.

CATEGORY DATA
Table 1 Sales of Edible Oils by Category: Volume 2013-2018

'000 tonnes
2013 2014 2015 2016 2017 2018

Olive Oil 7.4 9.8 11.4 12.7 13.9 14.9

Corn Oil - - - - - -
Palm Oil 2,009.5 2,374.7 2,779.7 3,234.8 3,770.0 4,353.1
Rapeseed Oil 480.9 640.9 851.2 1,130.6 1,502.6 1,808.9
Soy Oil 944.4 1,103.9 1,277.9 1,472.0 1,701.6 1,911.9
Sunflower Oil 532.3 640.4 767.0 915.3 1,086.7 1,222.8
Other Edible Oil 1,018.6 1,128.6 1,252.9 1,394.0 1,540.1 1,758.6
Edible Oils 4,993.1 5,898.2 6,940.0 8,159.4 9,614.8 11,070.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Edible Oils by Category: Value 2013-2018

INR bn
2013 2014 2015 2016 2017 2018

Olive Oil 5.7 8.1 11.8 16.0 22.2 28.5

Corn Oil - - - - - -
Palm Oil 191.2 236.9 291.2 357.3 439.5 532.8
Rapeseed Oil 60.1 84.6 117.8 166.5 236.7 303.0
Soy Oil 93.1 116.0 142.6 175.0 215.5 257.9
Sunflower Oil 68.8 89.0 111.6 139.5 175.0 209.4
Other Edible Oil 131.8 155.5 183.0 215.5 254.7 304.8
Edible Oils 550.6 690.1 857.9 1,069.7 1,343.6 1,636.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Edible Oils by Category: % Volume Growth 2013-2018

% volume growth
2017/18 2013-18 CAGR 2013/18 Total

Olive Oil 7.0 15.0 101.4

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Corn Oil - - -
Palm Oil 15.5 16.7 116.6
Rapeseed Oil 20.4 30.3 276.1
Soy Oil 12.4 15.1 102.4
Sunflower Oil 12.5 18.1 129.7
Other Edible Oil 14.2 11.5 72.7
Edible Oils 15.1 17.3 121.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Edible Oils by Category: % Value Growth 2013-2018

% current value growth

2017/18 2013-18 CAGR 2013/18 Total

Olive Oil 28.3 37.9 399.1

Corn Oil - - -
Palm Oil 21.2 22.7 178.6
Rapeseed Oil 28.0 38.2 404.0
Soy Oil 19.7 22.6 177.1
Sunflower Oil 19.7 24.9 204.5
Other Edible Oil 19.7 18.3 131.3
Edible Oils 21.8 24.3 197.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Edible Oils: % Value 2014-2018

% retail value rsp

Company 2014 2015 2016 2017 2018

Adani Group 6.1 6.6 7.1 7.4 7.0

Emami Ltd 6.1 5.9 5.7 5.6 5.5
Ruchi Soya Industries Ltd 10.8 9.9 8.6 7.5 5.3
Marico Ltd 4.5 4.0 3.6 3.2 2.9
Cargill India Pvt Ltd 5.6 4.8 3.8 2.8 2.8
Kaleesuwari Refinery 3.3 2.8 2.7 2.4 2.4
Pvt Ltd
Mother Dairy Fruit & 1.2 1.1 1.1 1.1 1.1
Vegetable Pvt Ltd
Agro Tech Foods Ltd 0.9 0.7 0.6 1.0 0.9
M K Agrotech Pvt Ltd 0.9 0.8 0.7 0.7 0.6
VVV & Sons 0.8 0.7 0.7 0.6 0.6
Patanjali Ayurved Ltd 0.4 0.4 0.4 0.4 0.4
Vijay Solvex Ltd 0.9 0.6 0.4 0.3 0.2
Consumer Marketing 0.2 0.2 0.2 0.1 0.1
India Pvt Ltd
Borges India Pvt Ltd 0.1 0.1 0.1 0.1 0.1
Minerva Agricola 0.1 0.1 0.1 0.1 0.1
Alimentare Srl
Bunge Agribusiness 4.1 0.3 0.3 0.1 0.0
India Pvt Ltd
R R Oomerbhoy Pvt Ltd 0.0 0.0 0.0 0.0 0.0
KS Oils Ltd 1.4 0.0 0.0 - -
Dalmia Continental Pvt - - - - -
Ltd
Godrej Hershey Foods & - - - - -

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Beverages Ltd
Others 52.5 60.9 63.8 66.6 70.0
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Edible Oils: % Value 2015-2018

% retail value rsp

Brand (GBO) Company (NBO) 2015 2016 2017 2018

Fortune Adani Group 6.6 7.1 7.4 7.0

Healhty & Tasty Emami Ltd 5.9 5.7 5.6 5.5
Ruchi (Ruchi Group) Ruchi Soya Industries Ltd 5.6 5.0 4.4 3.0
Saffola Marico Ltd 4.0 3.6 3.2 2.9
Gold Winner Kaleesuwari Refinery 2.8 2.7 2.4 2.4
Pvt Ltd
Mahakosh (Ruchi Ruchi Soya Industries Ltd 3.4 2.9 2.5 1.9
Group)
Gemini (Cargill Inc) Cargill India Pvt Ltd 2.7 2.0 1.5 1.5
Sundrop (ConAgra Agro Tech Foods Ltd - 0.5 0.9 0.9
Brands Inc)
Nature Fresh Cargill India Pvt Ltd 1.6 1.2 0.8 0.8
(Cargill Inc)
Sunpure M K Agrotech Pvt Ltd 0.8 0.7 0.7 0.6
Idhayam VVV & Sons 0.7 0.7 0.6 0.6
Dhara (National Mother Dairy Fruit & 0.6 0.6 0.6 0.6
Dairy Development Vegetable Pvt Ltd
Board)
Leonardo (Cargill Cargill India Pvt Ltd 0.4 0.4 0.4 0.5
Inc)
Patanjali Kachi Patanjali Ayurved Ltd 0.4 0.4 0.4 0.4
Ghani Mustard Oil
Scooter Vijay Solvex Ltd 0.6 0.4 0.3 0.2
Nutrela (Ruchi Group) Ruchi Soya Industries Ltd 0.3 0.3 0.3 0.2
Sasso (Deoleo SA) Minerva Agricola 0.1 0.1 0.1 0.1
Alimentare Srl
Figaro Consumer Marketing 0.2 0.1 0.1 0.1
India Pvt Ltd
Sunrich (Ruchi Group) Ruchi Soya Industries Ltd 0.2 0.2 0.2 0.1
Borges (Borges Borges India Pvt Ltd 0.1 0.1 0.1 0.1
International Group
SL)
Sweekar (Cargill Inc) Cargill India Pvt Ltd 0.1 0.1 0.1 0.1
Ginni (Bunge Ltd) Bunge Agribusiness 0.3 0.3 0.1 0.0
India Pvt Ltd
RRO R R Oomerbhoy Pvt Ltd 0.0 0.0 0.0 0.0
Double Sher KS Oils Ltd 0.0 0.0 - -
Kalash KS Oils Ltd 0.0 0.0 - -
Sundrop (ConAgra Agro Tech Foods Ltd 0.6 - - -
Foods Inc)
Leonardo Dalmia Continental Pvt Ltd - - - -
Godrej (Hershey Co, Godrej Hershey Foods & - - - -
The) Beverages Ltd
Sweekar Marico Ltd - - - -
Others Others 61.9 64.7 67.4 70.7
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

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Table 7 Distribution of Edible Oils by Format: % Value 2013-2018

% retail value rsp

2013 2014 2015 2016 2017 2018

Store-Based Retailing 100.0 99.9 99.9 99.9 99.9 99.9

- Grocery Retailers 100.0 99.9 99.9 99.9 99.9 99.9
-- Modern Grocery 5.8 6.0 6.3 6.5 6.8 7.0
Retailers
--- Convenience Stores - - - - - -
--- Discounters - - - - - -
--- Forecourt Retailers - - - - - -
--- Hypermarkets 2.7 2.9 3.1 3.3 3.5 3.7
--- Supermarkets 3.1 3.2 3.2 3.3 3.3 3.3
-- Traditional Grocery 94.1 93.9 93.6 93.4 93.1 92.9
Retailers
--- Food/drink/tobacco 2.5 2.6 2.6 2.7 2.7 2.7
specialists
--- Independent Small 87.3 87.0 86.6 86.3 85.9 85.7
Grocers
--- Other Grocery 4.3 4.3 4.4 4.4 4.5 4.5
Retailers
- Non-Grocery Specialists - - - - - -
-- Health and Beauty - - - - - -
Specialist Retailers
-- Other Foods Non- - - - - - -
Grocery Specialists
- Mixed Retailers - - - - - -
Non-Store Retailing 0.1 0.1 0.1 0.1 0.1 0.1
- Vending - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 0.1 0.1 0.1 0.1 0.1 0.1
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 Forecast Sales of Edible Oils by Category: Volume 2018-2023

'000 tonnes
2018 2019 2020 2021 2022 2023

Olive Oil 14.9 15.9 17.0 18.0 19.2 20.3

Corn Oil - - - - - -
Palm Oil 4,353.1 4,941.5 5,560.7 6,201.5 6,859.7 7,508.0
Rapeseed Oil 1,808.9 2,143.2 2,495.4 2,873.8 3,319.1 3,812.5
Soy Oil 1,911.9 2,153.2 2,418.8 2,730.4 3,065.9 3,452.8
Sunflower Oil 1,222.8 1,372.8 1,531.3 1,705.9 1,885.2 2,079.7
Other Edible Oil 1,758.6 2,030.7 2,393.4 2,873.6 3,495.9 4,269.8
Edible Oils 11,070.1 12,657.3 14,416.6 16,403.3 18,645.1 21,143.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 9 Forecast Sales of Edible Oils by Category: Value 2018-2023

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INR bn
2018 2019 2020 2021 2022 2023

Olive Oil 28.5 34.5 41.5 49.9 59.5 70.4

Corn Oil - - - - - -
Palm Oil 532.8 605.0 681.3 760.6 841.9 923.8
Rapeseed Oil 303.0 361.4 420.7 481.8 551.6 626.4
Soy Oil 257.9 295.3 336.7 383.9 434.8 492.5
Sunflower Oil 209.4 239.8 273.4 311.8 353.1 399.9
Other Edible Oil 304.8 349.0 401.3 463.4 539.4 630.5
Edible Oils 1,636.4 1,885.0 2,155.0 2,451.3 2,780.4 3,143.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Sales of Edible Oils by Category: % Volume Growth 2018-2023

% volume growth
2018/19 2018-23 CAGR 2018/23 Total

Olive Oil 7.0 6.4 36.4

Corn Oil - - -
Palm Oil 13.5 11.5 72.5
Rapeseed Oil 18.5 16.1 110.8
Soy Oil 12.6 12.5 80.6
Sunflower Oil 12.3 11.2 70.1
Other Edible Oil 15.5 19.4 142.8
Edible Oils 14.3 13.8 91.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Sales of Edible Oils by Category: % Value Growth 2018-2023

% constant value growth

2018/2019 2018-23 CAGR 2018/23 Total

Olive Oil 21.2 19.8 147.2

Corn Oil - - -
Palm Oil 13.6 11.6 73.4
Rapeseed Oil 19.3 15.6 106.7
Soy Oil 14.5 13.8 91.0
Sunflower Oil 14.5 13.8 91.0
Other Edible Oil 14.5 15.6 106.9
Edible Oils 15.2 13.9 92.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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