Market Analysis of Edible Oils Industry with Special Emphasis on Adani Wilmar Ltd.’S “Fortune” Brand

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  • Topic: Cooking oil, Forecasting, Cooking oils
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MANAGERIAL ECONOMICS
MARKET ANALYSIS OF EDIBLE OILS INDUSTRY WITH SPECIAL EMPHASIS ON ADANI WILMAR LTD.’S “FORTUNE” BRAND SUBMITTED BY: Group 10, Section A
APEKSHA JAIN
ESHANI NANDA
KRANTI P. SINGH
MONIKA SOMANI
PRADIP RANGHOLIYA
VAIBHAV SAHU
FLOW OF THE REPORT
ACKNOWLEDGEMENT
Ms Simran Sethi, our Economics professor for mentoring and guiding this project till its completion.
Mr Vipul Rajyaguru, Senior Manager, Adani Wilmar Ltd, for providing us with useful insights of the industry and the Company including the sales and growth figures. Members of our group for contributing their hardwork and dedication to the project. And most importantly, all the consumers and retailers who took out some time to fill in our surveys. Introduction

Background and Size of the Indian Edible Oil Industry
Demand for edible oils
Vegetable oil consumption in the country is continuously rising and has sharply increased in the last couple of years to roughly 11.2 kg/head/year. This is still lower than the world average consumption level of 17.8 kg and that in neighbouring countries like Pakistan (16.1 kg). The developed western world has a per capita consumption of 44 to 48 kg/year. According to projections from the National Council of Applied Economic Research (NCAER), per capita consumption of edible oils is likely to reach 13.95, 14.83 and 16.17 kg by 2009-2010 if the per capita income grows by 4%, 5% and 6% respectively. Major players in the edible oil industry:

Marico
Agrotech
ITC
Adani Wilmar
Parakh Foods (Gemini brand)
Gold Winner and Cargill (Nature Fresh)
Ruchi Soya Inds
Structure of Adani Enterprises Ltd.
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Objective of Study
The objective of this research is to determine the customer as well as retailers preferences regarding different brands of edible oils which result in their market share. It involves the study of consumers’ buying behaviour and attitudes towards a variety of attributes and factors, which help them in decision-making. The brand we chose to focus on was Adani Wilmar Ltd.’s Fortune brand of oils. We studied the company profile, its market structure, the brand awareness, growth rates and popularity among consumers so as to forecast the future sales and understand the growth trends. We designed a questionnaire to survey various retailers and consumers to understand the demand and supply situation of the edible oil market. Secondary data from the internet has also been used for effective analysis. Importance of Study

The importance of this study is to practically understand the relevance of the concepts of managerial economics in the business organisations and here in the realm of the edible oil industry. The present market scenario was analyzed and future demands forecasted using the simple regression techniques. Also, a comprehensive study of the major factors involved in this market was conducted so as to see how different and similar a market structure is from the theories. Methodology

Primary data collection:
The sample size for the survey was around 40-50.
We are also grateful to Mr. Vipul Rajyaguru, Sr. Mgr – Adani Wilmar Ltd., for giving us a greater insight of the edible oil industry and the contribution of AWL to this industry. Secondary data collection:

Internet was the major source for secondary data.
Apart from understanding the edible oil industry in general and AWL in specific, our major task was to analyse the consumer demand for AWL’s edible oil brands and project the future sales for the company. We have used the trend projection and exponential forecasting technique to predict the sales. {draw:frame}

Company profile
Adani Wilmar Limited is a 50:50 joint venture between two recognized Multinational Corporations – the INR 275 Billion (US $5 Billion) Adani Group, the leader in International trading, Power Sector and Private infrastructure,...
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