Meet 4 Indian brands oiling the wheels of FMCG sector, narrowing export-import gap
While more than 60 percent of edible oils in India are imported, several Indian companies are working to not only reduce this dependency but also export to other countries, in an attempt to narrow the export-import gap. SMBStory curates a list of four such companies.
According to a report titled ‘Edible Oil Industry Of India – A Brief Overview,’ India’s edible oil import bill comes to about Rs 70,000 crore annually.
Furthermore, experts believe that even though the domestic edible oil industry is evolving, it will take time for India to become self-reliant in this segment.
However, there are several local players already working towards closing the export-import gap in the industry, contributing towards strengthening India’s $263 billion fast moving consumer goods (FMCG) market.
Some of these companies are not only manufacturing edible oils locally, but are also exporting to different parts of the world.
SMBStory curates a list of four such brands.
Pansari Group
Shammi Agarwal’s great grandfather ran a small grocery shop called ‘pansari ki dukaan’ (grocery shop) in Delhi in the 1940s. Thereafter, his grandfather, Gokul Chand Agarwal, expanded the business by venturing into wholesale trading of edible oils.
This started the journey of .
Later, in 1962, Shammi’s grandfather set up an oil refinery in West Bengal, which produced 180-200 tonnes of vegetable oil every day under Pansari Industries.
Between the 1990s and 2005, the company set up about seven units spread across northern India. Today, the group has grown into a sizable player in the market. It manufactures and sells sesame oil, soya oil, refined oil, mustard oil, and more in India and abroad.
Pansari Group claims to have a market share of more than 17 percent in the Delhi-NCR region and is present across all states in north India.
The brand also exports to 42 countries, including the UK, the US, Canada, Australia, Singapore, etc.
BL Agro
Ghanshyam Khandelwal, Managing Director and Chairman, BL Agro
In 1976, Ghanshyam Khandelwal, a curious teenager, joined his family business Industries that traded oil. At the time, he realised that people viewed oil trading with suspicion. Other challenges like lack of awareness added to the woes of the traders.
After some time, Ghanshyam felt compelled to explore the manufacturing side of the business, and launched a mustard oil brand Bail Kohlu in 1983. The product was trademarked in 1986.
The existing business was transformed into an edible oils company called BL Agro Oils Pvt. Ltd. While it began by importing oil from different parts of the country, it eventually set up its own unit in Bareilly.
Soon, BL Agro expanded its portfolio and started producing and selling other edible oils such as sunflower, canola, soybean, among others. The success gave Ghanshyam the confidence to diversify into food product categories like pasta, vermicelli, nuts, pistachio, raisins, honey, pickle, pulses, etc.
Started with a capital of Rs 10 lakh, BL Agro is now a well-known FMCG brand, which clocked a revenue of Rs 1,654 crore in FY20.
Jivo Wellness
Gurpreet Singh, MD, Jivo Wellness
In 2010, Baba Iqbal sensed uncertainty surrounding the functioning of schools and other NGO initiatives in Himachal Pradesh, Punjab, and other parts of rural north India, that were largely dependent on charities and donations.
This is when the idea of building a business that would also support their charitable activities, as well as contribute to humanitarian initiatives like education, health, and wellness came up.
Baba Iqbal sensed a business opportunity in canola oil that was gaining popularity in countries like the US and Canada, and he wanted to bring it to India as well. This is how the idea of Himachal Pradesh-headquartered Jivo Wellness came into being. With the growing trend among millennials and people to adopt healthier options, canola oil seemed a good option.
Started by Baba Iqbal Singh and his four disciples — Ravinder Pal Singh Kohli, Gurpreet Singh, Jasbir Singh, and Amandeep Singh in 2010 — is a supplier of canola oil, and claims to have an 80 percent market share in the Indian canola oil market, and rakes Rs 165 crore turnover.
Ashok Oil & Food Products
Ashok Oil & Food Products was started by Ramniklal Mehta in 1948 at Shivaji Park, Dadar, Mumbai, and has been an export-focused business in Indian-origin seeds oils in their natural filtered and cold-pressed form.
The company started by dealing in sesame and coconut oil in Mumbai local market delivering to wholesalers and retailers under its brand name Ace.
In the early 1990s, the company started exporting to the Middle East. In 2006, the company shifted its entire processing and packaging plant to Bhiwandi, Thane. Once it received approval from the USFDA for its products, it opened doors for new markets in the UK, EU, the US, and Canada.
Today, the business is run by Ramniklal’s son Dinesh Mehta, Karan Mehta (Dinesh’s son) and brothers Hardik and Hiren.
Karan, who joined the business more than a year ago, has been watching these developments in the domestic market and the emergence of a new Indian consumer class with keen interest. He wants to create a new, premium, healthy edible oil D2C brand, specifically focused on the Indian market.
Ace is also available on Amazon and Flipkart and the company’s own ecommerce store, and within a month of its launch recently has clocked sales worth Rs 1 lakh without any major marketing promotions.
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Edited by Saheli Sen Gupta