rice bran oil project

INTRODUCTION 1.1 General Introduction Rice is one of the world's most important food crops and more than half of the people in the world eat rice as the main part of their diets. Young rice plants have a bright green color and as the grain ripens the plants turn golden yellow. A typical rice kernel is ¼ to 3/8 inches long. Rice bran is an incredible source of the vitamins, minerals, amino acids, essential fatty acids and antioxidant nutrients that help fight disease and promote good health. It's no wonder the healthy oil that comes from rice bran is becoming so successful at replacing hydrogenated oils containing tans fat. Research is ongoing with this invaluable food source and scientists have found components critical to human health. Rice bran oil is ideal oil for margarine and shortening. The flavor gives the good palatability and the desired prime form crystal provides smooth plasticity and spreading qualities. Since rice bran oil contains three different kinds of natural antioxidants -namely TOCOPHEROL, TOCOTRIENOL and ORYZANOL some of the major antioxidants companies have recently switched their basic oil to rice bran oil. Delicate yet flavorful, rice bran oil just may be the world's healthiest edible oil, containing vitamins, antioxidants and other nutrients - rice bran oil is rich in vitamin E complex, tocopherols and tocotrienols, a unique antioxidant known as gamma oryzanol, high quantities of phytosterols, polyphenols and squalence. Rice bran has a very good shelf life compared to other cooking oils because of these antioxidants. Rice bran oil is extremely light, versatile and delicious use it to fry, sauté, in sated dressings, baking, dipping oils and wherever you use cooking oil. Once you use it you will be amazed cooling light and healthy is also the best tasting. Rice bran oil is a source of vitamin E complex, antioxidants and other micronutrients to help fight free radicals. Rice bran oi! has the best balance of -saturated, monounsaturated and polyunsaturated fats and recommended by such

organs

as

the

American

Heart

A.R.G. College of Arts & Commerce

Association

and

the

world

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health organization. Foods cooked with California rice oil absorb upto 20% less oil! Less oil absorbed results in reduced calories, better, lighter tasting food and enhanced flavor and payability. Less oil absorbed also makes it more economical. Rice bran oil has been a popular cooking oil in Asian Countries for decades, where there is measurably lower level of cancer, diabetes, obesity and heart disease than in the United States. Studies show all of these conditions are promoted from the use of hydrogenated oils containing trans fatty acids that are so predominantly used in the USA. Many studies have also shown the unique cholesterol lowering ability as well as many other health benefits from the use of rice bran oil. 1.2 Statement of the problems By seeing the rich growth in edible oil industry. The major competitors in the current market in this segment are Saffola Gold, Ruchi Gold, Gold Winner, with so many brands in the segment the customer has a wide variety of choices. It is up to the customer to make a choice as per his requirement but his choice can be influenced in many ways. Before purchasing the oil, a customer look at various aspects like health, price, quality, quantity & brand. 1.3 Objectives of the study 1) To know the factors that influence consumer to purchase Akshath

products. 2) To study the purchase views of Akshath products consumers. 3) To know the existing problems with the products. 4) To know the popularity of brand. 5) To know the health awareness about our products. 6) To know the consumer satisfaction 7) To know the competitors in the market. 8) To know the quality. 9) To know the advertisement effects. 10)To know the marketing strategy adopted by company. A.R.G. College of Arts & Commerce

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11)To give suggestions for improvement of marketing strategy of Akshath Rice Bran oil. 12)To know the promotion strategy of Sri Anjaneya Agro-Teen Pvt. Ltd. 13)To know performance of Sri Anjaneya Agro-Tech Pvt, Ltd. 14)To know the people's awareness towards Rice Bran oil and popular product among the consumer (survey). 1.4 Scope of the study : The scope of this study is limited to Davangere city and with reference to Sri Anjaneya Agro-Tech Pvt. Ltd., and the survey is limit - to consumers of Davangere City. The vastness of the industry and the wide consumer base is also one of the factors affecting my study. 1.5 Statistical tools employed a. Charts. b. Graphs. c) Tables d) Diagrams etc., 1.6 Methodology Primary and secondary data have been collected and used to bring out this project report : 1) Primary data have been collected through : By interviewing and close contact with Managing Director Sri R. Manjunath, Director Sri A.K. Prashanth, Sri Savan V, Ambarkar. The manager was personally met to get more information regarding the following aspects : a) History of the company. b) Methods adopted by the company in promoting the product in the market. c) Annual turnover and demand for the product. d) Administrations of sales.


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e) Marketing mix strategy f) And other information. a) Interview with the distributors of Akshath oil

This was conducted to get the suitable answers for the below questions : a) To know the distributors activities towards the company. b) To know the sales methods adopted by them. c) To get the advice about the better packing and advertisement policies, which the company should adopt. d) To get advice about the marketing strategy adopted.

a) Interview with the consumers : To know the consumers attitude towards the products, a questionnaire was prepared and administered to 50 users in person. They were selected at random. a) The facts affecting consumers to buy Akshath rice bran oil.

b) Opinion about the oil. c) Types of refined oil preferred by respondents. d) To know the purchase method of the consumer. e) To get opinion about the quality and other aspect of the oil. f) To get suggestion for the improvement of the oil. 1) Secondary data has been collected from: ➢ The website www.seaofindia.com and

➢ SEA handbook 2005 ➢ Google websites.

1.7 Limitations The limitations of the study are as follows : 1. The information provided by the company is assumed to be authentic. 2. The data and opinion collected are assumed to be objective. 3. This study was done. Mainly through the secondary data. 4. Also, time limitation of the study. A.R.G. College of Arts & Commerce

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5. The survey is conducted only on limited respondent.

1.8 Specific Introduction Solvent extraction industry is the process of extracting crude edible grade oil from materials such as rice bran, sunflower groundnut, soybean etc. Oil is selling at the price of ghee, they say this statement is not far from reality. Hence/ India being largest producer of rice bran oil is in a great position to capitalize on this position and reap huge benefits. India is the fifth largest oil seeds producer after United States, China, Brazil and Argentina harvesting 2022 million tones of various oil seeds against the world production of about 330 million tones. India still retains the largest producer of status of sesame seeds, linseeds, castor seeds and safflower and the second largest position for groundnut in the world. Innumerable varities of oil seeds cultivated along with extensive range of minor and free origin oil seeds generated in the country is another distinctive feature of the extensive range of minor and free origin oil seeds generated in the country is another distinctive feature of the Indian oil seeds economy. Indian vegetable oil industry is consisting of 50,000 oil mills, 600 solvent extraction units, 500 vegetable oil refining and 250 vanaspati units spread across the country, crushing oilseeds and processing vegetable oils. Domestic turnover of the vegetable oil industry is Rs. 70,000 crores (US $ 16 billion) and import-export of about Rs. 15,000 crores (US $ 3.5 billon) consisting of Rs. 10,000 crores for import of edible oils and Rs. 5,000 crores for export of oil meals, oil seeds castor oil, groundnut oil, and vegetable fats of tree brone oilseeds. Today, India is also the largest producer of rice bran oil and producing about 700,000 tones of rice bran oil and promoting it as 'Heart Friendly Health Oil' in the country. Location of solvent extraction industry: Various geographical and economic factors effect the location they are: 1) Climatic conditions 2) Market condition A.R.G. College of Arts & Commerce

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3) Labour position 4) Water supply 5) Transport 6) Power supply 7) Capital invest 8) Raw materials 1.9 Organization of the Project Report Chapter 1: Deals with technical aspects of present study such as introduction about the study, scope, objective of study, methodology, limitations of the study etc. Chapter 2: This chapter deals with the company profile of products Akshath Rice Bran oil. Chapter 3 : Information about rice brand and health benefits of Akshath Rice Bran oil. Chapter 4 : Gives us the detailed information about the world scenarios Chapter 5 : This chapter discusses the introduction of marketing strategies and marketing strategies adopted by the company and dealers. Chapter 6 : This chapter highlights analysis of survey data based on questionnaire. Chapter 7 : This chapter presents suggestions and conclusions.


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COMPANY PROFILE SREE ANJANEYA AGRO-TECH PVT.LTD DAVANGERE 2.1 Company at a Glance Serial

Company at a Glance

Name of the industrial concern

No 1

Name

of

the

Industrial M/S Sree Anjaneya Agro-Tech PVT Ltd.

2

Concern Address

“Jayalakshmi

a) Registered office

P.B. Road, Davangere -577002. Sy No. 80/81, Mahajenahally (NH4) Harihar Taluk Davangere Dist. Karnataka

3.

4 5 6

Directors a) Sri A.S. Veeranna

Chairman

b) Sri. R. Manjunath

Managing Director

c) Sri. A.K. Prasanth

Executive Director

d) Sri. G.V. Vikas

Director

e) Sri Savan Y. Ambarkar

Executive Director

f) A.C. Chetak

Director

g) Sri. A.S. Kotrappa

Director

h) Sri. A. Channabassapppa

Director

i) Sri.B.K. Rajashekarappa

Director

j) Sri. K.K. Mahesh Line of activity Size of the industry Capacity

Director Edible oil extraction Medium Scale Industry SEPI –Rice bran/cake

a) Installed-existing capacity 150/200MTS/day SEPII – Soya bean, rice bran/oil lake 150/200 TS/day Edible oil refinery TS b)Maximum Operating

MTS per day capacity

Capacity

90%


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7 8

c) Main raw materials End use of finished products

Rice bran, oil cakes & Soya bean seeds Refined edible oils wholesale and retails

Turn over in normal Year

Consumers Rs. 13,118.53 lakhs

Project Cost & Finance: Cost of the Project a) Land b) Building c) Plant & Machinery d) Miscellaneous fixed Assets e) Preliminary and Pre-Operative expenses f) Contingencies & deposits g) Working Capital Margin Total


Rs. In lacks 0.00 45.00 454.15 22.00 8.55 6.30 50.00 586.00

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Means of finance: a) Promoters Contribution b) Term loan c) Grand from Ministry of food Processing

120.00 391.00 75.00 586.00

Total 9

Financial & Profitability indicators a) Promoters Contribution

33.28

b) Debt equity ratio (1 year)

1.68

c) Debt Service Coverage ratio (overage)

2.12

d) Internal rate of return

20.5 Lakhs

e) Profit before tax @ Maximum Capacity Utilization

5105.64 lakhs

1

f) Break even Point in terms of Sales Employment potential

100 per Shares

0 1

Power requirement

500 Kva

1 2.2 Background or About the Company: Sri-Anjaneya AGRO-TECH PVT LTD, was incorporated in the year 2002 with the object of establish the solvent extraction plant & other related activities in field of edible oils. The Company has Successfully implemented its first unit of solvent Plant and achieved 95% of capacity utilization within 6 Months from the date of commercial production by achieving a turnover of Rs. 3, 024,04 lakhs of 6 Months period, with this achievement & considering the increasing demand for oil especially edible oils in India the company has already successfully expanded to another additional unit of a higher capacity, the refinery is already in the process of completion and within a period of 3-4 Months will Commence Commercial Production.


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Directors profile: The Company Management is headed by Sri. A.S. Veeranna & Sri. R. Manjunath. The Directors are Sri A.K. Prasanth & Sri.G.V. Vikas 1) SRI. A.S. VEERANNA Sri. A.S. Veeranna aged about 62 years.

A charted accountant by

Profession, he is actively involved in the Cotton Yarn Manufacturing activity, he is the chairman of M/S Sree Ganesar Textiles L.TD, and Director of M/S Sree Anjaneya Cotton Mills (P) Ltd, and having very good experience in the administration & other activities of the company an experienced person he is the guiding force & his experience & is an invaluable asset to the company. 2) R. Manjunath: R. Manjunath Aged about 47 years. He is the Managing Director of M/S Sree Anjenya Cotton Mills (P) Ltd. And M/S. Sree Ganesar Textiles Mills Ltd., looking after day today business of this unit. He was got very good experience in oil extraction and edible oil Refinery. He was looking after the affairs of m/s. Ravi Vegatable oil co., at Davangere, which had been taken an lease basis. The unit was having oil expellers, Solvent extraction division. He was also a director of M/S Sree. Murugarajendra oil industries (P) Ltd., Chitradurga, which is having a solvent extraction Plant & Edible oil refinery unit. A great visionary Mr. Manjunath is the brain behind the whole company his leadership and dynamic vision is an asset to the company. 3) Sri. A.K. Prashanth : Aged about 32 years and an engineer by Profession he is involved in the day today running of the company Mr. Prashanth Can be credited with bringing technology & innovation to the industry. A very dynamic personality, he is also in charge of the expansion Project being done by the Company.


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4) SRI.G.V.VIKAS: Aged about 27 years and an Computer engineer by Profession. He is in charge of the Purchase and the accounts department. His youthfulness energy is a Source of inspiration to all in the company. 2.3 Associated Concern: The directors are actively involved indifferent Capacity in their group companies. These are engaged in Cotton Spinning the brief of some of the associate concerns are as follows. a) Sree Anjaneya Cotton Mills P.V.T Ltd, Davangere is engaged in Cotton Spinning with 21,304 Spindles. This was a sick unit taken over by the Present directors. They have successfully turned around this sick unit into a profitable one. Mr. A.S. Veeranna is the Director and Mr. R. Manjunath, Director. 2.4 Project and Product: The directors, who have got experience in oil business also thought about the diversification and decide to put up their first unit of solvent extraction unit in the year 2003 and able to run it successfully with a 95% Capacity utilization within 6 Months with this achievement and due to demand for oil have already set up another solvent Plants. The Second unit of Solvent Plant is also having a Capacity of 150/200 Metric tons per day of soya beans Seeds and rice bran/oil cakes processing. The finished Products are edible grade solvent oils and oil extractions. With the successful running of SEP unit 1 with 95% capacity utilization and the completion and installation of SEP unit 11 with in the targeted time, the overall Production of Solvent extracted oils will be around 60 to 75 Metric Tons per day. This oil we may have to sell to refineries for further processing to fit to become human consumption.


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The directors thought that with the setting up of refinery they could directly enter into an ever expanding consumers market to sell their refined edible oils. With this intention they have decided to set up new edible refinery unit. With the capacity 75 metric tones/ day to process refined oils so that the new refinery unit will consumer the entire oil produced in both solvent Plants. By setting up new refinery, raw material for refinery will be readily available. The proposed Project has been already approved form single window agency of Karnataka. 2.5 Technical & Marketing Process: The new technology enzymatic de-gumming technology which is tested & developed by Indian Institute of Chemical Technology, Hyderabad, and a Government of India organization under enzymatic de-gumming process is proposed to be adopted in our new refinery. We are installing the continuous physical refining technique, against the conventional chemical refining, which is batch process this will help us in processing high FFA rice bran oil physical referring of rice bran oil which is having high (Free tatty Acid 9FFA) percentage means 8-12% as against normal range of 3-5%. The plant will be designed to process all kind of vegetable oils; however we are concentrating mainly on RICE BRAN OIL. This is due to the fact that the rice bran oil will play significant role in augmenting edible vegetable oil supply in the country. Refined rice brain oil is taking over other refined edible oils etc. in Counties like Japan, Korea, China, Thailand & U.S.A Rice bran oil is known “HEART OIL” as the rice bran oil contains CHOLESTROL LOVERING EFFECT due to ORYZANOL & COTRIENOLS in the oil. Also the “SCALENE” Content in the rice bran oil is good for skin’s nutrition & maintaining integration of skin. 2.6. Location & Site details: The propose plant will be located at Sy. No.80 Mahajenahally, Davangere District, Karnataka State. The present Solvent extraction unit is working in the same premises.

The place is ideally situated on National

highway. A.R.G. College of Arts & Commerce

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Land measuring 18-38 acres allotted by KIADB. The company is having necessary infrastructures like roads, compound, Security etc., Land development work comprising leveling undulation, formation of internal road, and etc has already been taken up. The location is suitable for the proposed activity considering the proximity to raw material Source, availability of labour, transport, communication & other infrastructure. The above said land is sufficient for the following:a) Factory building b) Godown c) Pollution control & other utilities d) For future expansion The company main plant i.e. REFINERY PLANT & enzymatic degumming equipments with M/S GLAMPTECH agro Process Pvt. Ltd. Mumbai, one of the leading manufactures of continuous physical refinery, with proven track record. The promoters have finalized for supply of thermic fluid heating system & chilling. Plant with M/s THERMAX Ltd. These are Major production Machinery & the suppliers are highly reputed. The detailed list of plant & machinery is enclosed herewith the major machineries are expected to be delivered from November 2004 onwards. 2.7 Raw materials & consumables: The main raw materials are rice bran/oil Cakes. The unit requires 45000 mts / 60000 mts of rice bran/oil cakes at installed capacity per annum. The proposed location is having a major paddy growing area. There are about 200 rice Mills & oil Mills in & around Harihar Further we can procure rice bran/oil Cakes from surrounding district of shimoga, Haveri & Bellary where number of oil Mills & Rice Mills are situated but do not have any solvent extractions plants which are running in these areas. 2.8 Essential services:


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Power: - The unit requires 500KVA Power. The Single window agency of Karnataka has cleared our application for 500 KVA Power. It also proposed to install 500 KVA D.G.Set to offset load shedding & power failure. The directors have are proposed to have STEAM TURIBINE for generation of power. The steam that is produced for the purpose of in house use will be passed through the turbine to generate power Around 400 KVA Power will be generated & the same will be used for our own power requirements. This will cut down the power cost. Water: - The requirement of water in the processes is for use in the boiler for system generation and also in cooling tower.

The set consumption after

accounting for re circulation and human consumption is estimated at 100000 liters of water per day. The single window agency has agreed to grant the permission to draw the water from “SULEKERE NALA” Passing near the Project location. The Company is also proposed to have its own bore well in the project. The single window agency of Karnataka has already permitted for drawing water from SULEKERE NALA. Steam:- The steam is Major Cost element in the production of Solvent oils. The company installed the boiler with a capacity to produce 14 ton per hour of steam. Boiler is a sophisticated which can run an agro waste like groundnut shells, Paddy help the company to reduce the cost of production and cost of transportation by using the locally available fuel which are emanating from rice mill and oil Mills situated in and around the area. The boiler proposed in the F.B.C boiler (fluidized bed) which will enhance the heat required for generation of steam & reduce the air pollution.


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Man Power: ADMINISTRATION 1) General Manager 2) Chief Accounts 3) Clerk 4) Typists 5) Sales-Clerks 6) Store- Keepers 7) Supervisors 8) Attainders 9) Security

TECHNICAL 1) Engineer 2) Plant Operators 3) Preparatory Operators 4) Boiler attainders 5) Electronics 6) Others 7) Unskilled labourers

The Man Power required is two categories Skilled and Unskilled. The Skilled workers like boiler operators, plants operator, electricians etc., and the company has already having the skilled workers who are working in the existing solvent extraction unit. The additional Manpower required will be recruited & Trained in the existing plant. Some of the above manpower which are already available in the existing setup, and additional people wherever necessary will be recruited & trained in the existing plant. Transport: As the plant will be located near the NH4 required transport would be available easily. Since from the inception of the company we have not faced any problem in getting the transportation. Quality Control: Company is already having full pledged laboratory for testing the raw materials and finished goods for the quality control purpose.

Additional

equipments are proposed to be purchased & a provision of Rs 9 lakhs has been made in this project. Effluents:


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1) Company has already taken the permission of pollution control board of Karnataka, as per their guidance required equipments are already in place to control water and air pollution. 2) For this unit 11 also the clearance from Single window agency of Karnataka has been obtained. 3) We propose to install effluent treatment plant to avoid water pollution. 4) Above measures along with any other guidelines/ Measures will be

undertaken as per the prescribed guidelines of pollution control board of Karnataka. 2.9 Working Capital: The detailed working capital estimates are to annexure-11.

The

Company is having a working capital facility from Canara Bank, Mandipet branch for the add requirement we are making application for the sanction of the same & hopeful of getting it. 2.10 Scope of Marketing and Selling Arrangements The finished products, which the company is proposed to produce, are solvent oil and de-oiled meal. The Solvent oils are edible grade and are mainly used in oil refinery units for further processing and selling as refined edible oil which is an essential & daily consumer able food item. The demand for edible oil exceeds.

The supply and the government of India is spending crores

together in terms of foreign exchange to import edible oil to bridge the gap b/w the demand & supply. A short fall of edible oil is very huge. The Government inspite of best efforts to increase the production is not in a position to increase the production of edible oil in the country; our production would be only a small portion, which helps substitute the imports to the extent to our production. Selling arrangement: The Sales are directly handled by the directors itself with the help of qualified Staff of the company through commission agents & brokers.


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2.11 Economic Consideration: Oil is selling at a price of ghee. One says commonly today. The statement is not for reality in this country the prices of oil and fats are always on the ascent. The reasons are a) Over increasing population b) Rise in the standard of living of bulk of the lower sections of the population. c) Demand for the industrial use, soaps, vanaspathy etc. These factors are increased & continue to increase the demand for the oil & fats for edible & non-edible purpose.

But also the increase in the

production of oil seed crop is not keeping with the increasing demand. So India has exporter of oils Twenty years ago is forced today, to import oil for domestic. Consumption by spending invaluable foreign exchanges. Since there is an sample demand in export market for de-oiled meal, which brings in valuable foreign exchange to the country.

Therefore any propositions to

recover oil from any possible source should not only prove profitable but also will help in cutting down imports of oils thus saving foreign exchange. Hence pitting up a new Solvent extraction plant is encouraged by the Government & attractive for investor also.

Further this will contribute it share to solve

unemployment problem by creating an employment to 100 people directly & indirectly.


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2.12 Financial Results of the company


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SRI ANJANEYA AGRO-TECH PRIVATE LIMITED Regd. Office: RMC Link Road, Bamboo Bazaar, Davangere - 577001

SCHEDULE 'R' SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE ACCOUNTS:

I. Significant accounting policies: 1. Basis of Accounting & Revenue Recognition: I. The financial statements have been prepared under historical cost convention on accrual basis and in accordance with the applicable accounting standards and provisions of the Companies Act, 1956. II. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. III. Sales: a) Revenue from sale of goods is recognized upon passage of

title to the customers net off duties and taxes, cess and insurance. b) Consignment Sales: Revenue has been accounted for net off expenses, duties and taxes. IV. Interest: Revenue is on time proportion basis taking into account

the amount outstanding and the rate applicable.


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2. Fixed Assets: Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation. All costs including financing cost, till the commencement of production or put to use are capitalised. 3. Depreciation: (a) Depreciation on fixed assets has been provided on SLM method in accordance with provisions of Schedule XIV to the companies Act, 1956: (b) Depreciation has been provided on pro-rata basis on the additions/deductions, if any. 4. Investments: Investments are carried at cost of acquisition. There is no diminution in the value of investment. 5. Inventories: Inventories are carried at lower of cost or net realisable value as certified by the management, i) Raw materials, stores and work in progress - at cost or net realizable value whichever is tower. ii) Finished goods - at cost or net realisable value whichever is lower.

6. Retirement Benefit: a) Gratuity: The provisions of Payment of Gratuity Act, 1972 does not apply since, the commercial operation has been commenced from June 2003. As such no liability has been determined.


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b) Provident Fund: The employees and employer's contributions have been regularly remitted in accordance with the Provident Fund and Miscellaneous Provisions Act, 1952. 7. Bonus: Bonus has been provided on ad-hoc basis at the minimum rate as per the Provisions of Payment of Bonus Act, 1956. 8. Taxation: Provision for Income Tax comprises current tax and deferred tax charge/release. Deferred tax is recognized subject to consideration of prudence on timing difference, being difference between taxable and accounting income and expenditure that originate in one period and are capable of reversing in one or more subsequent period(s). Deferred tax assets are not recognised unless there is virtual certainty that sufficient taxable income will be available against which such deferred tax assets will be realised. 9. Borrowing Cost: Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are considered as a part of those assets, while other borrowing costs are recognized as expense in the year in which they are incurred.


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10. Related party disclosure -Accounting standard 18: I) Related Party Disclosures as required by the Accounting Standard 18 issued by the Institute of Chartered Accountants of India are given below; Sl.

Name

Relationship

No.

1 2 3

Amount

Outstanding

Transaction

(Rs. In

as on 31-03-

Lakhs)

2007 (Rs. In

A.K. Prashanth

Managing

Remuneration

3.60

lakhs) Nil

Savan Y Ambertcer

Director Executive

Remuneration

2.40

Nil

Director Director is the

Purchase of

64.07

2.26

Partner

Soya Bean

Director is the

Seeds Rice Bran

741.27

Nil

Sree Mallikarjuna Enterprises, Davangere

4

Nature of

Sree Mallikarjuna Agencies, Davangere

Partner


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Organisation chart Assistant Store Accountant Delivery Salesman Quality Computer Auto Production Mechanical Manager Director keeper Driver Control Manager Boys Operator Manager Manager


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Swot Analysis : Strengths : 1. Consistency in Earning profit. 2. Akshath oil is the only Rice Bran Edible oil in the market of Davangere city. Weakness : There are no weaknesses. Opportunities : Growing demand for the health caring oil products.

Threatening : As this is the only Rice Bran oil in Davangere City, there is no Competitor for same products. But there is a competition from other oil company products.


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PRODUCT PROFILE 3.1 Details about Rice Bran Write details Paddy Lusk, Rice bran, Rice proper out put per quintal Rice Bran: It is the outer brown layer of rice grain. Rice bran forms 8% of grass Milled rice contains 15-20% oil. 0.4-1.5%wax, 5-8% Proteins, 40-50% Carbohydrates, and 5-8% Fiber. Rice bran processing & production of oil is increasing year to year. Post-Milling Precautions: To avoid the lipase action rice bran has to be stabilized immediately on Production. Common Name: Rice Paddy (English), Chawal (Hindi), Dhan (Punjabi) Bhatta (Kannada) Bran is a layer b/w husk & endosperm of the paddy grain. There are 18,000 varietes of rice in the world. Name for bran: Rice bran, Bhatta (Kannada) The Major Rice producing contents are Asia (Roof mills of the long Himalaya range & its radiating arms in South East Asia). Africa & America. 3.2. Cultivation condition: Short day plant Rain fed/ irrigated Crop= 39oS lalitufe (Australia) to 45o N latitude Growing = (Japan) 50o N latitude (china) below sea level to 1978 meters high above sea land. Temperature = 16-20o C at flowering time & 18-30oC Condition = during ripening Duration= 85-90 days to 240 days in different varieties


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Soil = Reverine, aluminum, red yellow, red loamy hill & Sub – Montane, terrain, laterite, coastal aluminum red sandy, Mixed red & black & Medium and black. Seasons= Kharif & Rabi Harvest = Harvested when Moisture content of the grain is 20-25% Paddy is dried under shade to 13-14% Moisture before milling. Grain colour = white & Red Yields of Rice = All India average 1.67 tones hectare. 3.3 Rice Bran Oil: India is the second largest producer of rice in the world next to china, having potential to produce about 10 lakh tones of Rice Bran Oil per annum form outer brown layer of rice called ‘brain. Currently the industry is processing about 40 lakh tones of Rice bran by solvent extraction process producing about 6.5 lakhs tones of Rice Bran Oil per annum, out of which 6.0 lakhs tones is of edible grade and the balance 0.5 lakh tones is none edible grade. The research Instates in India & aboard has found this oil to be“Heart friendly Health oil” with following unique properties beneficial for maintaining good health. a) It is good for heart, it contain oryzanol which increase HDL (good)

Cholesterol and lowers LDL (bad) Cholesterol & triglycerides. b) It has the ideal ratio of saturated Mono unsaturated & polyunsaturated

fatly

acids

&

is

the

closest

to

world

health

organization

recommendation. c) It is good for skin it contain squares, which improves skin, tone delays wrinkle formation. d) It has hydroxy 3 Methoxy Cinnamic acids which stimulates hormonal

secretion & rejuvenates health. e) It has tocotrienol which helps in maintaining balance of nervous system. f) It has tocotrienol which has anti-thrombotic & anti-cancer properties. g) Food tried in refined Rice Bran Oil absorbs 15%.


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3.4 Cooking advantages of rice brain oil: a) Nutritionally Superior b) Contains more Micronutrients c) More stable at higher temperature d) Longer shift life e) Oil is less sticky, saves Soaps

f) Economical 15% less absorption of oil during frying g) Gives better taste & flavor to food items. h) Frying takes less time, saves energy. 3.5 States of rice bran oil in other countries: a) Rice bran Oil is extensively used in Japan, Korea, China, Taiwan, and

Thailand as premium Edible oil. b) In Japan, Rice bran oil is more popularly known as“Heart oil”. c) In recent years, U.S. Scientists has also shown tremendous interest in the

cholesterol lowering properties of rice bran oil. d) In western countries rice bran oil has acquired the status of a ‘health food’. 3.6 Model Contract for Edible/Commercial Grade Raw Rice Bran (The term ‘content’ used herein shall refer to & mean the agreement of sale/ purchase between the seller & the buyer made on the terms mentioned below) Contact No

Date------------------Place------------------

1) I/M/S --------------------------------------- (herein after called Seller) The under mentioned goods, as per terms & conditions mentioned below. Through: Broker (if applicable) -----------------------------------------2) Goods: India Edible/Commercial grade raw rice bran fair average quality

free from lumps, weevils, not rancid & warranted to contain edible grade raw rice bran. A.R.G. College of Arts & Commerce

29

Oil: Min 17% Sand/Silica : Max 3% -Acceptable up to 8% FFA : Max 10% Acceptable up to 14% Fiber : Max 10% - Acceptable up to 14% Commercial grade raw rice bran Oil

:

Min 17%

Sand /Salsa : Max 3% Acceptable up to 8% FFA

: Max 10% - Acceptable up to 14%

3) Quantity -------------- Tones each of 1,000 Kilograms Gross/ net----------------4) Price: Rs.------------------------- (Rupees ---------) Per M/T on (including

Taxes levies and/ or duties) gross delivered weight, F.O.R buyer factor / godown including siding charges wherever applicable. 5) Delivery: R/R to be tendered/dispatched by the seller on or --------- The

good shall be consigned to ----------- Siding and the railway receipt of the good shall be tendered during the period /on or before ------- or goods shall be dispatched / delivered free during the period /on or before the period of delivery shall be deemed to be the essence of the contract. R/R shall be tendered before 20.30 P.M on working days & before 1.00 P.M on Saturday if working the responsibility for damage up to 1.00 PM of the Next working days of the railway following the date on which the R/R is tendered shell be on sellers account. If R/R’s are tendered or presented after the above timing, they shall be deemed to have been delivered on

the next working day of the railway . if the due date falls on a holiday, the procceding working day shell be considered as the due date. If the goods are not receieed with in one month from the date of the R/R buyer shall hae the right to return the R/R to the seller and

claim

back

the

payment

made

to

the

seller .however, the seller has a right to replace the


30

goods by physical delivery within 15 days after one month of the date of R/R.the default date in case where the goods are not replaced to be fixed by the buyer at his-option either the date of one month of of the date of R/R of minimum 100 bags shall be accepted shall be accepted. R/R in which wagon number is not mentioned or of uncovered wagons shall not be accepted. 6) Packing:- Uniform, in new gunny bags / sound second had gunny bags without patents to be supplied by the seller @ his cost. 7) Payment:- ------------% against clean Railway receipt or delivery of the goods & balance after finalzation of weight & analysis. 8) Quality Allowance:- Should whole or any portion not turn out equal to warranty as stated in clause 2 above, the goods must be accepted at an allowance to the buyer at the following rages: a) For any deficiency in percentage of oil below 17%. The seller will pay an allowance to the buyer on the basis of 1:1 upto 12% for each percent of deficit & proportionately for any fraction thereof. If the oil content is below 12% for each percent of deficik and proportionately for any fraction there of. If the oil content is below. b)For any excess of Sand and /or Silisa over 3% the seller will pay an allowance to the buyer on the basis of 1:1 upto 5% for each percent of excess & proportionately for any fraction there of. Above 5% the seller will pay an allowance to the buyer on the basis of 1:2 upto 8% for each percent of excess & proportionately for any traction there of & above 8% the buyer has option to accept / reject. c)For any excess of fiber above 10% the seller will pay an allowance to the buyer on the basis of 1:1 upto 12% for each percent of excess & proportionately for any fraction there of . above 14% buyer has option to accept/ reject. d)In case of edible grade Raw rice Bran for any excess of FFA above 10%. The seller will pay an allowance to the buyer as shown below. A.R.G. College of Arts & Commerce

31

e)10% to 12%

25%

f) 12% to 14%

50%

Of the price variation b/w commercial raw rice bran & edible raw bran. 9) Quality Premium:- For any excess of oil content over 17% the buyer will pay a premium to the seller on the basis of 1:1 for each percent of excess in oil and proportionately for any fraction thereof. b) Sampling & Analysis:- For the purpose of drawing samples. The seller within 48 hr of the receipt of the written on telephonic intimation of the buyer informing arrival of goods at the factory, depute his representative to the factory of the buyer, for samples will be drawn jointly at the buyer’s/ sellers factory of godown or at the place of delivery by the representatives of the buyer & the seller from each wagon load /lot lorry & sealed & each one of them shall be numbered. In cases the seller’s representative is not present as provided here in above the samples will be drawn by the buyer’s representative & sealed. The sealed samples will be binding on both parties for analysis reports as provided below one sealed samples will be retained by the buyer. The buyer will report to the seller in writing within 20 days after sealing of the samples, the result of the first analysis. In case the seller so desire, they may send the second sealed sample to any of the laboratories approved by the solvent extractors association of India under intimation of the buyer in writing within 5 days on receipt of buyer’s report. On receipt of 2nd analysis result, it should be communicated to the buyer. Within 5 days on receipt of the analysis report which shall not in any case be dated later than 15 days from receipt of the sample by the laboratory. The buyer may accept the same or forward the third sample to the solvent extractors association of India only if the difference of any item b/w the first & second analysis is more than 0.5% & in case of oil more than 0.25% unit Such third any will be called for only for that particular item of test which is in dispute in previous two analysis. Seller will also have similar right to act for third analysis with the solvent extractors association of India under intimation on the buyer. Within 7 days of the receipt of seller shall A.R.G. College of Arts & Commerce

32

inform the buyer of his desire to exercise such option at the time of sending analysis report of second sample to buyer. At the time of opting for the third test the seller or buyer will remit the normal analysis charges plus Rs. 10/- for the respective test & also name of the laboratory which has conducted the second analysis. The association then shall send under its own seal & code number the so received sample to any approved laboratory approved for N.T.S.D contract for G.N. Expeller cake in rotation from the panel but other than the laboratory which has conducted the second test for item’s of test which is indispute. The laboratory shall submit to the association the forward the copies of the analysis report to the buyers as well as to the sellers. In case third analysis is undertaken the mean of the nearest to analysis of the three shall be taken as final & binding on both parties. The cost of second analysis shall be borne by the buyer if the result of the second report exceeds by more than 1% of the first analysis report, taking first analysis result as basis & the cost of third analysis shall borne by the party against whom the third analysis is reported taking the mean of the first and second analysis as basis. Weighment:- For the purpose of weighment the seller shall within 48 hr of receipt of the written or telephonic intimation of the buyers informing arrival of goods at the factory, dispute his representative to the factory of the buyer. Weighment of goods will be made at buyers factory in presence of buyer’s sellers representative if present at time of weighment. Ten percent of the total number of bags selected at random from each lot shall be weighed and the weight of the whole lot determined on the basis of such ten percent weighment. If, however, the buyer finds that the weights of the difficult bags vary by more than two percent from the approximate uniform weight, full weighment may be made for which extra cost shall be borne by the seller in case seller desires to have full weighment made, it shall be made for which cost shall be an their account. If seller’s representative does not arrive at the buyer’s factory or godown within the stipulated time, the weight taken by the buyer’s representative will be final & binding on seller.


33

a) Rejection:- Should any lot or consignment of the goods received under

contract be rejected on A/c of deficiency viz., excess of sand or silica over 85 or excess of fiber over 14% as provided in class 8, the buyer shall have the right to ask seller to replace the goods under contract or tender R/R in replacement there of within 10 days of written intimation of rejection by buyer. The rejected goods shall be removed from the buyer’s factory within a period to be specified by the buyer, which shall not be less than 7 days from the date for rejection. Before value of the goods, freight, transport & other charges, if incurred. The buyer may charge reasonable in & godown charges for rejected goods until they are lifted by seller & payment reimbursed. b) Godown Rent: - If the goods delivered are rejected, godown rent shall

be charged from the 7th day after fresh rejection at the rate of 25p per M.T Per day for 7 days, after which period rent shall be charged at the rate of 50 P per M.T. Per day for a fortnight and at the end of that period the buyer’s will have right to dispose off the goods at Market rate and compensate the loss, if any, from the seller. After rejection the buyer shall give back the goods after weighment, & maximum shortage in weight to the extent of 1.5% will be permissible. If the shortage exceeds 1.5% the buyer shall compensate the seller to that extent at the contract rate. c) Default:- In the event of the seller failing to complete the delivery of the

entire quantity of goods or part there of within the time stipulated in clause 5, and/or failing to replace the rejected goods in terms of the contract within the period of ten days from the date of rejection, the seller shall be deemed to have committed a break of contract to the extent and in respect of the goods so remaining undelivered & the buyer’s shall be entitled to treat the contract as at an end to the said extent & also entitled either. a) To treat the contract as cancelled without requiring seller to pay compensation for breach of contract.


34

b) To grant to seller extension of period of delivery in case of rejected lots, such extension to be asked for by the seller and granted by the buyer latest upto the last date of contract or. c) To buy the undelivered quantity an seller’s account within 5 days of the expiry of the delivery period or the period allowed to seller for replacement of the goods at buyer’s option and recover from the seller the difference b/w contract price and purchase price. or d) Without actually buying the undelivered quantity in the Market, to recover from the seller the difficult b/w the contract price & price ruling on the last day, as registered by the solvent extractors Association of India of the original due date or any one of the extended due date buyer’s option or the replacement period of the extended date.


35

INDIAN SCENARIO 4.1 Indian oilseeds Area, Production and Yield

Oilseeds Groundnut

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

Area

7,600

7,090

7,570

6,870

6,560

6,240

5,950

Production

8,640

7,370

8,980

5,250

6,410

7,030

4,370

Yield sesamum

1,138

1,040

1,210 1,670

766 1,560

977

1,127

733

Area

1,990

1,660

580

480

1,720

1,670

1,380

Production

640

570

332

308

520

700

430

Yield Rapeseed

322

342

301

418

311

Area

6,540

7,040

6,600

6,030

4,480

5,070

4,480

Production

6,660

4,700

5,660

5,790

4,190

5,080

3,840

Yield Sunflower

1,017

668

875

960

935

1,002

857

Area

1,930

1,740

2,000

1,290

1,060

1,180

1,640

Production

1,250

890

950

690

650

680

900

646

508

584

538

602

577

550

Area

5,450

5,990

6,310

6,220

6,420

6,340

5,870

Production

5,380

6,460

7,140

7,080

5,280

5,960

4,560

987

1,079

1,100

1,138

822

940

777

Area

710

620

530

440

420

400

350

Production

450

120

240

260

200

210

160

Yield

639

199

614

594

476

546

450

seed

Yield Soybean

Yield Safflower seed


36

Linseseed Area

830

790

800

590

580

540

460

Production

310

240

260

240

200

220

170

Yield Castorseed

373

299

344

408

351

390

376

Area

740

640

690

780

1,080

720

590

Production

900

830

840

770

880

650

430

1,218

1,292

1,221

979

818

911

732

Area

550

550

540

500

440

480

430

Production

150

140

140

150

110

130

110

Yield Total Nine

278

263

304

293

257

272

250

Area

26,340

26,120

26,710

24,280

22,770

22,640

24,140

Production

24,380

21,320

24,740

20,110

18,440

20,660

14,990

926

816

944

853

810

913

708

Yield Nigerseed

Yield

Source : Directorate of economics and Statistics, Ministry of Agriculture.


37


38

4.2 World scenario Table 1 :World production, yield and harvested area of Major Oilseeds Oil seeds

Production (Mn.T)

Yield (MT/ha)

Area (Mn. Ha)

04-05 (F)

03-04 (P)

02/03

01/02

00/01

04-05 (F)

03-04 (P)

02/03

01/02

00/01

04-05 (F)

03-04 (P)

02/03

01/02

00/01

Groundnut

23.70

23.41

21.58

24.08

23.05

1.06

1.05

0.99

1.05

1.01

22.45

22.19

21.86

22.98

22.89

Castorseed

1.21

1.08

0.96

1.04

1.35

0.97

0.93

0.85

0.87

0.90

1.25

1.16

1.12

1.20

1.50

Sesamessed

3.20

3.12

3.01

3.24

2.87

0.44

0.42

0.42

0.43

0.40

7.36

7.38

7.11

7.60

7.16

Rapeseed

40.95

38.76

32.86

38.68

37.51

1.52

1.51

1.45

1.54

1.52

26.88

25.69

22.60

23.87

24.61

Linseed

2.36

2.22

2.09

2.16

2.36

0.77

0.74

0.71

0.79

0.77

3.06

2.99

2.93

2.91

3.05

Sunflower

25.36

26.32

23.76

21.59

23.21

1.20

1.17

1.19

1.18

1.20

21.19

22.50

20.03

18.35

19.36

Soybean

214.50

186.44

196.45

184.53

175.26

2.35

2.10

1.39

2.31

2.30

91.34

88.80

82.32

79.72

76.07

Cottonseed

38.21

35.51

33.47

37.33

33.94

1.12

1.10

1.09

1.10

1.06

34.09

32.24

30.63

33.92

32.03

Palm Kernel

8.15

7.73

7.47

6.86

6.64

0.92

0.92

0.94

0.91

0.93

8.89

8.39

7.95

7.56

7.16

Copra

5.14

5.03

5.28

5.04

5.66

0.55

0.53

0.56

0.53

0.60

9.44

9.42

9.41

9.47

9.46

362.78

329.62

326.94

322.52

311.86

1.61

1.49

1.59

1.55

1.53

225.94

220.77

205.96

207.58

203.29

Total

Source : Oil World, F- Forecast, P-Provisional


39

4.3. Table 1 :World production, yield and harvested area of Major Oilseeds Oil/ Fat

03/04 (F)

02/03 (P)

01/02

00/01

99/00

98/99

97/98

96/97

95/96

Soybean oil Cotton oil Groundnut Oil Sunflower Oil Rapeseed oil Sesame oil Corn Oil Palm Oil Palm Kernel oil Coconut Oil Butter as fat Lard Fish Oil Linseed oil Castor oil Tallow and grease Total

31.28 4.13 4.90 9.48 13.96 0.78 2.05 2.91 28.42 3.38 3.20 6.44 7.28 0.61 0.45 8.03 128.28

31.02 3.95 4.45 8.61 12.31 0.18 2.03 2.65 27.52 3.28 3.21 6.28 7.09 0.60 0.42 8.08 123.24

29.44 4.30 5.32 7.45 13.45 0.83 1.99 2.78 25.07 2.99 3.25 6.22 6.88 0.63 0.45 8.04 120.04

27.08 3.94 4.984 8.69 14.01 0.72 1.95 2.73 23.81 2.91 3.51 5.99 6.69 0.67 0.52 7.71 117.08

25.32 3.87 4.46 9.55 14.55 0.69 1.95 2.41 21.27 2.65 3.08 5.94 6.68 0.71 0.48 8.21 113.40

24.58 3.88 4.78 9.30 12.71 0.69 1.99 2.54 19.50 2.45 2.37 5.87 6.69 0.73 0.44 8.11 107.73

23.19 4.07 4.38 8.64 12.22 0.74 1.93 2.56 16.97 2.18 3.45 5.73 6.20 0.68 0.46 7.68 101.91

21.00 4.03 4.51 9.15 11.48 0.68 1.87 2.77 17.49 2.18 3.15 5.70 5.97 0.66 0.46 7.41 99.83

20.37 4.13 4.43 8.95 11.67 0.63 1.81 1.60 16.15 2.06 2.91 5.67 5.85 0.66 0.48 7.45 96.18

Source : Oil World, F- Forecast, P-Provisional


40

4.4. India Feed Update (Qty. ‘000 tons) Oil seed

Production : Soybeans Cotton seed Ground nuts Sunflower See Rapeseed Sesame seed Palmkernels Copra Linseed Castor seed Total Net import : Soybeans Rapeseed Copra Linseed Total Crushings : Soybeans Cotton seed Ground nuts Sunflower See Rapeseed Sesame seed Palmkernels Copra Linseed Castor seed Total Supply (Consumption) Soybeans meal Cotton meal Groundnut meal Sunflower meal Rapeseed meal Sesame meal Corngl. Feed

2003-04 (Oct – Sept)

2002-03 (Oct –Sept).

2001-02 (Oct-Sept)

7100.00 5660.00 4950.00 1160.00 6500.00 800.00 11.00 700.00 230.00 670.00 27781.00

4300.00 4650.00 3300.00 1060.00 3700.00 620.00 10.00 690.00 200.00 550.00 19080.00

5350.00 5370.00 4900.00 726.00 4850.00 730.00 8.00 713.00 240.00 610.00 23497.00

0.20 10.00 1.80 4.50 16.50

0.20 14.3 1.7 4.70 20.80

0.10 11.50 1.90 4.30 17.90

6310.00 4120.00 3400.00 1070.00 5010.00 390.00 9.80 697.50 205.10 637.50 21849.90

3700.00 3360.00 2000.00 970.00 3555.00 380.00 8.70 702.70 191.90 601.80 15470.20

4620.00 3880.00 3420.00 675.00 4465.00 382.00 7.20 702.30 219.40 658.00 19028.90

1715.50 3295.00 1739.40 505.00 2344.50 225.60 -

1668.70 2685.90 1137.50 470.50 1648.30 219.80 5.80

1344.00 3101.60 1828.80 318.40 2278.90 221.00 0.20


41

Palmkern Meal Copra Meal Linseed meal Fish meal Total Imports : Soybean meal Cotton meal Corngl. Meal Palmkern. Meal Copra Meal Fish Meal Total Production : Beef & Veal Pork Mutton/Lamb Poultry Meat Other meal Total Population: (‘000)

9.40 284.10 131.20 50.20 10300.00

17.10 268.00 122.80 49.20 8278.60

11.90 257.90 140.40 38.00 9528.90

0.20 5.00 39.00 41.00 85.20

0.40 0.10 5.80 13.10 18.30 38.60 76.20

0.30 0.20 1.30 7.90 32.90 42.60

3000.00 638.00 714.00 700.00 108.00 5200.00 1082300.00

2965.00 625.00 710.00 670.00 146.00 5116.00 1065460.00

2925.00 613.00 705.00 630.00 146.00 5019.00 1049580.00


42

4.5 China feed update (Qty. ‘000 tons) Oil seed

Production : Soybeans Cotton seed Ground nuts Sunflower Seed Rapeseed Sesame seed Linseed Castor seed Total Net import : Soybeans Groundnuts Rapeseed Sesameseed Copra Linseed Castorseed Sunflower seed Total Crushings : Soybeans Cottonseed Groundnuts Sunflower seed Rapeseed Sesameseed Linseed Castorseed Supply (consumption) Soybeans meal Cotton meal Groundnut meal Sunflower meal Rapeseed meal Sesame meal

2003-04 (Oct – Sept)

2002-03 (Oct –Sept).

2001-02 (Oct-Sept)

162000.00 8669.00 9900.00 1800.00 11000.00 650.00 460.00 258.00 48937.00

16300.00 8758.00 10100.00 1900.00 10300.00 800.00 463.00 265.00 48886.00

15450.00 9470.00 10150.00 1750.00 11320.00 805.00 420.00 260.00 49625.00

18800.00 2.00 675.20 155.00 0.10 5.50 3.00 3.30 19644.10

20417.40 0.60 51.30 3.90 0.10 8.50 3.10 1.70 20486.70

10385.90 2.00 774.80 4.30 0.10 0.10 3.90 11171.00

277100.00 7890.00 5600.00 815.00 10670.00 460.00 415.00 250.00

25820.00 8020.00 5745.00 885.00 9640.00 470.00 415.00 260.00

20670.00 8590.00 6225.00 873.00 11360.00 533.00 418.00 264.00

21350.00 4985.00 3345.00 475.00 6412.70 240.00

20106.30 5031.20 3354.60 515.60 5736.30 243.20

16224.70 5331.60 3620.9 496.40 6793.80 277.30


43

Corngerm meal Corngl. Feed Palmkern Meal Copra Meal Linseed meal Fish meal Total Imports: Soybean Meal Groundnut Meal Sunflower Meal Rapeseed meal Corngl. Feed Palmkern. Meal Copra Meal Fish Meal Cotton Meal Total Production : Beef & veal Pork Mutton / Lamb Poultry Meat Other meals Total Population : (‘000)

150.00 141.00 8.00 16.20 277.00 1660.00 39060.00

145.00 121.20 0.50 0.10 278.00 1717.90 37250.10

141.30 128.70 21.40 0.50 280.10 1814.70 35131.40

32.70 72.00 12.10 40.00 20.00 8.00 16.20 856.00 10.40 1067.40

0.40 13.40 14.30 12.30 0.50 0.10 818.90 8.00 867.90

20.80 17.00 21.40 3.00 1122.50 1.60 1186.30

6040.00 44800.00 3270.00 14300.00 460.00 68870.00 12815.20

5830.00 43350.00 3120.00 13770.00 440.00 66510.00 12723.60

5600.00 41845.00 2950.00 13287.00 425.00 64107.00 12628.90

Source: Oil world 2004


44

4.6 State wise solvent extraction units and processing capacity (SEA Members) State

No. of

Processing capacity

Solvent

Over all oilseeds / Oil

Rice Bran processing

Extraction

cake processing

capacity with overall

units

capacity

oilseeds / oil cake processing capacity

Andhra Pradesh Assam Gujrat Haryana Karnataka Kerala Chattisgarh Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Uttaranchal Uttar Pradesh West Bengal Pondicherry Total in India Nepal Grand Total Source : SEA book 2005

44 1 42 11 31 7 13 31 41 4 18 15 16 7 21 13 1 316 1 317

8850 150 10235 1175 4385 855 1955 16325 9100 280 2490 3910 2585 975 3905 1570 400 68995 80 69075

2655000 45000 3070500 352500 1300500 256500 586500 4897500 2730000 84000 747000 1143000 775500 292500 1171500 471000 120000 20698500 24000 20722500

6935 110 1530 905 2110 570 1535 260 1350 300 2050 500 1805 700 3147 1255 300 25362 60 25422

2080500 33000 459000 271500 535000 171000 460500 78000 405000 9000 615000 150000 541500 21000 944100 376500 9000 7608600 18000 7626600

Oil Seeds / Oil cake and rice bran processing capacity of solvent extraction units (SEA members) (1985 to 2004) Year

No. of Solvent Extraction units

Processing capacity Over all oilseeds / Oil cake Rice Bran processing capacity processing capacity Daily

Annual (300


with overall oilseeds / oil cake processing capacity Daily Annual (300 days)

45

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

303 314 305 322 358 395 396 494 516 550 553 510 471 468 421 371 349 321 307 316

M.T 32,250 35,245 35,395 39,025 44,205 51,852 54,878 71,808 81,807 89,632 99,328 101,225 96,955 96,085 88,700, 80,885 78,450 72,800 69,885 68,995

days) M.T 96,75,000 105,73,500 106,18,500 117,07,500 132,61,500 155,55,600 164,63,400 215,42,400 245,42,100 268,89,600 297,98,400 303,67,500 290,86,500 288,25,550 266,64,000 242,65,500 235,35,000 218,40,000 209,65,500 206,98,500

M.T 14,057 15,979 16,199 17,015 20,259 24,630 25,100 31,325 32,858 35,145 34,078 34,287 31,027 26,487 26,447 26,077 25,322 23,237 23,592 25,362

M.T 42,17,100 47,93,700 48,59,700 51,04,500 60,77,700 73,89,000 75,30,000 93,97,500 98,57,400 105,43,500 102,23,400 93,08,100 85,40,100 79,34,100 78,23,100 75,96,600 69,71,100 70,77,600 76,08,600

Source: SEA book 2005


46

4.7 Supply locations and prices of food grade hexane (November 2004) M/s. Hindustan Petroleum Corporation Ltd., Location / Customer

Basic Price Rs. / KL

Mumbai Shakurbasti (Delhi) Manglia (Indore) Vijayawada Tondiarpeth (Depo) Madras Amousi (Lucknow) Jaipur Budge-Budge Ghatkesar (Hyderabad) Nandesari (Baroda) Ambala (Haryana) Irumpunam Source: SEA book 2005

Excise Duty 16% Education cess 2% on CE Rs. = -16.32%

Total Rs. /KL

22700 24400 23600 23300 23400

3704.64 3982.08 3851.52 3802.56 3818.88

26404.64 28382.08 27451.52 27102.56 27128.88

24800 23800 25100 22900

4047.46 3884.16 4096.32 3737.28

28847.36 27684.16 29196.32 26637.28

22800 24600 24000

3720.96 4014.72 3916.80

26520.96 28614.72 27916.80

M/s. Bharat Petroleum Corporation Ltd., Location / Customer

Basic Price Rs. / KL

Ex-Mumbai Ex-Calcutta Ex-Brijwasan (Delhi) Ex-Manglia (Indore) Ex-Chelapally (AP) Ex-Tondiarpeth (Chennai) Source: SEA book 2005

Excise Duty 16% Education cess 2% on CE Rs. = -16.32%

Total Rs. /KL

22700 25100 24400

3704.64 4096.32 3982.08

26404.64 29196.32 28382.08

23600

3851.52

27451.52

23700

3867.84

27567.84

23400

3818.88

37218.88


47

M/s. Indian Oil Corporation Ltd., Location /

Basic Price

Excise Duty 16%

Total

Customer

Rs. / KL

Education cess 2% on

Rs. /KL

CE Rs. = -16.32% Indore Guntkal Chennai Ex-Koyali for

23600 22760 23200 21450

3851.52 3714.43 3786.24 3500.64

27451.52 26474.43 26986.24 24950.64

Gujrat Market Ex-Koyali for

22380

3652.41

26032.41

Maharashtra Market Source: SEA book 2005


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MARKETING MIX STRATEGY Marketing mix refers to the amounts and kinds of marketing variable, the firm is using at a particular time under marketing mix we include product mix, distribution mix, communication mix and price mix. The credit of introducing this concept of Marketing mix goes to Professor N.H. Borden” of Harvard Business School of America. •

According to N.H. Borden:

“Marketing mix refers to two things {a} a list of important elements or ingredients that makeup the marketing programme, and {b} the list of forces having bearing on the marketing operations”. •

According to Prof. Philip Kotler:

“The firm’s task is to find the best solution for its marketing decision variable; the settings constitute its marketing mix”.

• According to Mr. Jerome Mc Cathy, an American Expert: “Marketing to the pack of four sets of variables namely, product variable, price variables, promotion variables and place variables”. In other words, Marketing mix is the blend or the compound of all the marketing efforts around the found ingredients namely product, price, promotion and place. These ingredients are interrelated and all revolve round potential consumer satisfaction as the local point. Nature of marketing Mix Strategy: Marketing mix is a dynamic process. If changes with chance in needs of consumer. Marketing mix is a difficult task as it involves the bleeding id decision in four different area of marketing i.e., the product, price, promotion and place. In fact, effectiveness of marketing efforts depends upon the decision made in cash of these found areas of their proper combinations. A.R.G. College of Arts & Commerce

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Objective of Marketing Mix Strategy: The basic objective of marketing mix is to satisfy the needs of the customer in the most economical manner. The emphasis of marketing mix is to satisfy the needs of the customer effectively. The elements of marketing mix strategy: Precisely, marketing mix is the master mix of sub-mixes namely, product mix, price mix, promotion mix and place mix as a set of good many variables. These elements of marketing decisions are over which the firm has content. Elements Of Marketing Mix Strategy:• Product Mix Strategy • Price Mix strategy • Promotion Mix Strategy • Physical distributed Meaning & Objectives of Marketing Mix Strategy 1) Product 2) Pricing 3) Promotion 4) Positioning 5.1. Product strategy: The product is the most tangible and important single component of marketing programme. The product policy and strategy is the corner stone of a marketing mix, without product, there is nothing to distribute, nothing to promote, nothing to price. If the product fails to satisfies consumer demand. No additional cost on any of the ingredients of the marketing mix will improve the product performance in the market place. A product strategy is a firm’s plan for marketing its products greater emphasis is laid on the product objectives for this reason, the firm develops a product design to achieve the ret objectives.


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The company is producing only a single type of edible oil that is Rice bran oil our oil is different from other regular edible oil, our oil is been called as HEAT oil in Japan as it contains original which increases HOL (good) cholesterol and lowers LDL (bad) cholesterol & triglycerides. Over oil contains sequence which improves skin tone, & delay wrinkle formation over oil contain vitamin E, which helps in maintaining balance of nervous system. Over oil observes 15% less oil which can be lower in calorie in take. Cooking advantages of Akshath oils: High nutritional content Longer Shift life Oil is less sticky, saves soap Gives better taste & flavor to food items. Akshath oil is in market low in 3 different type of packing & in different quality Packing: The oil come in 3 different type of packing that is in pouches and 2nd in the Tin and 3rd it comes in bad debts. Quantity: Our oil comes in 1 /2 liters, 1 liter 5 liters that is in pouch, and 15 kg Tin and 180 kgs in barrels. The pricing will be changing according to market demand and competition.

5.2 Pricing Strategy:


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Pricing is an art of translating into quantities terms (Rupees and paisa) the value of the product or a unit of service to customers at pain of time. Price is a major marketing tool and helps in directing the products to a specific consumer regent; price is a powerful instrument in which both the buyer and seller are keenly interested. It is the price of a product or a service that ensures a decent return of investment, guaranteed table, economic structure creator, maintains and extends market. Pricing task involve establishing pricing objectives. Identifying the factors governing the product value in monetary terms, formation of pricing policies and the strategies, implementing them and controlling them for the best result. Pricing plays a very vital role during sales of a product. As we can find a large number of products in the market with the some contents, so by this consumer’s will be having choice to buy, so while fixing the price the company will look at the prices of the other competators in the market & we will fix the price by keeping the Low class consumer’s also. As Rice bran oil is now started growing in the market, the company had decided to offer the product is reasonable price, which would help the company product to reach more people, by the price that the product will be kept. So now we are offering 1 liters /kg packet in the rate of 62 as the introducing price. 5.3 Promotion Strategy: Promotion strategy deals with efforts undertaken to increase and improve demand and sales of the products of the firm. Promotion also plays a very vital role the success of a product. The way a product is promoted clearly has a major impact on the way it succeeds. Bad promotion can laid a good product to fail in the market. Hence the promotion strategy adopted by a company should be carefully planed & should be meticulous by nature. Today’s Markets, regardless of your product, are full of competitors, promoting a product into this A.R.G. College of Arts & Commerce

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environment requires more than just a fortastic Product, but specialized product launch knowledge & a Proper Process. The goal of a product is to establish a product as the leader in the field, the first in a class, a risk-free alternative. But to accomplish this goal two thing need to happen, first, an alternative. But to accomplish this goal two things need to happen; first an untarnished perception & image for the product & company must be created; & second, a comprehensive promotion plan, that ensures that every high leverage / cost –justiable action is planned for and professionally executed must be implemented “In the most successful ventures planning for the product promotion starts along with preliminary design & development,” Gooze says “ Positioning, Sales channels & distribution, adverting & public relations all need to be addressed & should be given as much time & energy as the development & design stage. Synchronizing marketing activities with product development is critical for success.” Among the key components included is a Strong Product promotion plan”. a) Clearly defined sales objectives b) Building a large consumer base c) Good packaging & branding d) Assured sales channel realness

e) Promotional functions in place f) Resources to track, Monitor & account for execution g) Good advertising & vast coverage h) Catchy Punch line i) Maintaining quality & proper quantity “Products often fail because companies don’t manufacture adequate quantities of the new product and make them available to prospective customers”. Webb Says, He suggest creating a management


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team with responsibility for, among other things, ensuring that all level of the company are prepared to handle demand for the product and to train staff in its use for customer support. Publicity is the most cost effective way to launch your company’s latest product regardless of whether you plan to Market your product on a local, national or international scale, with publicity, you can introduce a product to thousands, even millions of people literally overnight and gain valuable product marketing research in the process. IMA defines publicity as mass communication with potential customers through the media publicity is the process by which your company’s new product marketing “Sales Pitch” is transformed into a editorial format or news. Editorial Coverage of new product marketing launches can take many forms, but the most profitable type usually occurs in print media such as newspaper & magazines. Beat your competition to the market with a professionally launched product. a) Present your product & company with the very best image possible. b) Ensure the alignment of your marketing, sales customer service, & interest, marketing activities for maximum impact. c) Eliminate the perception of risk by the market or your potential customer base. d) Enhance your product knowledge base. e) Ensure that no delays occur that could adversely affect your

product in the market. f) Ensure that no critical action fall through the cracks & come back to haunt you late.


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g) Keep your product on track so you can beat the competition in the

market. h) Eliminate the risk & expense of a re-launch i) Structure a product launch that will achieve your market & early sales goals. For your initial product launch, your best reception will be found in the relationship buyers. These are business customers who like your products & services. They have built a relationship with your employers. They think of your company as their primary superior of your category. They do not want to be bothered to have to shop around every time they make a new purchase. They look for quality, good service, helpfulness. Friendship and information, if you can supply these things, they will stick with you when your competition is on sale. If you have a new product, they will be the first to want to hear about it. It is to these good people that we look for our product launch. What does a customer want? Sometimes companies mistakenly conduct interviews with intension of gathering new customers for existing products. “If the goal is product development, you shouldn’t be sending researches into the field to debit price or performance”. Gooze says “This should instead be a time for rigorous listening Ask open-ended questions that are designed to reveal genuine needs & feelings among your customers. And then listen to the answers”. Ideally, a cross junctional a product development team including representatives from manufacturing, engineering operations, marketing etc- should conduct these interviews this way, critical functional areas arrive at a keener understanding of what the end-user needs & the environment in which they would use the intended product.


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Of course, not all companies can afford to do this so whether you hire an outside marketing firm or use limited resources to conduct oneone customer interviews, these are the types of questions you need answered. a) Who are our customers?

b) What is their problem or seed? c) How will the proposed new product answer that need or solve that problem? d) Does the new product offer advantages over what the competition has? e) What factors will go into the customer’s decision to purchase the new product? Execution: How will the product reach customer? Are you established sales channels. Up to the new challenge? “ When promoting a product, you need to step back & assess its fit with existing channels” Gooze says, for example, if the product is a features reduced version of an existing product that is being targeted to a mass market, there are some questions you should ask. a) Do you existing distributors serve mass marketing retail outlest. b) Does our current pricing schedule take factors like mass market

competition into consideration? c) If we lower our price, how much can we offer to spend on the sale

of each unit at this lower price? d) Can we reach this market with our current sales force? “Determining your pricing strategy & reviewing your sales channels should be happening while the product is being positioned, as there factors will have a definite impact on the positioning message “Gooze Says.


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In situations where one company partners with another to introduce a new product, web advises strict due diligence before the execution phase- thus ensuring that each partner is fully committed to the process & has the necessary financial resources & familiarity with the market place. “Whatever the circumstances have clear cut performance objectives in place & be ready to measure than carefully” he add’s “Use launch team to track progress & make it responsible for communicating results to senior management.” 5.4 Positioning: “Positioning is not about features & specifications it is the care message that differentiates your product from everything else in the market place.

A unique product identifies strong tunes the market’s

perception of your product and in turn reinforces your company’s overall positioning”. To make sure everyone is working toward the same goal, certain milestones should be established. a) Have we identified all necessary launch channels?

b) What number of new product do we plan to sell by a specific date? c) When will the product be ready to launch at rational trade

convection? d) Are sufficient Stocking orders placed with key distributors? e) How can we grow the product into a 5-10 percent market

entrenchment by a specified date? “Break down every conceivable launch component “Identify customer data basis where appropriate send now product sample to industry & trade publication reviewers, do everything necessary to create a strong, functioning life support system for that product”. Planning for these activities should be as simple as possible, he adds “We not talking about writing a so page launch overview document.


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These tasks should facilitate the most favorable development of the new product- that’s all. Approaching the customer with the new product can be the most delicate situation of all, which is why “having your ducks in a row”, is so important.

If existing customers encounter design flaws in the new

product, they may forgive and forget, but its unlikely new customers will feel the same way. Also, the new product may not be the right “fit” with all of your current customers.

Prepared reduces the risk that the

company’s credibility may be managed by missteps at the launch time. “In order to establish the new product’s identity in the market place, the core message must be repeated over and over again” this requires consists positioning within all of the company’s marketing communications, including. a) New & Current product literature b) Press releases c) Product specifications d) Sales presentations Slogan or punch line is the one of the most important aspects of promotion. What is your slogan? Is the slogan consistent with your positioning strategy? This question needs to be asked by the management to see top it that their product is promoted properly. Did you provide any sketches of your creative ideas? Example: newspaper advertisement, T.V advertisement, coupon, radio script. To operate successfully in global economic scenario, along with steady it is very important that the company also develops a brand image for its product & positive corporate identify among its buyer & suppliers. Corporate brand & image building activities are one of the most important activities for the strategic business planning using of a company.


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ANALYSIS AND INTERPRETATION OF SURVEY DATA With the object of knowing consumer attitude towards refined rice bran oil and to know the market share of various brands and also about the Akshath Rice brand refined oil two types of filed survey was conducted on various aspects. 1) General Refined oil Survey 2) Akshath Rice bran oil.

1) General Refined oil Survey GENDER Table 1: The gender of the sample consumers is presented Gender Number Male 07 Female 18 Total 25 Source: Survey data

Percentage 28 72 100

Table: 1 Reveals that among the 25 respondents who are interviewed 07 (28%) are male and the reaming 18 (32%) are female. Source : Table 1


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AGE Table 2: The age groups of the consumers interviewed is presented Age group in years 20-30 30-40 40-50 50 & above Total Source: Survey data

Number 6 5 9 5 25

Percentage 24 20 36 20 100

About 24% of the respondents are in the age of 20-30, 20% in the age group of 30-40, 36% are in the age group of 40-50& 20% in the age group of 50 and above.

Source : Table 2


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MARITAL STATUS Table 3: The marital status of the consumers interviewed is presented Marital status Number Married 20 Unmarried 05 Total 25 Source: Survey data


The above Table 3, shows the No. of Married and unmarried consumers among the 25 interviewed 20 members are married (80%) & 05 members are unmarried (20%). By seeing the above 3 tables it can be interpreted that a large No. of respondents are of middle aged, married female members. As refined oil is a product involved in cooking. As cooking is more done by the females? This trend can be seen. Source : Table 3


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INCOME Table 4: Showing the incomes of respondents INCOME (in Rs.) 5000-10000 10000-20000 20000&above Total Source: Survey data

Number 10 09 06 25

Percentage 40 36 24 100

About 40% of the respondents are having the income around rs.500010000, 36% are having the income around the rs.10000-20000, and 24% are having the income around 20000 & above. TYPES OF REFINED OIL Table 5: Showing type of refined oil used Type of refined oil Sun flower oil Soybean oil Rice Bran oil Ground nut oil Total Source: Survey data

Number 12 3 8 2 25

Percentage 48 12 32 8 100

The above table reveals that the large No. of consumers use sun flower based refined oil. As lot of different types of oils are available in market. Rice bran is holding at the second place in the above table according to survey.


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BRANDS OF OIL Table 6: Showing brand preferred Brand Number Saffola gold 8 Nutrlite 1 Ruchi Gold 10 Akshath 4 Others 2 Total 25 Source: Survey data

Percentage 32 4 40 16 8 100

By there above table we can come to know that sunflower based refined oils are most commonly used type. And as a lots of brand products are available. Not one single brand has a significant market share. The Ruche Gold holds the 1st place in the table and the Sunflower holds to 2nd these two are sunflower based refined oil. Akshath holds to 3rd by the above table.

Source : Table 6

MOTIVATING FACTORS Table 7 : Showing factors motivating consumers Factors Number (25) Health 14 Price 13 Quality 05 Advertising 08 Dealers influence 07 Quantity 02 Brand 01 Source : Survey data

Percentage 56 52 20 32 28 8 4

The table no.6 shows us that the people first give preference to there and there family’s health & they look at price before purchasing & the


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advertisements & dealers influence also motivate the consumers to buy the product. About 56% of health factor motivated the consumers & about 52% of price factor motivated the consumers and advertising 32%, Dealers influence 28%, quality 20% motivated the consumers & about 12% factor covers quality and brand

Source : Table 7 QUANTITY Table 8 : Showing Quantity Needed by the consumers Liters Number Half Liters 14 One Liters 5 Five Liters 13 10 Liters 8 Total 25 Source : Survey data

Percentage 56 20 52 32 100

Most of the people during the survey about 56% of people prefer half liters, 20% people prefer 1 liters, 52% prefer 5 liters & 32% prefer 10 liters. OPINION Table 9 : Showing opinions of the consumers towards 5 point Likrd scale. Opinion Number Excellent 4 Good 11 Satisfied 9 Not Satisfied 1 Bad 0 Total 25 Source : Survey data

Percentage 16% 44% 36% 4% 0% 100

This 5 point Likrd scale table shows us the opinions of the customer and most of the consumers opinion about there refined oil is good 11(44%) and satisfactory 9(36%).


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2) Akshath Refined oil Survey GENDER Table 1: The gender of the sample consumers is presented Gender Number Male 07 Female 18 Total 25 Source: Survey data


Table: 1 Reveals that among the 25 respondents who are interviewed 07 (28%) are male, reaming 18 (32%) are female. Source : Table 1


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AGE Table 2: The age groups of the consumers interviewed is presented Age group in years Number 20-30 05 30-40 07 40-50 05 50 & above 08 Total 25 Source: Survey data

Percentage 20 28 20 32 100

About 20% of the respondents are in the age of 20-30, 28% in the age group of 30-40, 20% are in the age group of 40-50 & 32% in the age group of 50 and above.

Source : Table 2


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MARITAL STATUS Table 3: The marital status of the consumers interviewed is presented Marital status Number Married 17 Unmarried 08 Total 25 Source: Survey data


The above Table 3, shows the No. of Married and unmarried consumers among the 25 interviewed 20 members are married (80%) & 05 members are unmarried (20%). By seeing the above 3 tables it can be interpreted that a large No. of respondents are of middle aged, married female members. As refined oil is a product involved in cooking. As cooking is more done by the females? This trend can be seen. Source : Table 3


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INCOME Table 4: Showing the incomes of respondents INCOME (in Rs.) 5000-10000 10000-20000 20000&above Total Source: Survey data

Number 10 07 08 25

Percentage 40 28 32 100

About 40% of the respondents are having the income around rs.500010000, 28% are having the income around the rs.10000-20000, and 32% are having the income around 20000 & above. MOTIVATING FACTORS Table 5: Showing factors motivating consumers Factors Number (25) Health 13 Price 08 Quality 06 Advertising 18 Dealers influence 2 Quantity 3 Brand 0 Source: Survey data

Percentage 51 32 24 72 8 12 0

The table no.5 shows us that the people first give preference to there and there family’s health & they look at price before purchasing & the advertisements & dealers influence also motivate the consumers to buy the product. About 26% of health factor motivated the consumers & about 16% of price factor motivated the consumers and advertising 36%, Dealers influence 4%,quality 12% motivated the consumers & about 6% factor covers quality and brand 0%. Source : Table 5


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QUANTITY Table 6: Showing Quantity needed by the consumers Liters Number Half Liters 14 One Liters 5 Five Liters 13 10 Liters 8 Total 25 Source: Survey data

percentage 56 20 52 32 100

Most of the people during the survey about, 56% of people prefer half liters, 20% people prefer 1 liter, 52% prefer 5 liters & 32% prefer 10 liters.


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OPINION Table 7 : Showing opinions of the consumers towards 5 point Likerd scale. Opinion Number Excellent 1 Good 10 Satisfied 13 Not Satisfied 1 Bad 0 Total 25 Source: Survey data

Percentage 4% 40% 52% 4% 0% 100

This 5 point Likerd scale table shows us the opinions of the customer and most of the consumers opinion about there refined oil is good 10(40%) and satisfied 13(52%).

Source : Table 7


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SUGGESTIONS AND CONCLUSION On the basis of survey findings some suggestions provided to the company are: Advertising: In the present world of technology, advertising plays the major role in marketing of a product. Advertising is a social and business process responsible for the mass communication of the information. !f the product is the lack. Advertising is the key to open the product to the market. It is only one mediator between producer and ultimate consumer, which makes the consumer to see, to think and to feel about the product and it also, tempts the consumer to buy the product. Advertisement can popularize and establish an image on the product and build up reputation and good will for the producer. This show that in present world advertising can create wonders in the market advertising may be by means of television or by using board cast media or by using magazines as the media. By survey it has been seen that most of the consumers prefer television advertising as they spend most of their free times in watching television. So the company gives more advertisement in Television and also through magazines, newspapers, internet etc., to attract the new customers from the corner and corner of the country.


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Sales promotion: Sales promotion has been the fastest growing segment a promotion mix and has become a major factor in success of marketing in recent years, "sales-promotion are the achievements of short-terms marketing objectives by schematic means". Sales-promotion is a direct and immediate inducement that adds an extra value to the product. So it prompts the sale force, dealers and consumers to buy the product sales. Promotion carried along with advertising and publicity creates effectiveness in the selling activity the company has not undertaken the sales promotion at the expected level. The company should give importance to the following sales promotion. i. Free offers should be given such as if your buy one nail enamel you will get another free ii.By providing special discount during festival times iii.By providing special price off on buying multi packs iv.Providing special bonus offers, free gifts, free coupons to wholesale dealers and retailers because they are the people who actually sell the product and they must be mentioned to sell more specially. v.Sales contest to the sales force to double or multiples their selling interest and efforts. By this the hidden competitive spirit is boosted and the overall performance of the sales-force is improved. Attractive packing: Packing plays the most vital role in marketing the cosmetics successfully packaging is an activity which is concerned with the protection,

economy,

and

convenience

with

the

promotional

considerations. An attractive package maintains the brand image and creates an interest in minds of the customers and an impulse to by. So the


73

packaging should be done in such a way that the contents can be stored for long time and convenient for transportation. The company must also consider change of package to 1. Attract new customers and expand the market 2. Create stimuli for demand 3. Cope with new innovation in the field of packaging Innovation: Product innovations have become an important part of the companies marketing strategy today. Both establishing and established firms are inventing new products of brining about changes in their original products to increase and maintain the consumers. Now a day’s people expect something new. They purchase such products, which have something special in them. Therefore innovations are must. Distribution: vi.The distribution network of the company is good, but rather than this

the company should make quickly flew of products the distributors. If in case of delay in supply, people will start moving to next best alternative. vii.The company should take steps to supply its products to distributors with 3 to 4 days. viii.The company should appoint effective sales person in rural and district area to boost the sales. ix.Periodical survey of the market is necessary by the company to know

changing attitudes regarding to products.

Suggestions of the users: A.R.G. College of Arts & Commerce

74

1) They have to give lot of advertising in different kinds of media, sales promotion which is helpful in boosting the sales. 2) They must inform the customers and retailers about new product by visiting door to door & by distribution of free samples. 3) They must survey about there products to know other refined oil. 4) The colour should be changed in order to attract the consumers. 5) They must concentrate more on the packing of 5 & 10 liters can.

Suggestion’s of dealers: 1) They must note down any complaints about the product or any defect and lodges with the company’s sales man. 2) They must supply the product, whenever there is demand because it may lead to diversion of mind to other product. 3) They must also study the strategy of other products i.e. its competitors. 4) They must be very alert to changing situation. 5) They must provide special gift offers for selling a targeted amount of boxes. Own suggestions: 1) They must give add’s in different media but not to stick on to the single type. 2) Cooking competitions should be arranged in the cities to attract the customers. 3) Price should be less than the other products. 4) By the survey most of the consumers suggested to change the colour.


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Conclusion: We have discussed “Marketing of Akshath Refined Rice Bran Oil” with special reference to Sri. Anjaneya Agro Tech (P) Ltd., throughout the course, my main concern was to analyses the current market situation and give suggestion to the firm for better promotion strategy. The result of the survey proves that Indians although being price conscious people now are concentrating on the health and quality factor as well. To have a dominant product in the market, sales promotion is very crucial. The survey conducted in Davangere that is one of the fastest growing cities, well known for educational institution and famous in business field has proved a very good market for refined oil. In the present competitive market the consumers are described as the king. Thus it is very essential that the trading co., should manufacture products and services that satisfy consumer needs. Consumer orientation is importance for creating the brand image in the minds of the consumer thus it is very important for creating brand image in the minds of the consumer.


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CONSUMER QUESTIONNAIRE Dear sir/madam I am very happy to introduce myself as “MADESH.M.B” studying In final year B.B.M as a part of our academic study. I am required to work under a project on any of the management aspects. I have chosen “MARKETING OF AKSHATH REFINED RICE BRAN OIL“ case study of Sri Anjaneya agro tech p.v.t ltd. I request you to spend few minutes to go through these few questions & answer them. The information provided by you will be kept confidentially & the information is purely for academic purpose only. THANKING YOU

Your faithfully, Madesh.

M.B 1) Name: 2) Address:

3) Sex:

a) Male

b) Female

4) Age:

a) 20-30

b) 30-40

c) 40-50 5) Marital status:

d) Above50 a) Married

b) Unmarried

6) Monthly/Annual

a) 5000-10000

b) 10000-20000

c) 20000-30000

d) 30000 and above


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7) Which brand of refined oil do you use? a) Saffola gold

b) Nutrlite

c) Ruchi gold

d) Akshath

If other please specify

:

8) What factors motivated you to use Akshath refined oil?

a)Health

b) Price

c) Quality

d) Quantity

e) Advertising

f) Brand

g) Dealers influence

h) Others

9) Are you satisfied with regard to the purity of Akshath oil?

a) Yes

b) No

10) IN what quantity do you need Akshath oil?

a) ½Liter Pouch

b) 1 liter pouch

c) 5 liter can

d) 10 liter can

11) What is your opinion about the existing pack? Do you want any kind of

changes?

12) Do you get the oil at the right time?

a)Yes

b) No

13)Do you get the oil in majority of shops? a) Yes


b) No

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14) Opinion about colour and smell ?

15) Have you come across any adulteration in Akshath oil?

a)Yes

b) No

IF yes state the type of adulteration:

16) Please offer some suggestions to improve the oil, to reach your

expectation’s

Date: Place:

Signature of the respondent

GENERAL CONSUMER QUESTIONNAIRE


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Dear sir/madam I am very happy to introduce myself as “MADESH.M.B” studying in final year B.B.M as a part of our academic study. I am required to work under a project on any of the management aspects. I have chosen “MARKETING OF AKSHATH REFINED RICE BRAN OIL” case study of Sri Anjaneya agro tech Pvt. ltd. I request you to spend few minutes to go through these few questions & answer them. The information provided by you will be kept confidentially & the information is purely for academic purpose only. THANKING YOU

Your faithfully MADESH.M.B

1) NAME

:

2) ADDRESS

:

3) Sex:

a) Male

b) Female

4) Age:

a) 20-30

b) 30-40

c) 40-50

d) above50

5) Marital status:

a) Married

b) Unmarried

6) Monthly/Annual Income: a) 5000-10000

b)10000-20000


c) 20000 above

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7) If yes which type of refined oil do you use? a) Sunflower

b) Soyabean oil

c) Rice Bran Oil

d) Ground Nut

8) Which brand of refined oil do you use? a) Saffola gold

b) Nutrlite

c) Ruchi gold

d) Akshath

If other please specify: 9) What factor motivated you to use the particular brand refined oil? a) Health

b) Price

c) Quality

d) Quantity

e) Advertising

f) brand

g) Dealers influence 10) Are you satisfied with regard to the purity of your brand oil? a) Yes

b) No

11) In what quantity do you need your refined oil, in pouch or cans? a) ½liter pouch

b) 1 liter pouch

c) 5 liter can

d) 10 liter can

12) What is your opinion about the existing pack? Do you want any kind of changes?


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13) Do you get oil at the right time & at majority of shops a. Yes

b) No

14) Have you ever tried Akshath refined rice bran oil? a. Yes

b) No

If yes state how was it, if no give reason:

15) How you felt about the quality of the edible oil that you are using? Give your opinion to the 5 point likart scale. a) Excellent d) Not satisfied

b) good

c) satisfied

e) bad

16) Do you recommend Akshath rice brain oil to the potential buyer? a) Yes

b) No

17) Which price do you think will be more suitable for 1 liter? a) 50-55

b) 55-60

c) 60-65

d) 65-70

18) Do you need any improvements in your edible oil?

19) Dose the colour of oil matters you while purchasing? a) Yes

b)No


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20) Who imposed you to buy the existing oil that you are using? a) Friend

b) Dealer

c) Advertisements

21) Which type of media advertisements attracts you to buy oil? a) T.V d) Wall paints

b) News paper

c) Flex boards

e) Other

22) When would you like to try a new oil when there is an? a) Attractive offer

b) Attractive price

23) Please give us few suggestion’s with regard to refined oil?

Date: Place:

Signature of the respondent


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Bibliography ➢ Text book Philip Kotler ➢ SEA book ➢ World oil magazine ➢ Google.com ➢ Ask.com ➢ Oilseed.com ➢ Akshath.com


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rice bran oil project

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