Mumbai, June 30: Godrej Foods has kicked off a special initiative to push the 15-kilo pack volumes of edible oils in major consuming states like Karnataka, Tamil Nadu and some northern markets. The special initiative aims at boosting volumes.Godrej's brands in packaged edible oils are Godrej Sunflower, Godrej Vanaspati, Cooklite and Zesta palmolein oil. The 15-kilo packs are currently available in Mumbai only. ``We plan to triple our sales in the 15-kilo pack volumes through the special impetus and we have set up task forces to implement the same,'' said Godrej Foods managing director Sudhir Awasthi, who took over the helm on April 1, this year.
The current turnover from the 15-kilo edible oil packs is Rs 80 crore per annum with total volumes of 18,000 tonnes for the company. Godrej Foods has targeted to touch a turnover of Rs 240 crore from the 15-kilo volume packs through this initiative.
The company has, in all, seven dealers in Mumbai to take stock of the 15 kilo edible oil packs. It is in theprocess of appointing dealers in various states to push the bulk volume packs in those market. Task forces which have been set-up for the purpose will identify the markets to implement the initiative. Prior to this, processing units will be identified where edible oils will be processed and packaged.
The prevailing prices of the company's edible oil brands in the 15-kilo volume pack are Rs 505 for Godrej Sunflower, Rs 505 for Godrej Vanaspati and Rs 415 for Zesta. A onelitre pack would cost around Rs 65-70 at the retail end.
Bulk buys in edible oils leads to immense volumes growth for a company, and this has been the order for major players in the edible oils market, an analyst pointed out. Other major players in the branded packaged edible oils market are ITC Agro with its Sundrop brand, Marico Industries with Sweekar and Saffola and Hindustan Lever with Flora.
In the new segment of edible oils in tetrapaks, Cooklite refined sunflower oil was Godrej Foods' first endeavour. Besides, the company wasearlier planning to launch edible oils in sachets to target that segment of consumers who cannot afford to make bulk purchases.
The total volume of the packaged branded edible oils is close to 1.77 lakh tonnes per annum. Loose oil constitutes around 90 per cent of the total oil consumption in the country. The total size of the industry is roughly Rs 3,500 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.