Packaged oil market to double in 3 yrs

Industry data shows loose oil sales in India have dropped significantly from 74% in 2005 to 57% in 2011

The packaged edible oil, which accounts for 40 per cent of the edible oil market at present, is expected to grab 80 per cent market share by 2015, said Pradeep Chowdhry, managing director of Hyderabad-based Gemini Edibles and Fats India Private Limited (GEF India).

He said, awareness among the citizens for use of packaged oil will lead to increase in its market share in India.

Industry data shows loose oil sales in India have dropped significantly from 74 per cent in 2005 to 57 per cent in 2011. In Odisha, the sales of loose cooking oil have plunged from 79 per cent to 55 per cent during the same period.

Increasing use of packaged oil gives opportunity to the company for growth in the future, he told media persons here at the launch of the company’s new one litre PET bottle and 15 litre HDPE jar of ‘Freedom’ sunflower oil.

P Chandra Shekhar Reddy, vice president (sales and marketing), GEF India said, the requirement of edible oil in the country is 16 million tonne annually while the production is only seven-eight million tonne with the balance being imported.

About the consumption in Odisha, Reddy said, the state consumes about 35,000 tonne of edible oil per month. The monthly consumption includes 20,000 tonne palm oil, 10,000 tonne mustard oil, 1,500 tonne each of soyabean and sunflower oil. Similarly, the per capita edible oil consumption in India is 12 litres per annum, whereas the world average is 21 litres.

In 2011-12, the oil company has recorded Rs 1,358 crore turnover. “We are targeting 10 per cent growth in turnover in this fiscal,” Reddy added.

The company markets its products under three brands — ‘Freedom’ for sunflower oil, ‘First Klass’ for palmolive oil and vanaspati and ‘GEF Magik Food Services’ for value-added fats.