Industrial Analysis

Introduction
Modi Naturals Ltd. is an Indian company that manufactures edible oils.

Modi Naturals Limited is headed by Anil Modi, Chairman and Managing Director. He has been
working in the edible oil industry for over 40 years.

The edible oil industry in India plays a crucial role in the country's agricultural and food
processing sectors. It is one of the fastest-growing industries, driven by factors such as
population growth, increasing disposable incomes, changing dietary patterns, and rising
awareness of health and wellness. The industry comprises the production, refining, and
marketing of various types of edible oils, including mustard oil, soybean oil, sunflower oil, palm
oil, and others.

There is a significant market for edible oils in India, with a market size exceeding $100 billion.
There are a few large players in the cooking oil industry, including Adani Wilmar, Ruchi Soya,
and Modi Naturals. The Indian market is one of the largest consumers and importers of edible
oils in the world. Various players are involved in the production, processing, refining, packaging,
and distribution of edible oils.

SWOT Analysis of Edible Oil Industry: Strengths

1. Strong domestic demand: India's large population and increasing disposable income drive the
demand for edible oils.
2. Diverse product portfolio: The industry offers a wide range of edible oils, including mustard
oil, soybean oil, palm oil, sunflower oil, etc., catering to different consumer preferences.
3. Established distribution network: Companies in the industry benefit from an extensive
distribution network to reach consumers across the country.
4. Technological advancements: Continuous research and development efforts lead to improved
production processes and product quality.

Weaknesses:

1. Dependence on imports: India heavily relies on imports to meet its edible oil requirements,
making the industry vulnerable to global price fluctuations and supply chain disruptions.
2. Price volatility: The prices of edible oils can be volatile due to factors like weather conditions,
global demand-supply dynamics, and government policies.
3. Environmental concerns: The industry faces challenges related to sustainability, such as
deforestation and ecological impact due to palm oil production.

Opportunities:

1. Increasing health consciousness: Growing awareness about health and wellness is driving the
demand for healthier edible oil options, such as cold-pressed oils or oils low in trans fats.
2. Export potential: Indian edible oil manufacturers can explore export opportunities to cater to
the global market's demand for quality oils.
3. Government initiatives: Initiatives like the Pradhan Mantri Kisan Sampada Yojana and Make
in India campaign provide support and incentives for the development of the food processing
industry, including edible oils.

Threats:

1. Intense competition: The edible oil industry in India is highly competitive, with numerous
domestic and international players vying for market share.
2. Regulatory challenges: Changing government regulations, quality standards, and
import/export policies can impact the operations and profitability of companies in the industry.
3. Price sensitivity: Consumers in India are price-sensitive, making it challenging for companies
to maintain margins while offering competitive prices.
ETOP Analysis for the Edible Oil Industry:

Environmental Factors:

a) Climate change and its impact on crop yields.

b) Sustainability practices in oilseed cultivation and processing.

Technological Factors:

a) Advancements in oil extraction and refining technologies.

b) Adoption of automation and digitization for efficient operations.

Organizational Factors:

a) Market competition and consolidation through mergers and acquisitions.

b) Supply chain management and logistics optimization.

Political Factors:

a) Government policies and regulations related to edible oil production, quality, and pricing.
b) Trade agreements affecting imports and exports.

Capacity Analysis -

The total installed capacity of the edible oil industry in India is around 200 million tons per
annum. The top five players in the industry account for around 60% of the total capacity.

The edible oils market is expected to grow significantly, with a projected value of USD 268.9
billion by 2027, up from USD 212.6 billion in 2022, at a CAGR of 4.8% from 2022 to 2027.
Detailed profile of one distinguished top management personnel in the industry:
One of the distinguished top management personnel in the Indian food processing industry is Mr.
D.D. Modi, the founder and chairman of Modi Naturals Ltd. Mr. Modi is a visionary leader who
has played a key role in the growth of the Indian food processing industry. He is also a strong
advocate for sustainability and social responsibility.

Major Competition -
Major players in the industry (brief about top 5): The top five players in the edible oil industry in
India are:

Adani Wilmar Limited: Adani Wilmar is a joint venture between the Adani Group and Wilmar
International Limited. It is one of the largest players in the edible oil industry in India. The
company offers a wide range of edible oils under popular brands like Fortune, King's, and Raag.
Adani Wilmar has a robust distribution network and operates several manufacturing plants across
the country.

Ruchi Soya Industries Limited: Ruchi Soya is a leading integrated edible oil player in India.
The company is known for its flagship brand, Ruchi Gold, which offers various types of edible
oils. Ruchi Soya has a strong presence in both the consumer and institutional segments. In 2019,
the company was acquired by Patanjali Ayurved, a prominent Indian consumer goods company.

Cargill India Pvt. Ltd.: Cargill is a multinational company with a significant presence in the
edible oil industry in India. It operates in various sectors, including agriculture, food, and
financial services. Cargill offers a wide range of edible oils under brands like Nature Fresh,
Gemini, and Sweekar. The company has a strong focus on quality, innovation, and sustainability.

Marico Limited: Marico is a well-known consumer goods company in India that operates in the
edible oil industry. It offers edible oils under popular brands such as Saffola and Parachute.
Marico has a diverse product portfolio, including cooking oils, health oils, and edible oil-based
products. The company is known for its innovation and marketing strategies.

Godrej Agrovet Limited: Godrej Agrovet is a subsidiary of the Godrej Group and has a
significant presence in the edible oil industry. The company offers edible oils under the brand
name "GODREJ." Godrej Agrovet has a strong distribution network and focuses on providing
quality products to consumers. The company also emphasizes sustainable sourcing and
production practices.

GDP Contribution & growth Trends –

The edible oil industry contributes around 2% to India's GDP and 5% to India's industrial output.
The edible oil industry in India is expected to grow at a CAGR of around 6% in the coming
years. The growth of the industry is being driven by a number of factors, including:

a) Rising demand from a growing population.

b) Increasing urbanization.
c) Growing awareness about the health benefits of consuming edible oils.
d) Rising disposable incomes.

Important players in the sector with their market share :-

Here are the important players in the edible oil sector in India, with their market share in 2022:

Market Share
Rank Company
(%)

1 Adani Wilmar 23.8

2 Ruchi Soya Industries 13.2

 Mother Dairy Fruit & Vegetable Pvt.
3 9.2
Ltd.

4 Marico Ltd. 8.5

5 Gokul Agro Resources Ltd. 7.5

6 Cargill India Pvt. Ltd. 6.5

7 Indo Rama Oil & Fats Ltd. 5.5

8 Venky's (India) Ltd. 4.5

9 Sunshine Oils & Fats Ltd. 4.0

10 North India Oil Industries Ltd. 3.5

As you can see, Adani Wilmar is the market leader in the edible oil sector in India, with a market
share of 23.8%. Ruchi Soya Industries is the second-largest player, with a market share of
13.2%. Mother Dairy Fruit & Vegetable Pvt. Ltd., Marico Ltd., and Gokul Agro Resources Ltd.
are the other major players in the market.

The edible oil sector in India is highly competitive, with a number of large and small players.
The top five players account for about 55% of the market share. However, there are a number of
emerging players that are gaining market share.

The edible oil sector is expected to continue to grow in the coming years, driven by factors such
as rising incomes, increasing urbanization, and changing dietary habits. The demand for edible
oil is expected to grow at a CAGR of 6-7% in the next few years.
 Here are some of the key trends in the edible oil sector in India:

 Increasing demand for healthier oils, such as olive oil and rice bran oil.

 Growing popularity of packaged edible oils.

 Increasing focus on sustainability and traceability.

 Rising competition from global players.

The edible oil sector in India is a dynamic and growing market. The sector is expected to
continue to grow in the coming years, driven by a number of factors. The key players in the
market are investing heavily in research and development, new product development, and
marketing. They are also expanding their distribution networks to reach more consumers. The
edible oil sector is a promising sector for investment and growth.

Here are some additional details about Modi Naturals Limited:

• The company was founded in 1974 by Anil Modi.

• The company is headquartered in New Delhi, India.
• The company has a manufacturing facility in Pilibhit, Uttar Pradesh, India.
• The company's products include edible oils, rice bran oil, and oleev active.
• The company's products are sold in India and exported to over 50 countries.
• The company is listed on the Bombay Stock Exchange.
 Company Profile

Modi Naturals started in 1974, under the visionary leadership of Mr. D. D. Modi. Start from
humble beginnings, by setting up an edible oil factory in Punjab, to getting listed at the Bombay
Stock Exchange, all the way to becoming the largest processors of Rice Bran in India – the
journey has been a momentous one.

As our expertise and competence at natural oil processing grew from strength to strength over
the decades, the company which started off as Anil Modi Oil Industries Limited, evolved into
one of the most trusted and well-known names in the industry – Modi Naturals Limited.

MISSION
To deliver good health, naturally

At Modi Naturals, we believe that good health is at the centre of happy living. Keeping this idea
at the heart of every decision we make, ours is a decades old legacy of creating natural products
that assure a healthy way of life for all of our consumers, so that they can cherish every moment
that life has to offer.

Our mission extends from healthy naturally to happiness for all. We reinforce our commitment to
society with a three dimensional sustainability program that helps bring happiness to hundreds of
farmers and their families, educates their children and protects the environment.
VALUES & PRINCIPLES

Integrity
a) MNL always practice the highest ethical standards and honor our commitments.
b) MNL uphold the values and principles of Modi Naturals in every action and decision.

Leadership
a) We are leaders in all areas of our business with a strong commitment to delivering leadership
results.
b) We attract the best talent in the marketplace and give them the skills and opportunities they
need to become leaders.
c) We recognize and seize opportunities for growth that builds upon our strengths and
competencies.

Commitment
a) We are committed to living a high-performance culture.
b) We learn from our experiences and search for better ways.
c) We accept personal accountability to meet our business needs, improve our systems and help
others improve their effectiveness.

Trust
a) We respect our MNL colleagues, customers and consumers, and treat them as we want to be
treated.
b) We believe that people work best when there is a foundation of trust.
c) We work together to create a culture of inclusion.

Product Brands Under Modi Naturals –

Oleev: A range of olive oils, including extra virgin olive oil, extra light olive oil, and pomace oil

Rizolo: A range of rice bran oils.

Miller: A range of cooking oils.

Olivana: A range of olive oil products for natural body massages.
Pipo: A range of packaged foods, including ready-to-eat popcorn, Peanuts, etc.

Awards & Recognition

Over the years, MNL has been at the forefront of technical, organizational and social innovation.
For that we have been awarded time and again at different levels.
ISO 9001:2008
In 2008 MNL achieved its ISO certification to further the quality assurance to its stakeholders.
AGMARK
MNL received awards for being the largest processor of Rice Bran in India for three consecutive
years from 2003-05. This award, instituted by the Solvent Extractors’ Association of India, was
presented to the chairman Mr Anil Modi from the Ministry of Food Processing Industries of
India.

Innovation at Modi Naturals -

“At MNL, we believe in looking beyond…”
We focus on innovations that mean something to society, every day. We challenge convention
and reinvent the way we do business to win big at the market and to serve the consumer better,
faster and at optimum cost.

The most important form of our energy comes from the people who work with us. Learn about
how each person at MNL contributes in their own way towards one of the pillars of our growth,
while creating enriching careers for themselves.

R & D Centre-

Our R&D facility and team are constantly in search of better products and better ways of making
them.

Currently we have several ongoing projects to improve our:

Edible Oil Packaging

Quality of crude oil from solvent extraction
Bio-fuel efficiency
We are also continuously working on a range of new products and categories to make the lives of
our consumers better.

Here are some summary statistics about Modi Naturals Ltd :

• Turnover: INR 2,000 crores (USD 275 million)
• Number of employees: 2,000
• Headquarters: New Delhi, India
• Website: https://modinaturals.com/
Here are some other details about the company:

• Modi Naturals was founded in 1974 by D.D. Modi.

• The company is headquartered in New Delhi, India, and has manufacturing facilities in
Punjab and Uttar Pradesh.
• Modi Naturals is a publicly traded company and is listed on the Bombay Stock Exchange.
• The company has a strong focus on sustainability and social responsibility.
• Modi Naturals is committed to providing healthy and natural food products to consumers
around the world.

Here are some of the company's recent achievements:

• In 2022, Modi Naturals was ranked as one of the top 50 food companies in India by the
Food Processing Industry Development Council (FPIDC).
• In 2021, the company was awarded the "Best Sustainable Food Processing Company" by
the World Food India Awards.
• In 2020, Modi Naturals was recognized as one of the "Top 100 Companies for Women
Empowerment" by the World Economic Forum.
Modi Naturals is a growing company with a strong commitment to sustainability and social
responsibility. The company is well-positioned to continue to grow in the years to come.