Modi Naturals to enter branded mustard oil segment

Modi Naturals, which manufactures and distributes edible oils, today said it plans to foray into the branded segment through the launch of 'Tarai Shudh' mustard oil in the next two months.

The company, which soft-launched the product in Uttar Pradesh this March, said it is planning to expand its presence in other North Indian states, starting with Uttarkhand this month, followed by Bihar, Jharkhand and Delhi in June.

"We decided to enter the consumer segment after giving due consideration to the growing market for branded edible oil. In India, it is growing at a rate of 25-30 per cent," Modi Naturals Chief Executive Officer Akshay Modi told PTI.

He said the company earmarked an investment of Rs 8 crore for the coming year, of which Rs 4 crore has already been invested in product development and research.

"The remaining Rs 4 crore will mostly go into other working capital and marketing purposes. As of now, we will concentrate on below-the-line activity and enhancement of our distribution network," Modi said.

The company aims at making its product available in around 7,000 outlets across Uttar Pradesh by July, and doubling it later this year.

Besides this, it is also working on expanding its product portfolio, with plans to introduce another branded edible oil later this year.

Modi, however, refrained from disclosing the details of the product or the name of the brand. "We are working on developing a new brand. It will be in the health segment as our focus is on health and fitness products," he said.

The company had a turnover of Rs 125 crore in the last fiscal.