MAHESH EDIBLE OIL INDUSTRIES LIMITED

By MRV Rakesh Pratheek Reddy Rishika Singh Divya UKR Prasanth

Set up by Ram Babu Rathour in the early 1960s Door-to-door selling of loose mustard oil. Diversified into mustard seeds. Haryana and West Bengal Ram Babu accompanied the truck for delivery to eliminate transit costs and collect payments . Kanpur. wheat and cereals Purchased mustard seeds from farmers in Shamsabad and sold to mills in Delhi. pulses.

very ambitious. calculative and a motivator . optimistic. warehouse and value addition Brij Mohan: Introvert. First hand experience in procurement .SHIV KUMAR : Was a visionary. Pessimist and highly analytical Dinesh: Reserved. extrovert and a driving force Joined Business in 1977. dominating Mahesh: Reserved. confused.

m. Converting and Selling Company bought 40.000 sq. land outside Shamsabad A great achievement: The four brothers together constructed the approach road to their newly bought land Deliver the expected value to the customers and in turn deliver value to the organization Develop a community of customers as well as employees Be totally fair to the stakeholders Build an organization that enjoys freedom on all parameters .Eliminating Middlemen : Higher profits Setting up of own plant : Procuring RM.

Marketing Startegy  Brand name .  Turnover of Rs 2.Procurement  Supply of mustard seed to plant  Lowest procurement price – Add value  100% quality check.  Truck laden with oil had meet with an accident  Sold consignment in Kolkata  Establishing its own channel  Sales in kolkata immediately witnessed a 100% growth .Saloni  Initially in 15 lts tins Penetration in kolkata Finance  Cleared UPFC loan by 1993.  Reinvestment of profit into the business Sales  Marketing unbranded loose oil  Rotate capital very fast  Oil was sold through a broker.90 lakh by 1991.

.Took loan of Rs 16 Lakh at interest of 19% for setting new company Ingenious Plan for efficiency No boundaries were constructed to the plot to avoid dead investment The plan had brick floor to lower the cost Shiva himself being a mobile office Family involvement in business With a installed capacity of 1.25.000 liters per day.

ban on sales of mustard and unpacked oil due to outbreak of epidemic “Dropsy” MEOIL Tapped the vacuum created by passing quality test. Two major area of concern – Production and Packaging Production oriented scheme and streamline the production process Ban on entry of suppliers to the factory . MEOIL sold directly to retailers through its van salesman.Market segmentation – 1 ltr consumer pack( buying needs) Targeted to lower segment and positioned as premium quality oil Govt.

ERP and V SAT to facilitate trade Focus on SWOT analysis Use of e – purchase to get raw material – Open competition New market for Saloni were created (UP. Orissa. Bihar etc.) Incentive scheme for Production team and maintenance personnel Priority on payment realization Market expansion and market penetration MEOIL invested on packing material to minimize the cost of raw material procurement .

Total backward integration. without effecting sales Money was not misappropriated DINESH – Increase market share / man power.Mile stone – Rs 100 Crores turnover Vision – Rs 1000 Crores by 2010 Deep thought & next course of action in order to achieve the dream Achievable or not? SHIV – Back bidding. Organization to handle Rs 1000 crores sales Achieve in existing territory / go national . Contract farming  Procurement of 10 times more raw material – timely delivery & least cost BRIJ – Possible processes – complete financial discipline. company owned oil vending outlets Central sales depot & exports.

MNCs’ approach – 2005 Jan 1st week MAHESH Innovations at the plant Expansion at same site / another plant at – mustard growing area / high consumption market .

All the four brothers were distinct yet were able to carry forward their own family business.  Ability to compare and analyze all the possibilities  Political rapport TRAITS Risk Taking Opportunity finding Visionary Performance Oriented .

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