A

PROJECT REPORT ON

“MARKET SHARE OF THE RUCHI SOYA PRODUCTS IN INDORE”

Submitted To:

INDORE INDIRA BUSINESS SCHOOL & RUCHI SOYA INDUSTRIES LIMITED

In partial fulfill of the requirement for the award of the degree of

POST GRADUGATE DIPLOMA IN MANAGEMENT

IN

MARKETING

Submitted By:

Deepshikha Lodha

Management Trainee from

Indore Indira Business School

Under the guidance of:

Amit Pyasi Sir

Assistant Marketing Department

(Ruchi Soya Industries Limited)

DECLARATION

I Deepshikha Lodha, hereby declare that project titled “MARKET SHARE OF THE RUCHI SOYA PRODUCTS IN INDORE” is an original peace of research work carried out by me, under the guidance and supervision of Mr. Amit pyasi sir, (Assistant Marketing department, Ruchi Soya).

The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the award for degree of post graduate diploma in management discipline of IIBS

and is authentic record of our own work.

I hereby declare that above statement is correct to the best of my knowledge.

Date: August 1, 2015 Name: Deepshikha LodhaPlace: IndoreCompany: Ruchi Soya Industries Limited

CERTIFICATE

This is to certify that the project entitled “MARKET SHARE OF THE RUCHI SOYA PRODUCTS IN INDORE” being submitted by Deepshikha Lodha in partial fulfillment of the requirements for

the award of the degree of the post graduate diploma in management discipline of IIBS is a record of bonafide work done by her under my

guidance and supervision.

Mr. Amit PyasiAssistant Marketing departmentRuchi Soya Industries Limited

ACKNOWLEDGMENT

Internship project is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people guiding me in completion of this project.

I wish to express my indebted gratitude and special thanks to Mr. Amit Pyasi sir, Assistant Marketing Department (Ruchi Soya Industry Limited) who, in spite of being extraordinarily busy with his duties,

took out time to hear, guide and keep me on the correct path and allowing me to carry out my Industrial project work at their esteemed organization and extending during the training. I don’t know where I

would been without him.

I express my humble thanks & deepest sense of gratitude to Mr. Amit Mishra sir and Mr. Lalit sir for their judicious and precious guidance

which were extremely valuable for study both theoretically and practically.

Finally, I would like to thank to all sales representatives of ruchi industries(satish sharma sir,goyal sir & shinde sir), who were with us

on field every time and helped to complete this work successfully.

INDEX

I. IntroductionII. Company Origin & Overview

III. Manufacturing ProcessIV. Brands & Flavors of RSILV. Plant locations

VI. Distribution channelVII. Sales process

VIII. Market analysis & share of ruchi products in IndoreIX. SWOT AnalysisX. Conclusion

XI. Suggestions & RecommendationsXII. Bibliography

IntroductionThe objective of this market research & study is to determine the customer as well as retailers preferences regarding different soyabean oil brands, which results in computation of the market share of ruchi soya’s product. The main objective was to find out the market share of the Ruchi products in Indore market. I was given the new Indore area, sales of which was under the vijayvargiya distributor. I met to around 235 retailers in 20 days to take the information related to the topic.

It involves the study of the consumers’ buying behavior and attitudes towards a variety of attributes and factors, which help them in decision-making.

As ruchi soya mainly focuses on soyabean oil, I took brands of soyabean refined oils as the main focus of my research. Mahakosh is the premium segment brand of the company & study shows that most of the people in Indore city prefer mahakosh soya oil covering a strong market share of 70% .

Other than mahakosh, I have taken the ruchi’s two more brands i.e. ruchi star & tulsi gold, then I have also taken competitor brands swaadist, fortune, kriti & others. Others brands include all the remaining brands like sachamoti, madhuri, zayka, kash, avi, prakash,etc.as well as local brands.

Secondary data from various sources like magazines, a journals, websites etc has also been taken. But at the end, the research was limited due to small sample size & area and time constraints.

Company Origin & OverviewRuchi Group of Industries is a well-known Indian conglomerate with business interests in diverse field like FMCG, Oils, Steel, Cement, Power, Real Estate, Dairy Products, Agro Commodities, Logistics and Warehousing. The group has its corporate headquarters in Indore, with offices and plants located at major business centers in the country.

Shri Mahadevji Shahra laid its foundation 60 years back. The vision was to facilitate the farmers to grow and prosper. Soyabean was a new crop with promising future and an awareness drive was undertaken by Honorable Chairman Shri Kailashji Shahra which turned boon for the farmers in Madhaya Pradesh. Apart from the Soyabean Revolution , Ruchi Group diversified into

steel, alloys, power generation, infrastructure and real estate, agro business, commodities, warehousing, logistics services and renewable energy

Ruchi Group today is the largest food and steel conglomerate of Central India with the turnover of $ 6 billion. It is the largest importer and exporter of Soya products in Asia, also having largest share in secondary flat steel market.

RUCHI SOYA INDUSTRIES LIMITED

Featuring among the top five FMCG players in India, Ruchi Soya Industries Limited (Ruchi Soya) is a leading manufacturer and India’s largest marketer of

healthier edible oils, soya food, premium table spread, vanaspati and bakery fats.

It is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, Ruchi Soya has emerged as an integrated player, from farm to fork with secured access to oil palm plantations in India and other key regions of the world. Ruchi soya has access with exclusive oil procurement rights to over two lakh hectares of land in India with a potential of oil palm cultivation. 

The Company has focused on continuous expansion across business verticals to consolidate and sustain its industry leadership. Over the years the Ruchi group has metamorphosed from a trader to a manufacturer & marketer and Ruchi Soya is now a company with a strong portfolio of brands viz. Nutrela, Mahakosh, Sunrich, Ruchi Gold & Ruchi No.1. With a turnover of over US$ 5 Billion, Ruchi Soya Industries Limited is listed on Bombay Stock Exchange Limited (BSE Code: 500368) and National Stock Exchange of India Limited (NSE Code: RUCHISOYA). Social initiatives of Ruchi Soya with a focus on healthcare, education and women’s empowerment, help in creating sustainable

value for society as well as the organisation. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector.

In early 1960s Mr. Mahadeo Shahra created awareness on the potential of soya crop amongst the farmers in the state of Madhya Pradesh in India. He was instrumental in bringing up a small green revolution in the state, by introducing and encouraging Soyabean cultivation on a commercial scale. Shahra family was in the business of commodities trading and subsequently entered the business of ginning and oil milling. The family's efforts, along with that of the others, resulted in soya revolution in Madhya Pradesh. Today Madhya Pradesh is considered as Soya bowl of the country.

India has emerged as the fifth largest producer of Soyabean in the World.

RSIL MANAGEMENT:

NAME DESIGNATIONAnil Singhal

Dinesh Shahra

Dinesh Shahra

Kailash Shahra

Meera Dinesh Rajda

N Murugan

Navin Khandelwal

Prabhu Dayal Dwivedi

R L Gupta

R L Gupta

Sajeve Deora

Vijay Kumar Jain

General Manager - Corp. Accounts

CEO

Managing Director

Chairman

Additional Director

Director

Director

Director

Co. Secretary & Compl. Officer

Secretary

Director

Director – Commercial

Manufacturing Process

There is a proper step by step process to extract oil from the soyabean seeds. Firstly the seeds are stored into saylo through a conveyor. The capacity of one saylo is 45000 metric tons. Then it goes for air cleaning then water pressure is given to it because of which the seeds bulge. After this,crushing session is done, then the product(full fat flakes) goes for oil extraction, which gives 3 products:

1. soyabean oil 2. soya meal i.e. DOC (de oil cake)3. textured soya protein i.e. soya chunks(badi)

Brands & Flavours of RSIL

BRANDS OF RUCHI SOYA

1. Soyabean oil

a. Mahakosh (Premium segment)

b. Ruchi star (Middle segment)

c. Tulsi gold (lower segment)

2 Palm oil

a. Ruchi gold

3 Sunflower

a. Mahakosh

b. Sunrich

4 Mustard oil

a. Mahakosh

b. Mandap

c. Ruchi gold

5 Groundnut oil

a. Mahakosh

6 Cotton seed oil

a. Mahakosh

7 Rice bran oil

a. Mahakosh

8 Coconut oil

a. Mahakosh

9 Vanaspati

a. Mahakosh

b. Ruchi No. 1

10 Bakery

a. Bake fat for Biscuitsb. Bake fat for puff productsc. General Bakery

(Avanti & Tulsi general bakery are cheap segment under this)

Plant locationsRuchi Soya has 33 plant location all over India.17 are owned & 16 are on lease

Following are the 17 owned plant location of Ruchi soya:Madhya Pradesh:

1. Manglia,Indore2. Gadarwara3. Shujalpur4. Guna5. Daloda , Mandsaur

Rajasthan:

6. Kota7. Baran8. Shree ganga nagar

Maharashtra:

9. Nagpur10. Washim11. Patalganga,rajgarh district

Gujrat:

12. Kandla port, Gandhi dham

West Bengal:

13. Haldia

Bihar:

14. Durgawati

Karnataka:

15. Mangalore

Tamil Nadu:

16. Chennai

Andhra Pradesh:

17. Kakinada

Distribution channelDistribution Channel (DC) is a systematic way to deliver the goods from manufacturer to end users.

Sales process

In this sales process, there is a 15 day bargain period where two bargain conditions are there;

1. X-condition: here distributor is liable for transportation.2. Y-condition: company is liable to deliver the goods to the doors of

retailers. This is also known as Freight On Road.

Price is decided on the daily basis from international market i.e. Chicago, which starts from 8:00pm & end at 6:00am.

Some facts about RSIL

No. 1 Exporter of soya meal extractions Ruchi Gold is India’s largest selling single oil consumer brand 6 lakh+ Retail stores across India 2 lakh+ hectares Land access in India for palm oil plantations with exclusive procurement

rights across six states

Madhuri dixit is appointed as a brand ambassador for mahakosh.

Market analysis & Share Of Ruchi Product In Indore

The graph below, shows market share of mahakosh, ruchi star, tulsi gold, swaadist, fortune, kriti & other brands ratio in Indore(new) market as a whole.

It shows that Ruchi Soya is strong in the edible oil in indore. Sales of ruchi soya’s premium segment brand i.e. mahakosh is having highest share of 70% in Indore market in comparision of other brands. And the second competitor is swaadist with 8% of market share.

Mahakosh Soya Ratio70%

Ruchi Star5%

Tulsi Gold2%

Dammani Swaadist Ratio

8%

Fortune Ratio5%

Kriti3%

Others7%

Market share of Indore market

After this analysis of market share of ruchi’s product in overall market studied, I have divided all the areas covered by me in 4 areas head to do area wise analysis of share of brands contributing to the company.

Kanadia road

Pipliyahana

Bengali square

Musakhedi

Tilak nagar

Kanadia road

Khandwa road

Regional park

Bhawar kuan

Khandwa road

Subhash nagar

Pardeshipura

Patnipura

Nandanagar

Malwa mill

Vijaynagar

Manglia

Talawali chanda

Dewas naka

MR10

Marimata

Luv kush square

Sheetal nagar

Vijaynagar

And the ratio of different brands in different area are shown below in the graphical form(pie chart).

Kanadia road have 74% of consumption of mahakosh brand oil but the consumption of ruchi star is only by 1% & tulsi gold is 0% in this area.

Here the second competitor is swaadist brand of dammani with sales of 9% market share.

mahakosh soya ratio

74%

ruchi star1%

tulsi gold0%

fortune ratio5%

kriti6%

swaadist ratio9%

others5%

kanadia road

Khandwa road have 71% of sales of mahakosh brand oil & the consumption of ruchi star is by 2% while tulsi gold is the second largest consuming oil of this area with 9% of market share.

Here the swaadist is at third position with 5% of market share.

mahakosh soya ratio

71%

ruchi star2%

tulsi gold9%

fortune ratio3%

kriti6%

swaadist ratio5%

others4%

khandwa road

Subhash nagar have 70% of consumption of mahakosh brand oil & the consumption of ruchi star , tulsi gold & fortune is having an equal share with 4% in this area.

Here the second competitor is again swaadist brand of dammani with a strong sales of 9% market share.

mahakosh soya ratio

70%

ruchi star4%

tulsi gold4%

fortune ratio4%

kriti1%

swaadist ratio12%

others5%

subhash nagar

Vijaynagar have 74% of share of consumption of mahakosh brand oil & the consumption of tulsi gold is by 2% of people in this area.

The second most selling brand consist of dammani as well as ruchi star with 7%.

Other brands are also doing well in this area by contributing with a 9 % of share in vijaynagar.

mahakosh soya ratio

66%

ruchi star7%

tulsi gold2%

fortune ratio6%

kriti3%

swaadist ratio7%

others9%

vijaynagar

SWOT Analysis

Strength

1. Emphasis on superior procurement, trading skills and tough quality control standards2. Continuous innovation and an effort by the industry to meet consumer needs3. Largest player in India in edible oil category4. Wide and extensive distribution network of 6,30,000 retail stores5. Over 5 Lac retail stores, 90 Company depots,  2000 distributors and a sales personnel of 2006. First exporter of Soyabean meal to south east Asia and middle east markets7. Crushing capacity of about 4 million tons annually in 14 plants, extend over 11 locations

Opportunity

1. Strengthening industry portfolio with other healthy additions2. Control price fluctuations3. Expansion into premium segments and global markets4. Tie- up with restaurants and hotel chains

Weakness

1. No control on raw material prices as product is agro based2. Despite high quality product and good distribution, limited brand awareness compared to some other brands

Threats

1. Food regulation by Government2. Regulation and control by other authorities like NGO’s3. Change in policy of

edible oil by the Government.4. Competition is increasing day by day as many new brands come in the market

Conclusion

After the analysis of the market of Indore, on the basis of the sample studied, the conclusion drawn is that Ruchi Soya is the leading company in the edible oil in the city. Mahakosh oil is the leading brand of the Ruchi Soya which covers the 70% of market in Indore. Consumers prefer the Mahakosh oil more, rather than the other brands. It is having a strong brand image & people preferring mahakosh never like to consume any other brand. Mahakosh oil is available in almost every outlets visited. The extensive distribution network, built over the years, is a major strength for Ruchi Soya Industries Limited. As the distribution channel is very strong sales is done automatically. With its emphasis on providing value goods to consumers, dual strategy of Ruchi on popular and premium range works well. Company is maintaining a good customer relationship by providing value to the customers. Brand Mahakosh stands for natural goodness and health which means they are trying to do benefit positioning. This is a very plus point that right positioning is done without any confusion or doubt & is delivered as well. With kaizens & innovations company is giving the value for money to the customers. Besides all these there are few retailers who are not happy with the margin they get as there is a price fluctuation in modern trade & local trade. Still the sales is increasing because of customer’s demand & brand loyalty.

Hence it is concluded that company is doing well in the market and should continue doing value addition to the products to remain at the top forever.

Now, if we see the overall sales of Ruchi Soya Industries Limited of last 5 years we get the following result:

2008-09 2009-10 2010-11 2011-12 2012-13 2013-140

5,000

10,000

15,000

20,000

25,000

30,000

12,17213,530

16,763

26,22426,485

24,601

sales growth

Rs. in Crores

This shows that there is a fluctuation in the sales of ruchi soya industries limited from last 2 years i.e. from 2012-13. So now it’s a high time to do some innovation in the products of the RSIL.

Although mahakosh in the soya oil segment is doing well in the market but it’s important to create awareness about the other products of the company.

All the internal factors are also doing well. There are lots of opportunities available in market, which company can grab & increase its sales in all the products.

Suggestions & RecommendationsMany new competitors are entering in the market to make the competition tough, so it’s better to defeat them there itself by promoting the brand more & more & creating the clear image of our products in customer mind. This can be done by giving some schemes to retailers as well as distributors. And they should be communicated properly about it.

The brand loyalty created by the company from so many years can also be taken advantage of so that consumers will trust on company & will prefer to use all the other products of the company and should also serve much better than the customer’s expectation.

And I would also like to suggest to the company to change the packaging style of the mahakosh brand 1 liter oil pouch. They can put a cap into the pouch which would make it easy for customers to use it after using the required oil they can repack the un-used oil in the same packet rather than storing it in some other container. And the innovated & attractive pack will invite more customers.

Bibliography

http://www.ruchisoya.com/

http://www.ruchisoya.com/RSIL_Annual%20Report_2013_14.pdf

http://www.ruchigroup.com

ruchisoya data analysis.xlsx