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MAHESH EDIBLE OIL INDUSTRIES LIMITED

By MRV Rakesh Pratheek Reddy Rishika Singh Divya UKR Prasanth

Set up by Ram Babu Rathour in the early 1960s Door-to-door selling of loose mustard oil. Diversified into mustard seeds, pulses, wheat and cereals Purchased mustard seeds from farmers in Shamsabad and sold to mills in Delhi, Kanpur, Haryana and West Bengal

Ram Babu accompanied the truck for delivery to eliminate transit costs and collect payments

SHIV KUMAR : Was a visionary, optimistic, extrovert and a driving force Joined Business in 1977. First hand experience in procurement , warehouse and value addition

Brij Mohan: Introvert, Pessimist and highly analytical

Dinesh: Reserved, very ambitious, confused, dominating

Mahesh: Reserved, calculative and a motivator

Eliminating Middlemen : Higher profits Setting up of own plant : Procuring RM, Converting and Selling Company bought 40,000 sq. m. land outside Shamsabad A great achievement: The four brothers together constructed the approach road to their newly bought land

Deliver the expected value to the customers and in turn deliver value to the organization Develop a community of customers as well as employees

Be totally fair to the stakeholders


Build an organization that enjoys freedom on all parameters

Procurement
Supply of mustard seed to plant Lowest procurement price Add value 100% quality check.

Marketing Startegy
Brand name - Saloni Initially in 15 lts tins Penetration in kolkata

Finance
Cleared UPFC loan by 1993. Reinvestment of profit into the business Sales
Marketing unbranded loose oil Rotate capital very fast Oil was sold through a broker. Turnover of Rs 2.90 lakh by 1991.

Truck laden with oil had meet with an accident Sold consignment in Kolkata Establishing its own channel Sales in kolkata immediately witnessed a 100% growth

Took loan of Rs 16 Lakh at interest of 19% for setting new company Ingenious Plan for efficiency No boundaries were constructed to the plot to avoid dead investment The plan had brick floor to lower the cost Shiva himself being a mobile office Family involvement in business With a installed capacity of 1,25,000 liters per day.

Market segmentation 1 ltr consumer pack( buying needs) Targeted to lower segment and positioned as premium quality oil Govt. ban on sales of mustard and unpacked oil due to outbreak of epidemic Dropsy MEOIL Tapped the vacuum created by passing quality test. MEOIL sold directly to retailers through its van salesman. Two major area of concern Production and Packaging Production oriented scheme and streamline the production process Ban on entry of suppliers to the factory

ERP and V SAT to facilitate trade Focus on SWOT analysis Use of e purchase to get raw material Open competition New market for Saloni were created (UP, Orissa, Bihar etc.) Incentive scheme for Production team and maintenance personnel Priority on payment realization Market expansion and market penetration MEOIL invested on packing material to minimize the cost of raw material procurement

Mile stone Rs 100 Crores turnover Vision Rs 1000 Crores by 2010 Deep thought & next course of action in order to achieve the dream Achievable or not? SHIV Back bidding, Total backward integration, Contract farming Procurement of 10 times more raw material timely delivery & least cost BRIJ Possible processes complete financial discipline, without effecting sales Money was not misappropriated DINESH Increase market share / man power, company owned oil vending outlets Central sales depot & exports, Organization to handle Rs 1000 crores sales Achieve in existing territory / go national

MNCs approach 2005 Jan 1st week

MAHESH Innovations at the plant Expansion at same site / another plant at mustard growing area / high consumption market

All the four brothers were distinct yet were able to carry forward their own family business. Ability to compare and analyze all the possibilities Political rapport

TRAITS
Risk Taking Opportunity finding Visionary Performance Oriented