8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 1/8

INFO ON SALT

Introduction

India is the third largest salt producing country in the world (after the US and China) with

an average annual production of about 148 lakh tones.

In a very short period of time sufficiency was achieved (in 1953) and made a dent the

export market. Since then, the country has never resorted to imports. Exports touched

an all time high of 1.6 million in the year 2001.

The per-capita consumption of salt in the country is estimated at about 12 kg, which

includes edible as well as industrial salt. The current annual requirement of salt in the

country is estimated to be 60 lakhs tones for industrial use. Caustic soda, soda ash,

chlorine etc., are the major salt-based industries. Besides about 15 lakhs tones of salt is

exported every year.

Sea salt constitutes about 70% of the total salt production in the country. Saltmanufacturing activities are carried out in the coastal states of Gujarat, Tamil Nadu,

Andhra Pradesh, Maharashtra, Karnataka, Orissa, West Bengal Goa and hinter land

State of Rajasthan. Among these States only Gujarat, Tamil Nadu and Rajasthan

produces salt surplus to their requirement. These three states produce about 70%, 15%

and 12% respectively of the total salt produced in the country and cater to the

requirement of all the salt deficit and non-salt producing states.

Private sector plays a dominant role contributing over 95% of the salt production, while

the public sector contributes about 2-3%. The co-operative sector contributes about 8%

whereas the small-scale sector (less than 10 acres) accounts for nearly 40% of the total

salt production in the country.

Salt Works And Acreage Under Salt Production

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 2/8

There are about 10107 salt works, mostly in small sector engaged in the production of 

salt. The total area under salt production is about 5.0 lakhs acres. The salt

manufacturing activities provide direct employment to about one-lakh presons per day.

Distribution of Salt

Railways play an important role in transporting salt from three surplus states to the

entire length and breadth of the country. On an average, 55% of edible salt is

transported by rail from production centers. The remaining quantity moves by road and

waterway.

Iodized Salt

With a vies to ensure universal access of iodised salt for the prevention and control of 

goiter and other iodine deficiency disorders in the country, Salt Commissioner's Officehas been identified as the nodal agency for creation of adequate salt iodisation

capacity, its distribution and quality monitoring at production centers, under NIDDCP.

Salt Department has granted permission to more than 878 salt iodisatios units with an

annual installed capacity of 112 lakh tones so far.

Exports

Export of common salt and iodised salt is permitted under Open General License

(O.G.L.). Salt is exported manly to Japan, Philippines, Indonesia, Malaysia, Nepal, and

Bhutan etc.

India has, for the fist time, exported 32,500 tonnes of common salt to the US during

December 2002, creating a history of sorts.

Liberalizatin and Simplification of Procedure

Following amendments to Central Excise and Salt Act, 1944 in 1996, de-licensing the

salt industry and salt Cess Rules, 1964 in 2001 and introducing self-removal procedure

(SRP) instead of permit system for payment of cess and removal of salt from salt

factories, several registers have been discontinued or re-organised.

August 06, 2002 | Asian Age

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 3/8

Tatas lead branded salt market with 37% share

Competition is hotting up in the branded salt market with Tata Salt, the

blockbuster brand of Tata Chemicals Ltd, emerging as the market leader.

Tata Salt has a market share of around 37 per cent while its closestcompetitor, Annapurna from Hindustan Lever Ltd, is breathing down its

neck with a market share of around 35 per cent, a recent ORG-MARG

retail audit revealed.

The ORG-MARG retail audit showed that the 15 lakh tonnes domestic

branded salt market would witness stiff competition among popular 

brands such as Dandi, Surya and Nature Fresh as they try to grab a

comfortable share, each with intensive marketing strategies and

advertisement campaigns. The ORG-MARG figures revealed that during

the financial year ended March 31, 2002, on an average basis, Tata Salt

grabbed a market share of 36.58 per cent, while Annapurna’s marketshare touched 34.46 per cent.

DCW Home Products Ltd’s Captain Cook (now with HLL) had 7.78 per 

cent market share and other brands such as Dandi, Nirma Shudh and

Natural Fresh had market shares of 0.97 per cent, 1.37 per cent and 0.14

per cent respectively. In March 2002, the market share of Tata Salt

touched 39 per cent, while Annapurna’s market share during the same

period was around 30 per cent. According to analysts tracking the

industry, the recent entrant to the branded salt category is Dandi salt.

The brand is being advertised heavily on the regional channels and it has

managed to gain around 0.97 share of the branded salt market.

However, they said that the unbranded sector continues to control a

sizeable share of the overall salt market in the country. Meanwhile,

sources said that Tata Chemicals has already initiated new efforts to

involve and engage its business associates in marketing and strategy

processes to enhance the brand muscle of Tata Salt.

The company has awarded Bates India with the creative duties for their 

flagship brand. The account, which was previously with Publicis India, is

valued at Rs 8 crores in billing terms. Tata Chemicals had recently

conducted customised training programmes for its channel partners —

distributors and their field force — with the aim of making Tata Salt’sposition even stronger in the Indian market.

These programmes are part of a long-term process by the company to

build and improve partnerships with its marketing and distribution

partners, better teamwork between manufacturer, marketeer and channel

partners and leverage resources in a focused manner. Mr Nikhil Thacker,

senior analyst with Sushil Finance Consultants Ltd, said: "Currently, salt

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 4/8

manufacturers are pushing their brands through their strong marketing

networks.

While Captain Cook is positioned on the basis of its unique selling point,

the free flowing nature of its salt, Tata Salt is positioned on the purity

platform and Annapurna is positioned on the health benefit impact of theiodine content in the salt." Tata Salt, the first branded salt in the country,

was launched in 1983, DCW launched its brand in 1991 and Hindustan

Lever’s Annapurna was launched in 1996.

Other FMCG companies such as Dabur India and Marico Industries have

also got a presence in the salt market, though insignificant, with their 

brands — Nutra salt, a low sodium salt and Saffola Salt, which is a

mineral enriched low sodium salt respectively. Both the above brands are

positioned on the health platform and are priced at a significant premium

to the normal salt brands.

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 5/8

Farm centres

Investor relations

Life @ TCL

Media centre

Follow us onTop of Form

search

rank[d]

1

home | contact us |

--- Select product ---

 

Tata Salt - Desh Ka Namak

Tata Chemicals pioneered the iodised branded

salt movement with its launch of Tata Salt in 1983.

This has transformed into a national movement

over the past two decades. Tata Salt is the first

salt in India to be manufactured using the vacuum

evaporation technology.

This pioneering brand has played a role in the

battle against iodine deficiency and set standardsin the category for hygienic production thus

satisfying the latent need of a high quality

branded salt in the country.

In India, salt and integrity have a connection that stretches back to a time much

before Tata Salt was born. Tata Salt has drawn on India’s rich relationship with

salt to deliver a product that embodies reliability, honesty and credibility, qualities

that emanate from the Tata creed of business.

The company continues to educate consumers across the country about the

benefits of using an iodised and pure salt.

A measure of what the brand has come to mean to its consumers across the

country has been expressed in the Brand Equity ET Survey 2008, conducted byAC Nielsen, wherein Tata Salt has been ranked as the Most Trusted Food Brand

in India. The Desh Ka Namak has also been ranked the No. 3 Most Trusted

Brand across categories in the same survey.

Market

Tata Salt today has a 60 per cent market share in the national branded salt

segment. It sells an average of 40,000 metric tons per month and is available for 

its consumers at over 12 lakh retail outlets (source: Nielsen Retail Audit,

December 08).

home > products > salt > tata salt

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 6/8

Product

Consumed by nearly 40 million households each month, Tata Salt is a vacuum

evaporated iodised salt produced by Tata Chemicals at Mithapur, on the western

coast of Gujarat in one of the most integrated inorganic chemicals complex in

India.

It is manufactured through a technologically advanced production process byevaporating sea brine in steam-heated vacuum evaporators and is almost

completely free from extraneous matter to reach consumers in the purest possible

form. Tata Salt has a fine crystalline structure and dissolves very quickly.

It contains requisite amount of Iodine that ensures proper mental development of 

children and also prevents iodine deficiency disorders in adults. It undergoes

stringent quality standards prior to its distribution to different parts of India.

Applications

Due to its purity and reliable quality, Tata Salt is widely used by hotels and

restaurants, housewives, and by manufacturers of packaged snacks, colas and

namkeens.

As a salt Tata Salt enhances and accentuates the flavour of vegetables and meat

to add the required taste in food. Additionally, as a carrier of the essential nutrient

iodine, Tata Salt supports in its own way, India’s public health campaign against

iodine-deficiency disorders.

Tata Salt is available for consumers in 4 Convenient Pack Sizes as follows:

Brand Pack Size

Tata Salt 1kg

Tata Salt 2kg

Tata Salt 500g

Tata Salt 100g

Ad Campaign

“Ghul-Mil Ke Rehta Desh Mera”

Tata Salt’s current advertising campaign - “Ghul Mil” demonstrates the purity of 

Tata Salt through its ability to completely dissolve in water. In fact a parallel can

be drawn between Tata Salt and the people of the nation who come together as

one, whatever be the occasion.

“Deshwasiyon sa hi poora ghul mil jaata hai 

desh ka namak, jo hai iski shudhta ki pehchaan.” 

The Ghul Mil spirit comes alive in the way we Indians dissolve completely in our 

culture irrespective of diversity.

This is visually expressed in the advertisement through a montage of situations

where a diverse set of people from across the country come together for the

celebrations of various Indian festivals be it a Holi celebration which is a

kaleidoscope of colour, at an Onam Sadhya meal or at a Baisakhi celebration.

The ad has a catchy jingle:

“Ghul mil ke rehta desh mera

Har rang mein ghulta desh mera

Zubaan pe rishte pakaata desh mera

Ghul mil ke rehta desh mera

Rishton mein chalakta

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 7/8

Yaari mein pakta

Tyoharon se banta desh mera

Ghul mil ke rehta desh mera”

Few Quotes by Consumers for Tata Salt

“Jaise zindagi ke liye saans ka hona zaroori hai, waise khane ke liye Tata namak

ka hona zaroori hai” – Pallavi Gupta, Devendra Nagar, Raipur 

 

“Hum Tata namak bachpan se khate aa rahe hain, iske alava doosra namak

hamen pasand nahin ha.i” – Shubha Tiwari, Raipur 

 

SAFFOLA SALT

Mumbai, Dec 21: Shower them with brands, or open up the big umbrella? Marico Industries has

opted for the latter, with an extension of the Saffola brand equity, a 30-year old kardi oil brandassociated with "the heart of a healthy family", to salt which forms part of a larger purpose: todevelop Saffola into a strong umbrella brand riding on its age-old USP of "good for the heart".

"There was a need in the marketplace for such a product which cannot be directly compared toother branded salts because of the price premium that Saffola salt commands," says MaricoIndustries Ltd chief executive officer (health care) Pranab Datta.

Saffola salt is priced at Rs 25 for a one kg jar (this is the first time that the most common foodingredient salt is being introduced in a jar form. The price premium is partly due to thisadditional cost). The company has launched the salt in select towns like Mumbai, Delhi,Chandigarh, Calcutta and Pune at a special price of Rs 20. The pricing may, however, put off aconsumer whois used to paying Rs 6 to Rs 7 for a kg of common salt.

Datta defends the move as "a complete value to the consumer who gets a re-usable jar along withthe salt. The company may later look at introducing other sizes and try to cut down on the costwhich would eventually bring down the price to the consumer. However, this price would still beat a slight premium over other branded salts in the market due to its unique qualities," said Datta.Saffola edible oil, the original successful product of Marico under the brand name, is also pricedat a premium of 10 per cent to 15 per cent over competitor brands. Saffola contributes 18 per cent to the company's Rs 490 crore turnover.

While the company's cost on the product is not known, it is a general trend to keep the maximumretail price in the initial launch stage at a cost-plus- minimum margin.

Marico Ltd has been on a brand extension spree since it successfully extended the equity of 

`Parachute', its flaghsip brand last year in the value-added hair oilsmarket. The company isknown for taking a lead in creating new product segments, as Datta puts it, "We do not want to be in the me-too segments."

But why salt for Saffola, well known among those health conscious consumers? The thinking behind extending the brand to the common salt was simple: "Because salt is the main intake mostconsumers suffering from hypertension, a common heart ailment, are asked to cut down on. Wehave tested the salt with doctors and have been introspecting on the concept for over a year now.It involves, in addition to iodising the salt, a reduction of around 25 per cent of sodium which has

8/8/2019 Info on Salt

http://slidepdf.com/reader/full/info-on-salt 8/8

 been substituted by an equivalent amount of potassium. Further, we have not compromised onthe taste element," says Datta.

The company has not yet launched any conventional modes of promotions like advertising. Dattafeels that the Saffola-conscious consumer is the company's primary target and that would meanfour lakh households. Saffola oil has been tagged on towards educating the Saffolauser about the

salt which would act as a direct promotion to reach out to the primary consumer. This acts as atwin offer, while Saffola oil is for cholesterol, the salt is for hypertension.

As far as penetration is concerned, Saffola salt, like the oil, will be an urban phenomenon.Although Saffola salt has been launched without much fanfare, Datta claims that repeat purchases since its launch a few days back are commendable.

Branded salt accounts for 20 per cent of a five-million tonne market, say some industry analysts.Valued at Rs 500 crore, the market is growing at 20 per cent per annum. Tata Salt leads themarket with around 30 per cent market share followed by Hindustan Lever's Annapurna andDCW's Captain Cook at around 15 per cent.