Mother Dairy ventures into olive, rice bran oil segment

Mother Dairy, a subsidiary of National Dairy Development Board, is expanding its edible oil portfolio by venturing into olive and rice bran oil segment. The dairy major is already selling vegetable and mustard oils under Dhara brand.

"In line with the changing needs of consumers, we are venturing into the olive oil segment with a new brand "" Daroliva," Mother Dairy CEO Paul Thachil said.

The company aims to achieve 10-15 per cent market share in the olive oil segment within a year of the launch, he said, adding the total market of olive oil in the country is around 2,000 tonnes a year.

Demand for Mediterranean food such as pasta, pizza has risen in the country over the years leading to an increased demand for olive oil as a cooking medium. The demand of olive oil in India is growing at 30 per cent per annum, he said.

Daroliva "" extra virgin olive oil "" is imported from Spain and the packaging of the product is done at Dhara Vegetable Oil & Foods Company facility in Gujarat.

The company has priced the oil at Rs 165 for the 200 ml pack and it would be available in four different sizes.

"Initially, we would be selling olive oil in top 25 markets of the country and gradually, we will move to smaller towns and remote markets," Thachil said.

About marketing strategy, he said, the launch of Daroliva would be supported by print campaign in addition to attractive point-of-purchase material and the company also plans to hold sampling sessions at various retail outlets and malls.

The firm is also venturing into the rice bran oil with it new brand 'Dhara Rice Bran Oil' in Tamil Nadu and Andhra Pradesh market.

"Unlike olive oil, rice bran oil is a mass-based product and we are going to launch it all over the country in a phased manner," Thachil said.

Mother Dairy is manufacturing the rice bran oil in its plant located in Hospet, Karantaka and is planning to sell around 100 tonnes per month in these two markets.

It is expecting an anuual sales revenue of around Rs 80 crore per annum from the rice bran oil segment in the first year.