rice bran oil project

INTRODUCTION

1.1 General Introduction

Rice is one of the world's most important food crops and more than half

of the people in the world eat rice as the main part of their diets. Young rice

plants have a bright green color and as the grain ripens the plants turn golden

yellow. A typical rice kernel is ¼ to 3/8 inches long.

Rice bran is an incredible source of the vitamins, minerals, amino acids,

essential fatty acids and antioxidant nutrients that help fight disease and

promote good health. It's no wonder the healthy oil that comes from rice bran is

becoming so successful at replacing hydrogenated oils containing tans fat.

Research is ongoing with this invaluable food source and scientists have found

components critical to human health. Rice bran oil is ideal oil for margarine

and shortening. The flavor gives the good palatability and the desired prime

form crystal provides smooth plasticity and spreading qualities.

Since rice bran oil contains three different kinds of natural antioxidants -

namely TOCOPHEROL, TOCOTRIENOL and ORYZANOL some of the

major antioxidants companies have recently switched their basic oil to rice bran

oil.

Delicate yet flavorful, rice bran oil just may be the world's healthiest

edible oil, containing vitamins, antioxidants and other nutrients - rice bran oil is

rich in vitamin E complex, tocopherols and tocotrienols, a unique antioxidant

known as gamma oryzanol, high quantities of phytosterols, polyphenols and

squalence. Rice bran has a very good shelf life compared to other cooking oils

because of these antioxidants. Rice bran oil is extremely light, versatile and

delicious use it to fry, sauté, in sated dressings, baking, dipping oils and

wherever you use cooking oil. Once you use it you will be amazed cooling

light and healthy is also the best tasting.

Rice bran oil is a source of vitamin E complex, antioxidants and other

micronutrients to help fight free radicals. Rice bran oi! has the best balance of

-saturated, monounsaturated and polyunsaturated fats and recommended by

A.R.G. College of Arts & Commerce 1

such organs as the American Heart Association and the world

health organization. Foods cooked with California rice oil absorb upto 20% less

oil! Less oil absorbed results in reduced calories, better, lighter tasting food and

enhanced flavor and payability. Less oil absorbed also makes it more

economical.

Rice bran oil has been a popular cooking oil in Asian Countries for

decades, where there is measurably lower level of cancer, diabetes, obesity and

heart disease than in the United States. Studies show all of these conditions are

promoted from the use of hydrogenated oils containing trans fatty acids that are

so predominantly used in the USA. Many studies have also shown the unique

cholesterol lowering ability as well as many other health benefits from the use

of rice bran oil.

1.2 Statement of the problems

By seeing the rich growth in edible oil industry. The major competitors

in the current market in this segment are Saffola Gold, Ruchi Gold, Gold

Winner, with so many brands in the segment the customer has a wide variety of

choices. It is up to the customer to make a choice as per his requirement but his

choice can be influenced in many ways. Before purchasing the oil, a customer

look at various aspects like health, price, quality, quantity & brand.

1.3 Objectives of the study

1) To know the factors that influence consumer to purchase Akshath

products.

2) To study the purchase views of Akshath products consumers.

3) To know the existing problems with the products.

4) To know the popularity of brand.

5) To know the health awareness about our products.

6) To know the consumer satisfaction

7) To know the competitors in the market.


8) To know the quality.

9) To know the advertisement effects.

10)To know the marketing strategy adopted by company.

11)To give suggestions for improvement of marketing strategy of Akshath

Rice Bran oil.

12)To know the promotion strategy of Sri Anjaneya Agro-Teen Pvt. Ltd.

13)To know performance of Sri Anjaneya Agro-Tech Pvt, Ltd.

14)To know the people's awareness towards Rice Bran oil and popular

product among the consumer (survey).

1.4 Scope of the study :

The scope of this study is limited to Davangere city and with reference

to Sri Anjaneya Agro-Tech Pvt. Ltd., and the survey is limit - to consumers of

Davangere City. The vastness of the industry and the wide consumer base is

also one of the factors affecting my study.

1.5 Statistical tools employed

a. Charts.

b. Graphs.

c) Tables

d) Diagrams etc.,

1.6 Methodology

Primary and secondary data have been collected and used to bring out

this project report :

1) Primary data have been collected through :

By interviewing and close contact with Managing Director Sri R.

Manjunath, Director Sri A.K. Prashanth, Sri Savan V, Ambarkar.

The manager was personally met to get more information regarding the

following aspects :

a) History of the company.


b) Methods adopted by the company in promoting the product in the

market.

c) Annual turnover and demand for the product.

d) Administrations of sales.

e) Marketing mix strategy

f) And other information.

a) Interview with the distributors of Akshath oil

This was conducted to get the suitable answers for the below questions :

a) To know the distributors activities towards the company.

b) To know the sales methods adopted by them.

c) To get the advice about the better packing and advertisement

policies, which the company should adopt.

d) To get advice about the marketing strategy adopted.

b) Interview with the consumers :

To know the consumers attitude towards the products, a questionnaire

was prepared and administered to 50 users in person.

They were selected at random.

a) The facts affecting consumers to buy Akshath rice bran oil.

b) Opinion about the oil.

c) Types of refined oil preferred by respondents.

d) To know the purchase method of the consumer.

e) To get opinion about the quality and other aspect of the oil.

f) To get suggestion for the improvement of the oil.

2) Secondary data has been collected from:

The website www.seaofindia.com and

SEA handbook 2005

Google websites.


1.7 Limitations

The limitations of the study are as follows :

1. The information provided by the company is assumed to be authentic.

2. The data and opinion collected are assumed to be objective.

3. This study was done. Mainly through the secondary data.

4. Also, time limitation of the study.

5. The survey is conducted only on limited respondent.

1.8 Specific Introduction

Solvent extraction industry is the process of extracting crude edible

grade oil from materials such as rice bran, sunflower groundnut, soybean etc.

Oil is selling at the price of ghee, they say this statement is not far from

reality.

Hence/ India being largest producer of rice bran oil is in a great position

to capitalize on this position and reap huge benefits. India is the fifth largest oil

seeds producer after United States, China, Brazil and Argentina harvesting 20-

22 million tones of various oil seeds against the world production of about 330

million tones. India still retains the largest producer of status of sesame seeds,

linseeds, castor seeds and safflower and the second largest position for

groundnut in the world. Innumerable varities of oil seeds cultivated along with

extensive range of minor and free origin oil seeds generated in the country is

another distinctive feature of the extensive range of minor and free origin oil

seeds generated in the country is another distinctive feature of the Indian oil

seeds economy. Indian vegetable oil industry is consisting of 50,000 oil mills,

600 solvent extraction units, 500 vegetable oil refining and 250 vanaspati units

spread across the country, crushing oilseeds and processing vegetable oils.

Domestic turnover of the vegetable oil industry is Rs. 70,000 crores (US $ 16

billion) and import-export of about Rs. 15,000 crores (US $ 3.5 billon)

consisting of Rs. 10,000 crores for import of edible oils and Rs. 5,000 crores

for export of oil meals, oil seeds castor oil, groundnut oil, and vegetable fats of


tree brone oilseeds. Today, India is also the largest producer of rice bran oil

and producing about 700,000 tones of rice bran oil and promoting it as 'Heart

Friendly Health Oil' in the country.

Location of solvent extraction industry:

Various geographical and economic factors effect the location they are:

1) Climatic conditions

2) Market condition

3) Labour position

4) Water supply

5) Transport

6) Power supply

7) Capital invest

8) Raw materials

1.9 Organization of the Project Report

Chapter 1: Deals with technical aspects of present study such as introduction

about the study, scope, objective of study, methodology, limitations of the

study etc.

Chapter 2: This chapter deals with the company profile of products Akshath

Rice Bran oil.

Chapter 3 : Information about rice brand and health benefits of Akshath Rice

Bran oil.

Chapter 4 : Gives us the detailed information about the world scenarios

Chapter 5 : This chapter discusses the introduction of marketing strategies and

marketing strategies adopted by the company and dealers.


Chapter 6 : This chapter highlights analysis of survey data based on

questionnaire.

Chapter 7 : This chapter presents suggestions and conclusions.


COMPANY PROFILE

SREE ANJANEYA AGRO-TECH PVT.LTD DAVANGERE

2.1 Company at a Glance

Serial

No

Company at a Glance Name of the industrial concern

1 Name of the Industrial

Concern

M/S Sree Anjaneya Agro-Tech PVT Ltd.

2 Address

a) Registered office

“Jayalakshmi

P.B. Road,

Davangere -577002. Sy No. 80/81,

Mahajenahally (NH4) Harihar Taluk

Davangere Dist. Karnataka

3. Directors

a) Sri A.S. Veeranna

b) Sri. R. Manjunath

c) Sri. A.K. Prasanth

d) Sri. G.V. Vikas

e) Sri Savan Y. Ambarkar

f) A.C. Chetak

g) Sri. A.S. Kotrappa

h) Sri. A. Channabassapppa

i) Sri.B.K. Rajashekarappa

j) Sri. K.K. Mahesh

Chairman

Managing Director

Executive Director

Director

Executive Director

Director

Director

Director

Director

Director

4 Line of activity Edible oil extraction

5 Size of the industry Medium Scale Industry

6 Capacity

a) Installed-existing capacity

SEPI –Rice bran/cake

150/200MTS/day

SEPII – Soya bean, rice bran/oil lake

150/200 TS/day Edible oil refinery TS


b)Maximum Operating

Capacity

c) Main raw materials

MTS per day capacity

90%

Rice bran, oil cakes & Soya bean seeds

7 End use of finished products Refined edible oils wholesale and retails

Consumers

8 Turn over in normal Year Rs. 13,118.53 lakhs

Project Cost & Finance:

Cost of the Project Rs. In lacks

a) Land 0.00

b) Building 45.00

c) Plant & Machinery 454.15

d) Miscellaneous fixed Assets 22.00

e) Preliminary and Pre-Operative expenses 8.55

f) Contingencies & deposits 6.30

g) Working Capital Margin 50.00

Total 586.00


Means of finance:

a) Promoters Contribution 120.00

b) Term loan 391.00

c) Grand from Ministry of food Processing 75.00

Total 586.00

9 Financial & Profitability indicators

a) Promoters Contribution

b) Debt equity ratio (1 year)

c) Debt Service Coverage ratio (overage)

d) Internal rate of return

e) Profit before tax @ Maximum Capacity Utilization

f) Break even Point in terms of Sales

33.28

1.68

2.12

20.5 Lakhs

5105.64 lakhs

10 Employment potential 100 per Shares

11 Power requirement 500 Kva

2.2 Background or About the Company:

Sri-Anjaneya AGRO-TECH PVT LTD, was incorporated in the year

2002 with the object of establish the solvent extraction plant & other related

activities in field of edible oils. The Company has Successfully implemented

its first unit of solvent Plant and achieved 95% of capacity utilization within 6

Months from the date of commercial production by achieving a turnover of Rs.

3, 024,04 lakhs of 6 Months period, with this achievement & considering the

increasing demand for oil especially edible oils in India the company has

already successfully expanded to another additional unit of a higher capacity,

the refinery is already in the process of completion and within a period of 3-4

Months will Commence Commercial Production.


Directors profile:

The Company Management is headed by Sri. A.S. Veeranna & Sri. R.

Manjunath. The Directors are Sri A.K. Prasanth & Sri.G.V. Vikas

1) SRI. A.S. VEERANNA

Sri. A.S. Veeranna aged about 62 years. A charted accountant by

Profession, he is actively involved in the Cotton Yarn Manufacturing activity,

he is the chairman of M/S Sree Ganesar Textiles L.TD, and Director of M/S

Sree Anjaneya Cotton Mills (P) Ltd, and having very good experience in the

administration & other activities of the company an experienced person he is

the guiding force & his experience & is an invaluable asset to the company.

2) R. Manjunath:

R. Manjunath Aged about 47 years. He is the Managing Director of

M/S Sree Anjenya Cotton Mills (P) Ltd. And M/S. Sree Ganesar Textiles Mills

Ltd., looking after day today business of this unit. He was got very good

experience in oil extraction and edible oil Refinery. He was looking after the

affairs of m/s. Ravi Vegatable oil co., at Davangere, which had been taken an

lease basis. The unit was having oil expellers, Solvent extraction division. He

was also a director of M/S Sree. Murugarajendra oil industries (P) Ltd.,

Chitradurga, which is having a solvent extraction Plant & Edible oil refinery

unit. A great visionary Mr. Manjunath is the brain behind the whole company

his leadership and dynamic vision is an asset to the company.

3) Sri. A.K. Prashanth :

Aged about 32 years and an engineer by Profession he is involved in the

day today running of the company Mr. Prashanth Can be credited with bringing

technology & innovation to the industry. A very dynamic personality, he is

also in charge of the expansion Project being done by the Company.


4) SRI.G.V.VIKAS:

Aged about 27 years and an Computer engineer by Profession. He is in

charge of the Purchase and the accounts department. His youthfulness energy

is a Source of inspiration to all in the company.

2.3 Associated Concern:

The directors are actively involved indifferent Capacity in their group

companies. These are engaged in Cotton Spinning the brief of some of the

associate concerns are as follows.

a) Sree Anjaneya Cotton Mills P.V.T Ltd, Davangere is engaged in Cotton

Spinning with 21,304 Spindles. This was a sick unit taken over by the

Present directors. They have successfully turned around this sick unit

into a profitable one. Mr. A.S. Veeranna is the Director and Mr. R.

Manjunath, Director.

2.4 Project and Product:

The directors, who have got experience in oil business also thought

about the diversification and decide to put up their first unit of solvent

extraction unit in the year 2003 and able to run it successfully with a 95%

Capacity utilization within 6 Months with this achievement and due to demand

for oil have already set up another solvent Plants.

The Second unit of Solvent Plant is also having a Capacity of 150/200

Metric tons per day of soya beans Seeds and rice bran/oil cakes processing.

The finished Products are edible grade solvent oils and oil extractions.

With the successful running of SEP unit 1 with 95% capacity utilization

and the completion and installation of SEP unit 11 with in the targeted time,

the overall Production of Solvent extracted oils will be around 60 to 75 Metric

Tons per day. This oil we may have to sell to refineries for further processing

to fit to become human consumption.


The directors thought that with the setting up of refinery they could

directly enter into an ever expanding consumers market to sell their refined

edible oils. With this intention they have decided to set up new edible refinery

unit. With the capacity 75 metric tones/ day to process refined oils so that the

new refinery unit will consumer the entire oil produced in both solvent Plants.

By setting up new refinery, raw material for refinery will be readily available.

The proposed Project has been already approved form single window

agency of Karnataka.

2.5 Technical & Marketing Process:

The new technology enzymatic de-gumming technology which is tested

& developed by Indian Institute of Chemical Technology, Hyderabad, and a

Government of India organization under enzymatic de-gumming process is

proposed to be adopted in our new refinery. We are installing the continuous

physical refining technique, against the conventional chemical refining, which

is batch process this will help us in processing high FFA rice bran oil physical

referring of rice bran oil which is having high (Free tatty Acid 9FFA)

percentage means 8-12% as against normal range of 3-5%. The plant will be

designed to process all kind of vegetable oils; however we are concentrating

mainly on RICE BRAN OIL. This is due to the fact that the rice bran oil will

play significant role in augmenting edible vegetable oil supply in the country.

Refined rice brain oil is taking over other refined edible oils etc. in Counties

like Japan, Korea, China, Thailand & U.S.A Rice bran oil is known “HEART

OIL” as the rice bran oil contains CHOLESTROL LOVERING EFFECT due

to ORYZANOL & COTRIENOLS in the oil. Also the “SCALENE” Content

in the rice bran oil is good for skin’s nutrition & maintaining integration of

skin.

2.6. Location & Site details:

The propose plant will be located at Sy. No.80 Mahajenahally,

Davangere District, Karnataka State. The present Solvent extraction unit is


working in the same premises. The place is ideally situated on National

highway.

Land measuring 18-38 acres allotted by KIADB. The company is having

necessary infrastructures like roads, compound, Security etc., Land

development work comprising leveling undulation, formation of internal road,

and etc has already been taken up. The location is suitable for the proposed

activity considering the proximity to raw material Source, availability of

labour, transport, communication & other infrastructure.

The above said land is sufficient for the following:-

a) Factory building

b) Godown

c) Pollution control & other utilities

d) For future expansion

The company main plant i.e. REFINERY PLANT & enzymatic

degumming equipments with M/S GLAMPTECH agro Process Pvt. Ltd.

Mumbai, one of the leading manufactures of continuous physical refinery, with

proven track record. The promoters have finalized for supply of thermic fluid

heating system & chilling. Plant with M/s THERMAX Ltd. These are Major

production Machinery & the suppliers are highly reputed. The detailed list of

plant & machinery is enclosed herewith the major machineries are expected to

be delivered from November 2004 onwards.

2.7 Raw materials & consumables:

The main raw materials are rice bran/oil Cakes. The unit requires 45000

mts / 60000 mts of rice bran/oil cakes at installed capacity per annum. The

proposed location is having a major paddy growing area. There are about 200

rice Mills & oil Mills in & around Harihar Further we can procure rice bran/oil

Cakes from surrounding district of shimoga, Haveri & Bellary where number


of oil Mills & Rice Mills are situated but do not have any solvent extractions

plants which are running in these areas.

2.8 Essential services:

Power: - The unit requires 500KVA Power. The Single window agency of

Karnataka has cleared our application for 500 KVA Power. It also proposed to

install 500 KVA D.G.Set to offset load shedding & power failure.

The directors have are proposed to have STEAM TURIBINE for

generation of power. The steam that is produced for the purpose of in house

use will be passed through the turbine to generate power Around 400 KVA

Power will be generated & the same will be used for our own power

requirements. This will cut down the power cost.

Water: - The requirement of water in the processes is for use in the boiler for

system generation and also in cooling tower. The set consumption after

accounting for re circulation and human consumption is estimated at 100000

liters of water per day. The single window agency has agreed to grant the

permission to draw the water from “SULEKERE NALA” Passing near the

Project location. The Company is also proposed to have its own bore well in

the project. The single window agency of Karnataka has already permitted for

drawing water from SULEKERE NALA.

Steam:- The steam is Major Cost element in the production of Solvent oils.

The company installed the boiler with a capacity to produce 14 ton per hour of

steam. Boiler is a sophisticated which can run an agro waste like groundnut

shells, Paddy help the company to reduce the cost of production and cost of

transportation by using the locally available fuel which are emanating from rice

mill and oil Mills situated in and around the area. The boiler proposed in the

F.B.C boiler (fluidized bed) which will enhance the heat required for

generation of steam & reduce the air pollution.


Man Power:

ADMINISTRATION TECHNICAL

1) General Manager 1) Engineer

2) Chief Accounts 2) Plant Operators

3) Clerk 3) Preparatory Operators

4) Typists 4) Boiler attainders

5) Sales-Clerks 5) Electronics

6) Store- Keepers 6) Others

7) Supervisors 7) Unskilled labourers

8) Attainders

9) Security

The Man Power required is two categories Skilled and Unskilled. The

Skilled workers like boiler operators, plants operator, electricians etc., and the

company has already having the skilled workers who are working in the

existing solvent extraction unit. The additional Manpower required will be

recruited & Trained in the existing plant.

Some of the above manpower which are already available in the existing

setup, and additional people wherever necessary will be recruited & trained in

the existing plant.

Transport:

As the plant will be located near the NH4 required transport would be

available easily. Since from the inception of the company we have not faced

any problem in getting the transportation.

Quality Control:

Company is already having full pledged laboratory for testing the raw

materials and finished goods for the quality control purpose. Additional

equipments are proposed to be purchased & a provision of Rs 9 lakhs has been

made in this project.


Effluents:

1) Company has already taken the permission of pollution control board of

Karnataka, as per their guidance required equipments are already in

place to control water and air pollution.

2) For this unit 11 also the clearance from Single window agency of

Karnataka has been obtained.

3) We propose to install effluent treatment plant to avoid water pollution.

4) Above measures along with any other guidelines/ Measures will be

undertaken as per the prescribed guidelines of pollution control board of

Karnataka.

2.9 Working Capital:

The detailed working capital estimates are to annexure-11. The

Company is having a working capital facility from Canara Bank, Mandipet

branch for the add requirement we are making application for the sanction of

the same & hopeful of getting it.

2.10 Scope of Marketing and Selling Arrangements

The finished products, which the company is proposed to produce, are

solvent oil and de-oiled meal. The Solvent oils are edible grade and are mainly

used in oil refinery units for further processing and selling as refined edible oil

which is an essential & daily consumer able food item. The demand for edible

oil exceeds. The supply and the government of India is spending crores

together in terms of foreign exchange to import edible oil to bridge the gap b/w

the demand & supply. A short fall of edible oil is very huge. The Government

inspite of best efforts to increase the production is not in a position to increase

the production of edible oil in the country; our production would be only a

small portion, which helps substitute the imports to the extent to our

production.


Selling arrangement: The Sales are directly handled by the directors

itself with the help of qualified Staff of the company through commission

agents & brokers.

2.11 Economic Consideration:

Oil is selling at a price of ghee. One says commonly today. The statement

is not for reality in this country the prices of oil and fats are always on the

ascent. The reasons are

a) Over increasing population

b) Rise in the standard of living of bulk of the lower sections of the

population.

c) Demand for the industrial use, soaps, vanaspathy etc.

These factors are increased & continue to increase the demand for the

oil & fats for edible & non-edible purpose. But also the increase in the

production of oil seed crop is not keeping with the increasing demand. So

India has exporter of oils Twenty years ago is forced today, to import oil for

domestic. Consumption by spending invaluable foreign exchanges. Since

there is an sample demand in export market for de-oiled meal, which brings in

valuable foreign exchange to the country. Therefore any propositions to

recover oil from any possible source should not only prove profitable but also

will help in cutting down imports of oils thus saving foreign exchange. Hence

pitting up a new Solvent extraction plant is encouraged by the Government &

attractive for investor also. Further this will contribute it share to solve

unemployment problem by creating an employment to 100 people directly &

indirectly.


2.12 Financial Results of the company


SRI ANJANEYA AGRO-TECH PRIVATE LIMITED

Regd. Office: RMC Link Road, Bamboo Bazaar, Davangere - 577001

SCHEDULE 'R'

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE

ACCOUNTS:

I. Significant accounting policies:

1. Basis of Accounting & Revenue Recognition:

I. The financial statements have been prepared under historical cost

convention on accrual basis and in accordance with the applicable

accounting standards and provisions of the Companies Act, 1956.

II. Accounting policies not specifically referred to otherwise are

consistent and in consonance with the generally accepted

accounting principles and the provisions of the Companies Act,

1956.

III. Sales: a) Revenue from sale of goods is recognized upon passage of

title to the customers net off duties and taxes, cess and insurance.

b) Consignment Sales: Revenue has been accounted for net off

expenses, duties and taxes.

IV. Interest: Revenue is on time proportion basis taking into account

the amount outstanding and the rate applicable.


2. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction. They

are stated at historical cost less accumulated depreciation. All costs

including financing cost, till the commencement of production or put to

use are capitalised.

3. Depreciation:

(a) Depreciation on fixed assets has been provided on SLM method in

accordance with provisions of Schedule XIV to the companies Act, 1956:

(b) Depreciation has been provided on pro-rata basis on the

additions/deductions, if any.

4. Investments:

Investments are carried at cost of acquisition. There is no

diminution in the value of investment.

5. Inventories:

Inventories are carried at lower of cost or net realisable value as

certified by the management, i) Raw materials, stores and work in

progress - at cost or net realizable value whichever is tower. ii) Finished

goods - at cost or net realisable value whichever is lower.

6. Retirement Benefit:

a) Gratuity:

The provisions of Payment of Gratuity Act, 1972 does not apply

since, the commercial operation has been commenced from June 2003.

As such no liability has been determined.


b) Provident Fund:

The employees and employer's contributions have been regularly

remitted in accordance with the Provident Fund and Miscellaneous

Provisions Act, 1952.

7. Bonus:

Bonus has been provided on ad-hoc basis at the minimum rate as

per the Provisions of Payment of Bonus Act, 1956.

8. Taxation:

Provision for Income Tax comprises current tax and deferred tax

charge/release. Deferred tax is recognized subject to consideration of

prudence on timing difference, being difference between taxable and

accounting income and expenditure that originate in one period and are

capable of reversing in one or more subsequent period(s). Deferred tax

assets are not recognised unless there is virtual certainty that sufficient

taxable income will be available against which such deferred tax assets

will be realised.

9. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition or

construction of qualifying assets are considered as a part of those assets,

while other borrowing costs are recognized as expense in the year in

which they are incurred.


10. Related party disclosure -Accounting standard 18:

I) Related Party Disclosures as required by the Accounting Standard 18

issued by the Institute of Chartered Accountants of India are given below;

Sl.

No.

Name Relationship Nature of

Transaction

Amount

(Rs. In

Lakhs)

Outstanding

as on 31-03-

2007 (Rs. In

lakhs)

1 A.K. Prashanth Managing

Director

Remuneration 3.60 Nil

2 Savan Y Ambertcer Executive

Director

Remuneration 2.40 Nil

3 Sree Mallikarjuna

Enterprises, Davangere

Director is the

Partner

Purchase of

Soya Bean

Seeds

64.07 2.26

4 Sree Mallikarjuna

Agencies, Davangere

Director is the

Partner

Rice Bran 741.27 Nil


Production Manager Assistant Manager Mechanical Manager

Quality Control Manager

Salesman Accountant Store keeper Computer Operator

Delivery Boys

Auto Driver

Manager

Director

Organisation chart


Swot Analysis :

Strengths :

1. Consistency in Earning profit. 2. Akshath oil is the only Rice Bran Edible oil in the market of Davangere

city.

Weakness :

There are no weaknesses.

Opportunities :

Growing demand for the health caring oil products.

Threatening :

As this is the only Rice Bran oil in Davangere City, there is no

Competitor for same products. But there is a competition from other oil

company products.


PRODUCT PROFILE

3.1 Details about Rice Bran

Write details Paddy Lusk, Rice bran, Rice proper out put per quintal

Rice Bran: It is the outer brown layer of rice grain. Rice bran forms 8% of

grass Milled rice contains 15-20% oil. 0.4-1.5%wax, 5-8% Proteins, 40-50%

Carbohydrates, and 5-8% Fiber. Rice bran processing & production of oil is

increasing year to year.

Post-Milling Precautions: To avoid the lipase action rice bran has to be

stabilized immediately on Production.

Common Name: Rice Paddy (English), Chawal (Hindi), Dhan (Punjabi) Bhatta

(Kannada)

Bran is a layer b/w husk & endosperm of the paddy grain. There are

18,000 varietes of rice in the world.

Name for bran: Rice bran, Bhatta (Kannada)

The Major Rice producing contents are Asia (Roof mills of the long

Himalaya range & its radiating arms in South East Asia). Africa & America.

3.2. Cultivation condition: Short day plant Rain fed/ irrigated Crop= 39oS

lalitufe (Australia) to 45o N latitude Growing = (Japan) 50o N latitude (china)

below sea level to 1978 meters high above sea land.

Temperature = 16-20o C at flowering time & 18-30oC

Condition = during ripening

Duration= 85-90 days to 240 days in different varieties

Soil = Reverine, aluminum, red yellow, red loamy hill & Sub –

Montane, terrain, laterite, coastal aluminum red sandy, Mixed red & black &

Medium and black.


Seasons= Kharif & Rabi

Harvest = Harvested when Moisture content of the grain is 20-25%

Paddy is dried under shade to 13-14% Moisture before milling.

Grain colour = white & Red

Yields of Rice = All India average 1.67 tones hectare.

3.3 Rice Bran Oil:

India is the second largest producer of rice in the world next to china,

having potential to produce about 10 lakh tones of Rice Bran Oil per annum

form outer brown layer of rice called ‘brain.

Currently the industry is processing about 40 lakh tones of Rice bran by

solvent extraction process producing about 6.5 lakhs tones of Rice Bran Oil per

annum, out of which 6.0 lakhs tones is of edible grade and the balance 0.5 lakh

tones is none edible grade. The research Instates in India & aboard has found

this oil to be“Heart friendly Health oil” with following unique properties

beneficial for maintaining good health.

a) It is good for heart, it contain oryzanol which increase HDL (good)

Cholesterol and lowers LDL (bad) Cholesterol & triglycerides.

b) It has the ideal ratio of saturated Mono unsaturated & polyunsaturated

fatly acids & is the closest to world health organization

recommendation.

c) It is good for skin it contain squares, which improves skin, tone delays

wrinkle formation.

d) It has hydroxy 3 Methoxy Cinnamic acids which stimulates hormonal

secretion & rejuvenates health.

e) It has tocotrienol which helps in maintaining balance of nervous system.

f) It has tocotrienol which has anti-thrombotic & anti-cancer properties.

g) Food tried in refined Rice Bran Oil absorbs 15%.


3.4 Cooking advantages of rice brain oil:

a) Nutritionally Superior

b) Contains more Micronutrients

c) More stable at higher temperature

d) Longer shift life

e) Oil is less sticky, saves Soaps

f) Economical 15% less absorption of oil during frying

g) Gives better taste & flavor to food items.

h) Frying takes less time, saves energy.

3.5 States of rice bran oil in other countries:

a) Rice bran Oil is extensively used in Japan, Korea, China, Taiwan, and

Thailand as premium Edible oil.

b) In Japan, Rice bran oil is more popularly known as“Heart oil”.

c) In recent years, U.S. Scientists has also shown tremendous interest in the

cholesterol lowering properties of rice bran oil.

d) In western countries rice bran oil has acquired the status of a ‘health

food’.

3.6 Model Contract for Edible/Commercial Grade Raw Rice Bran

(The term ‘content’ used herein shall refer to & mean the agreement of

sale/ purchase between the seller & the buyer made on the terms mentioned

below)

Contact No Date-------------------

Place------------------

1) I/M/S --------------------------------------- (herein after called Seller)

The under mentioned goods, as per terms & conditions mentioned below.

Through: Broker (if applicable) ------------------------------------------


2) Goods: India Edible/Commercial grade raw rice bran fair average quality

free from lumps, weevils, not rancid & warranted to contain edible grade

raw rice bran.

Oil: Min 17%

Sand/Silica : Max 3% -Acceptable up to 8%

FFA : Max 10% Acceptable up to 14%

Fiber : Max 10% - Acceptable up to 14%

Commercial grade raw rice bran

Oil : Min 17%

Sand /Salsa : Max 3% Acceptable up to 8%

FFA : Max 10% - Acceptable up to 14%

3) Quantity -------------- Tones each of 1,000 Kilograms

Gross/ net-----------------

4) Price: Rs.------------------------- (Rupees ---------) Per M/T on (including

Taxes levies and/ or duties) gross delivered weight, F.O.R buyer factor /

godown including siding charges wherever applicable.

5) Delivery: R/R to be tendered/dispatched by the seller on or --------- The

good shall be consigned to ----------- Siding and the railway receipt of the

good shall be tendered during the period /on or before ------- or goods shall

be dispatched / delivered free during the period /on or before the period of

delivery shall be deemed to be the essence of the contract. R/R shall be

tendered before 20.30 P.M on working days & before 1.00 P.M on Saturday

if working the responsibility for damage up to 1.00 PM of the Next working

days of the railway following the date on which the R/R is tendered shell be

on sellers account. If R/R’s are tendered or presented after the above

timing, they shall be deemed to have been delivered on

the next working day of the railway . if the due date

falls on a holiday, the procceding working day shell be

considered as the due date. If the goods are not

receieed with in one month from the date of the R/R


buyer shall hae the right to return the R/R to the seller

and claim back the payment made to the

seller .however, the seller has a right to replace the

goods by physical delivery within 15 days after one

month of the date of R/R.the default date in case where

the goods are not replaced to be fixed by the buyer at

his-option either the date of one month of of the date of

R/R of minimum 100 bags shall be accepted shall be

accepted. R/R in which wagon number is not

mentioned or of uncovered wagons shall not be

accepted.

6) Packing:- Uniform, in new gunny bags / sound second had gunny bags

without patents to be supplied by the seller @ his cost.

7) Payment:- ------------% against clean Railway receipt or delivery of the

goods & balance after finalzation of weight & analysis.

8) Quality Allowance:- Should whole or any portion not turn out equal to

warranty as stated in clause 2 above, the goods must be accepted at an

allowance to the buyer at the following rages:

a) For any deficiency in percentage of oil below 17%. The seller will pay

an allowance to the buyer on the basis of 1:1 upto 12% for each percent of

deficit & proportionately for any fraction thereof. If the oil content is below

12% for each percent of deficik and proportionately for any fraction there of. If

the oil content is below.

b)For any excess of Sand and /or Silisa over 3% the seller will pay an

allowance to the buyer on the basis of 1:1 upto 5% for each percent of excess &

proportionately for any fraction there of. Above 5% the seller will pay an

allowance to the buyer on the basis of 1:2 upto 8% for each percent of excess &

proportionately for any traction there of & above 8% the buyer has option to

accept / reject.


c)For any excess of fiber above 10% the seller will pay an allowance to the

buyer on the basis of 1:1 upto 12% for each percent of excess &

proportionately for any fraction there of . above 14% buyer has option to

accept/ reject.

d)In case of edible grade Raw rice Bran for any excess of FFA above

10%. The seller will pay an allowance to the buyer as shown below.

e)10% to 12% 25%

f) 12% to 14% 50%

Of the price variation b/w commercial raw rice bran & edible raw bran.

9) Quality Premium:- For any excess of oil content over 17% the buyer will

pay a premium to the seller on the basis of 1:1 for each percent of excess in oil

and proportionately for any fraction thereof.

b) Sampling & Analysis:- For the purpose of drawing samples. The seller

within 48 hr of the receipt of the written on telephonic intimation of the buyer

informing arrival of goods at the factory, depute his representative to the

factory of the buyer, for samples will be drawn jointly at the buyer’s/ sellers

factory of godown or at the place of delivery by the representatives of the buyer

& the seller from each wagon load /lot lorry & sealed & each one of them shall

be numbered. In cases the seller’s representative is not present as provided

here in above the samples will be drawn by the buyer’s representative & sealed.

The sealed samples will be binding on both parties for analysis reports as

provided below one sealed samples will be retained by the buyer. The buyer

will report to the seller in writing within 20 days after sealing of the samples,

the result of the first analysis. In case the seller so desire, they may send the

second sealed sample to any of the laboratories approved by the solvent

extractors association of India under intimation of the buyer in writing within 5

days on receipt of buyer’s report. On receipt of 2nd analysis result, it should be

communicated to the buyer. Within 5 days on receipt of the analysis report


which shall not in any case be dated later than 15 days from receipt of the

sample by the laboratory. The buyer may accept the same or forward the third

sample to the solvent extractors association of India only if the difference of

any item b/w the first & second analysis is more than 0.5% & in case of oil

more than 0.25% unit Such third any will be called for only for that particular

item of test which is in dispute in previous two analysis. Seller will also have

similar right to act for third analysis with the solvent extractors association of

India under intimation on the buyer. Within 7 days of the receipt of seller shall

inform the buyer of his desire to exercise such option at the time of sending

analysis report of second sample to buyer. At the time of opting for the third

test the seller or buyer will remit the normal analysis charges plus Rs. 10/- for

the respective test & also name of the laboratory which has conducted the

second analysis. The association then shall send under its own seal & code

number the so received sample to any approved laboratory approved for

N.T.S.D contract for G.N. Expeller cake in rotation from the panel but other

than the laboratory which has conducted the second test for item’s of test which

is indispute. The laboratory shall submit to the association the forward the

copies of the analysis report to the buyers as well as to the sellers. In case third

analysis is undertaken the mean of the nearest to analysis of the three shall be

taken as final & binding on both parties. The cost of second analysis shall be

borne by the buyer if the result of the second report exceeds by more than 1%

of the first analysis report, taking first analysis result as basis & the cost of

third analysis shall borne by the party against whom the third analysis is

reported taking the mean of the first and second analysis as basis.

Weighment:- For the purpose of weighment the seller shall within 48 hr of

receipt of the written or telephonic intimation of the buyers informing arrival of

goods at the factory, dispute his representative to the factory of the buyer.

Weighment of goods will be made at buyers factory in presence of buyer’s

sellers representative if present at time of weighment. Ten percent of the total


number of bags selected at random from each lot shall be weighed and the

weight of the whole lot determined on the basis of such ten percent weighment.

If, however, the buyer finds that the weights of the difficult bags vary by more

than two percent from the approximate uniform weight, full weighment may be

made for which extra cost shall be borne by the seller in case seller desires to

have full weighment made, it shall be made for which cost shall be an their

account. If seller’s representative does not arrive at the buyer’s factory or

godown within the stipulated time, the weight taken by the buyer’s

representative will be final & binding on seller.

b) Rejection:- Should any lot or consignment of the goods received under

contract be rejected on A/c of deficiency viz., excess of sand or silica

over 85 or excess of fiber over 14% as provided in class 8, the buyer

shall have the right to ask seller to replace the goods under contract or

tender R/R in replacement there of within 10 days of written intimation

of rejection by buyer. The rejected goods shall be removed from the

buyer’s factory within a period to be specified by the buyer, which shall

not be less than 7 days from the date for rejection. Before value of the

goods, freight, transport & other charges, if incurred. The buyer may

charge reasonable in & godown charges for rejected goods until they are

lifted by seller & payment reimbursed.

c) Godown Rent: - If the goods delivered are rejected, godown rent shall

be charged from the 7th day after fresh rejection at the rate of 25p per

M.T Per day for 7 days, after which period rent shall be charged at the

rate of 50 P per M.T. Per day for a fortnight and at the end of that period

the buyer’s will have right to dispose off the goods at Market rate and

compensate the loss, if any, from the seller.

After rejection the buyer shall give back the goods after weighment, &

maximum shortage in weight to the extent of 1.5% will be permissible. If the

shortage exceeds 1.5% the buyer shall compensate the seller to that extent at

the contract rate.


d) Default:- In the event of the seller failing to complete the delivery of the

entire quantity of goods or part there of within the time stipulated in

clause 5, and/or failing to replace the rejected goods in terms of the

contract within the period of ten days from the date of rejection, the

seller shall be deemed to have committed a break of contract to the

extent and in respect of the goods so remaining undelivered & the

buyer’s shall be entitled to treat the contract as at an end to the said

extent & also entitled either.

a) To treat the contract as cancelled without requiring seller to pay

compensation for breach of contract.

b) To grant to seller extension of period of delivery in case of rejected lots,

such extension to be asked for by the seller and granted by the buyer

latest upto the last date of contract or.

c) To buy the undelivered quantity an seller’s account within 5 days of the

expiry of the delivery period or the period allowed to seller for

replacement of the goods at buyer’s option and recover from the seller

the difference b/w contract price and purchase price. or

d) Without actually buying the undelivered quantity in the Market, to

recover from the seller the difficult b/w the contract price & price ruling

on the last day, as registered by the solvent extractors Association of

India of the original due date or any one of the extended due date

buyer’s option or the replacement period of the extended date.


INDIAN SCENARIO4.1 Indian oilseeds Area, Production and Yield

Oilseeds 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

Groundnut

Area

Production

Yield

7,600

8,640

1,138

7,090

7,370

1,040

7,570

8,980

1,210

6,870

5,250

766

6,560

6,410

977

6,240

7,030

1,127

5,950

4,370

733

sesamum

Area

Production

Yield

1,990

640

322

1,660

570

342

1,670

580

332

1,560

480

308

1,720

520

301

1,670

700

418

1,380

430

311

Rapeseed

Area

Production

Yield

6,540

6,660

1,017

7,040

4,700

668

6,600

5,660

875

6,030

5,790

960

4,480

4,190

935

5,070

5,080

1,002

4,480

3,840

857

Sunflower

seed

Area

Production

Yield

1,930

1,250

646

1,740

890

508

2,000

950

584

1,290

690

538

1,060

650

602

1,180

680

577

1,640

900

550

Soybean

Area

Production

Yield

5,450

5,380

987

5,990

6,460

1,079

6,310

7,140

1,100

6,220

7,080

1,138

6,420

5,280

822

6,340

5,960

940

5,870

4,560

777

Safflower

seed

Area

Production

710

450

639

620

120

199

530

240

614

440

260

594

420

200

476

400

210

546

350

160

450


Yield

Linseseed

Area

Production

Yield

830

310

373

790

240

299

800

260

344

590

240

408

580

200

351

540

220

390

460

170

376

Castorseed

Area

Production

Yield

740

900

1,218

640

830

1,292

690

840

1,221

780

770

979

1,080

880

818

720

650

911

590

430

732

Nigerseed

Area

Production

Yield

550

150

278

550

140

263

540

140

304

500

150

293

440

110

257

480

130

272

430

110

250

Total Nine

Area

Productio

n

Yield

26,340

24,380

926

26,120

21,320

816

26,710

24,740

944

24,280

20,110

853

22,770

18,440

810

22,640

20,660

913

24,140

14,990

708

Source : Directorate of economics and Statistics, Ministry of Agriculture.


4.2 World scenario

Table 1 :World production, yield and harvested area of Major Oilseeds

Oil seeds Production (Mn.T) Yield (MT/ha) Area (Mn. Ha)

04-05 (F)

03-04 (P)

02/03 01/02 00/01 04-05 (F)

03-04 (P)

02/03 01/02 00/01 04-05 (F)

03-04 (P)

02/03 01/02 00/01

Groundnut 23.70 23.41 21.58 24.08 23.05 1.06 1.05 0.99 1.05 1.01 22.45 22.19 21.86 22.98 22.89

Castorseed 1.21 1.08 0.96 1.04 1.35 0.97 0.93 0.85 0.87 0.90 1.25 1.16 1.12 1.20 1.50

Sesamessed 3.20 3.12 3.01 3.24 2.87 0.44 0.42 0.42 0.43 0.40 7.36 7.38 7.11 7.60 7.16

Rapeseed 40.95 38.76 32.86 38.68 37.51 1.52 1.51 1.45 1.54 1.52 26.88 25.69 22.60 23.87 24.61

Linseed 2.36 2.22 2.09 2.16 2.36 0.77 0.74 0.71 0.79 0.77 3.06 2.99 2.93 2.91 3.05

Sunflower 25.36 26.32 23.76 21.59 23.21 1.20 1.17 1.19 1.18 1.20 21.19 22.50 20.03 18.35 19.36

Soybean 214.50 186.44 196.45 184.53 175.26 2.35 2.10 1.39 2.31 2.30 91.34 88.80 82.32 79.72 76.07

Cottonseed 38.21 35.51 33.47 37.33 33.94 1.12 1.10 1.09 1.10 1.06 34.09 32.24 30.63 33.92 32.03

Palm Kernel 8.15 7.73 7.47 6.86 6.64 0.92 0.92 0.94 0.91 0.93 8.89 8.39 7.95 7.56 7.16

Copra 5.14 5.03 5.28 5.04 5.66 0.55 0.53 0.56 0.53 0.60 9.44 9.42 9.41 9.47 9.46

Total 362.78 329.62 326.94 322.52 311.86 1.61 1.49 1.59 1.55 1.53 225.94 220.77 205.96 207.58 203.29

Source : Oil World, F- Forecast, P-Provisional


4.3. Table 1 :World production, yield and harvested area of Major Oilseeds

Oil/ Fat 03/04 (F) 02/03 (P) 01/02 00/01 99/00 98/99 97/98 96/97 95/96

Soybean oil 31.28 31.02 29.44 27.08 25.32 24.58 23.19 21.00 20.37Cotton oil 4.13 3.95 4.30 3.94 3.87 3.88 4.07 4.03 4.13Groundnut Oil 4.90 4.45 5.32 4.984 4.46 4.78 4.38 4.51 4.43Sunflower Oil 9.48 8.61 7.45 8.69 9.55 9.30 8.64 9.15 8.95Rapeseed oil 13.96 12.31 13.45 14.01 14.55 12.71 12.22 11.48 11.67Sesame oil 0.78 0.18 0.83 0.72 0.69 0.69 0.74 0.68 0.63Corn Oil 2.05 2.03 1.99 1.95 1.95 1.99 1.93 1.87 1.81Palm Oil 2.91 2.65 2.78 2.73 2.41 2.54 2.56 2.77 1.60Palm Kernel oil 28.42 27.52 25.07 23.81 21.27 19.50 16.97 17.49 16.15Coconut Oil 3.38 3.28 2.99 2.91 2.65 2.45 2.18 2.18 2.06Butter as fat 3.20 3.21 3.25 3.51 3.08 2.37 3.45 3.15 2.91Lard 6.44 6.28 6.22 5.99 5.94 5.87 5.73 5.70 5.67Fish Oil 7.28 7.09 6.88 6.69 6.68 6.69 6.20 5.97 5.85Linseed oil 0.61 0.60 0.63 0.67 0.71 0.73 0.68 0.66 0.66Castor oil 0.45 0.42 0.45 0.52 0.48 0.44 0.46 0.46 0.48Tallow and grease 8.03 8.08 8.04 7.71 8.21 8.11 7.68 7.41 7.45

Total 128.28 123.24 120.04 117.08 113.40 107.73 101.91 99.83 96.18Source : Oil World, F- Forecast, P-Provisional


4.4. India Feed Update

(Qty. ‘000 tons)

Oil seed 2003-04(Oct – Sept)

2002-03(Oct –Sept).

2001-02(Oct-Sept)

Production :Soybeans Cotton seedGround nuts Sunflower SeeRapeseedSesame seedPalmkernels CopraLinseedCastor seed

7100.005660.004950.001160.006500.00800.0011.00

700.00230.00670.00

4300.004650.003300.001060.003700.00620.0010.00

690.00200.00550.00

5350.005370.004900.00726.00

4850.00730.00

8.00713.00240.00610.00

Total 27781.00 19080.00 23497.00Net import :Soybeans 0.20 0.20 0.10Rapeseed 10.00 14.3 11.50Copra 1.80 1.7 1.90Linseed 4.50 4.70 4.30

Total 16.50 20.80 17.90Crushings : Soybeans Cotton seedGround nuts Sunflower SeeRapeseedSesame seedPalmkernels CopraLinseedCastor seed

6310.004120.003400.001070.005010.00390.00

9.80697.50205.10637.50

3700.003360.002000.00970.00

3555.00380.00

8.70702.70191.90601.80

4620.003880.003420.00675.00

4465.00382.00

7.20702.30219.40658.00

Total 21849.90 15470.20 19028.90Supply (Consumption)Soybeans mealCotton mealGroundnut meal Sunflower meal

1715.503295.001739.40505.00

1668.702685.901137.50470.50

1344.003101.601828.80318.40


Rapeseed mealSesame mealCorngl. FeedPalmkern MealCopra MealLinseed mealFish meal

2344.50225.60

-9.40

284.10131.2050.20

1648.30219.80

5.8017.10

268.00122.8049.20

2278.90221.00

0.2011.90

257.90140.4038.00

Total 10300.00 8278.60 9528.90Imports :Soybean meal Cotton meal Corngl. MealPalmkern. MealCopra MealFish Meal

0.20--

5.0039.0041.00

0.400.105.80

13.1018.3038.60

0.30-

0.201.307.90

32.90Total 85.20 76.20 42.60

Production :Beef & VealPorkMutton/LambPoultry MeatOther meal

3000.00638.00714.00700.00108.00

2965.00625.00710.00670.00146.00

2925.00613.00705.00630.00146.00

Total 5200.00 5116.00 5019.00Population: (‘000)

1082300.00 1065460.00 1049580.00


4.5 China feed update

(Qty. ‘000 tons)

Oil seed 2003-04(Oct – Sept)

2002-03(Oct –Sept).

2001-02(Oct-Sept)

Production :Soybeans Cotton seedGround nuts Sunflower SeedRapeseedSesame seedLinseedCastor seed

162000.008669.009900.001800.00

11000.00650.00460.00258.00

16300.008758.00

10100.001900.00

10300.00800.00463.00265.00

15450.009470.00

10150.001750.00

11320.00805.00420.00260.00

Total 48937.00 48886.00 49625.00Net import :Soybeans GroundnutsRapeseedSesameseedCopraLinseedCastorseedSunflower seed

18800.002.00

675.20155.00

0.105.503.003.30

20417.400.60

51.303.900.108.503.101.70

10385.902.00

774.804.300.10

-0.103.90

Total 19644.10 20486.70 11171.00Crushings :Soybeans CottonseedGroundnutsSunflower seedRapeseedSesameseedLinseedCastorseed

277100.007890.005600.00815.00

10670.00460.00415.00250.00

25820.008020.005745.00885.00

9640.00470.00415.00260.00

20670.008590.006225.00873.00

11360.00533.00418.00264.00

Supply (consumption)Soybeans mealCotton mealGroundnut meal Sunflower mealRapeseed meal

21350.004985.003345.00475.00

6412.70

20106.305031.203354.60515.60

5736.30

16224.705331.603620.9496.40

6793.80


Sesame mealCorngerm meal Corngl. FeedPalmkern MealCopra MealLinseed mealFish meal

240.00150.00141.00

8.0016.20

277.001660.00

243.20145.00121.20

0.500.10

278.001717.90

277.30141.30128.7021.400.50

280.101814.70

Total 39060.00 37250.10 35131.40Imports: Soybean Meal Groundnut Meal Sunflower MealRapeseed meal Corngl. FeedPalmkern. MealCopra MealFish Meal Cotton Meal

32.7072.0012.1040.0020.008.00

16.20856.0010.40

0.40-

13.4014.3012.300.500.10

818.908.00

20.80---

17.0021.403.00

1122.501.60

Total 1067.40 867.90 1186.30Production : Beef & veal Pork Mutton / Lamb Poultry MeatOther meals

6040.0044800.003270.00

14300.00460.00

5830.0043350.003120.00

13770.00440.00

5600.0041845.002950.00

13287.00425.00

Total 68870.00 66510.00 64107.00Population : (‘000) 12815.20 12723.60 12628.90

Source: Oil world 2004


4.6 State wise solvent extraction units and processing capacity

(SEA Members)

State No. of

Solvent

Extraction

units

Processing capacity

Over all oilseeds / Oil

cake processing

capacity

Rice Bran processing

capacity with overall

oilseeds / oil cake

processing capacity

Andhra Pradesh 44 8850 2655000 6935 2080500

Assam 1 150 45000 110 33000

Gujrat 42 10235 3070500 1530 459000

Haryana 11 1175 352500 905 271500

Karnataka 31 4385 1300500 2110 535000

Kerala 7 855 256500 570 171000

Chattisgarh 13 1955 586500 1535 460500

Madhya Pradesh 31 16325 4897500 260 78000

Maharashtra 41 9100 2730000 1350 405000

Orissa 4 280 84000 300 9000

Punjab 18 2490 747000 2050 615000

Rajasthan 15 3910 1143000 500 150000

Tamil Nadu 16 2585 775500 1805 541500

Uttaranchal 7 975 292500 700 21000

Uttar Pradesh 21 3905 1171500 3147 944100

West Bengal 13 1570 471000 1255 376500

Pondicherry 1 400 120000 300 9000

Total in India 316 68995 20698500 25362 7608600Nepal 1 80 24000 60 18000

Grand Total 317 69075 20722500 25422 7626600Source : SEA book 2005


Oil Seeds / Oil cake and rice bran processing capacity of solvent

extraction units (SEA members) (1985 to 2004)

Year No. of

Solvent

Extraction

units

Processing capacity

Over all oilseeds / Oil cake

processing capacity

Rice Bran processing capacity

with overall oilseeds / oil cake

processing capacity

Daily

M.T

Annual (300

days) M.T

Daily

M.T

Annual (300 days)

M.T

1985 303 32,250 96,75,000 14,057 42,17,100

1986 314 35,245 105,73,500 15,979 47,93,700

1987 305 35,395 106,18,500 16,199 48,59,700

1988 322 39,025 117,07,500 17,015 51,04,500

1989 358 44,205 132,61,500 20,259 60,77,700

1990 395 51,852 155,55,600 24,630 73,89,000

1991 396 54,878 164,63,400 25,100 75,30,000

1992 494 71,808 215,42,400 31,325 93,97,500

1993 516 81,807 245,42,100 32,858 98,57,400

1994 550 89,632 268,89,600 35,145 105,43,500

1995 553 99,328 297,98,400 34,078 102,23,400

1996 510 101,225 303,67,500 34,287 93,08,100

1997 471 96,955 290,86,500 31,027 85,40,100

1998 468 96,085 288,25,550 26,487 79,34,100

1999 421 88,700, 266,64,000 26,447 78,23,100

2000 371 80,885 242,65,500 26,077 75,96,600

2001 349 78,450 235,35,000 25,322 69,71,100

2002 321 72,800 218,40,000 23,237 70,77,600

2003 307 69,885 209,65,500 23,592 76,08,600

2004 316 68,995 206,98,500 25,362

Source: SEA book 2005


4.7 Supply locations and prices of food grade hexane (November

2004) M/s. Hindustan Petroleum Corporation Ltd.,

Location / Customer

Basic Price Rs. / KL

Excise Duty 16% Education cess 2% on

CE Rs. = -16.32%

Total Rs. /KL

Mumbai 22700 3704.64 26404.64Shakurbasti (Delhi) 24400 3982.08 28382.08Manglia (Indore) 23600 3851.52 27451.52

Vijayawada 23300 3802.56 27102.56Tondiarpeth

(Depo) Madras23400 3818.88 27128.88

Amousi (Lucknow) 24800 4047.46 28847.36Jaipur 23800 3884.16 27684.16

Budge-Budge 25100 4096.32 29196.32Ghatkesar

(Hyderabad)22900 3737.28 26637.28

Nandesari (Baroda) 22800 3720.96 26520.96Ambala (Haryana) 24600 4014.72 28614.72

Irumpunam 24000 3916.80 27916.80Source: SEA book 2005

M/s. Bharat Petroleum Corporation Ltd.,

Location / Customer

Basic Price Rs. / KL

Excise Duty 16% Education cess 2% on

CE Rs. = -16.32%

Total Rs. /KL

Ex-Mumbai 22700 3704.64 26404.64Ex-Calcutta 25100 4096.32 29196.32

Ex-Brijwasan (Delhi)

24400 3982.08 28382.08

Ex-Manglia (Indore)

23600 3851.52 27451.52

Ex-Chelapally (AP)

23700 3867.84 27567.84

Ex-Tondiarpeth (Chennai)

23400 3818.88 37218.88



M/s. Indian Oil Corporation Ltd.,

Location /

Customer

Basic Price

Rs. / KL

Excise Duty 16%

Education cess 2% on

CE Rs. = -16.32%

Total

Rs. /KL

Indore 23600 3851.52 27451.52

Guntkal 22760 3714.43 26474.43

Chennai 23200 3786.24 26986.24

Ex-Koyali for

Gujrat Market

21450 3500.64 24950.64

Ex-Koyali for

Maharashtra

Market

22380 3652.41 26032.41



MARKETING MIX STRATEGY

Marketing mix refers to the amounts and kinds of marketing

variable, the firm is using at a particular time under marketing mix we

include product mix, distribution mix, communication mix and price mix.

The credit of introducing this concept of Marketing mix goes to

Professor N.H. Borden” of Harvard Business School of America.

According to N.H. Borden:

“Marketing mix refers to two things {a} a list of important elements or

ingredients that makeup the marketing programme, and {b} the list of

forces having bearing on the marketing operations”.

According to Prof. Philip Kotler:

“The firm’s task is to find the best solution for its marketing decision

variable; the settings constitute its marketing mix”.

According to Mr. Jerome Mc Cathy, an American Expert:

“Marketing to the pack of four sets of variables namely, product

variable, price variables, promotion variables and place variables”.

In other words, Marketing mix is the blend or the compound of all

the marketing efforts around the found ingredients namely product, price,

promotion and place. These ingredients are interrelated and all revolve

round potential consumer satisfaction as the local point.

Nature of marketing Mix Strategy:

Marketing mix is a dynamic process. If changes with chance in

needs of consumer.

Marketing mix is a difficult task as it involves the bleeding id

decision in four different area of marketing i.e., the product, price,

promotion and place. In fact, effectiveness of marketing efforts depends

upon the decision made in cash of these found areas of their proper

combinations.


Objective of Marketing Mix Strategy:

The basic objective of marketing mix is to satisfy the needs of the

customer in the most economical manner. The emphasis of marketing

mix is to satisfy the needs of the customer effectively.

The elements of marketing mix strategy:

Precisely, marketing mix is the master mix of sub-mixes namely,

product mix, price mix, promotion mix and place mix as a set of good

many variables. These elements of marketing decisions are over which

the firm has content.

Elements Of Marketing Mix Strategy:-

Product Mix Strategy

Price Mix strategy

Promotion Mix Strategy

Physical distributed

Meaning & Objectives of Marketing Mix Strategy

1) Product 2) Pricing 3) Promotion 4) Positioning

5.1. Product strategy:

The product is the most tangible and important single component

of marketing programme. The product policy and strategy is the corner

stone of a marketing mix, without product, there is nothing to distribute,

nothing to promote, nothing to price. If the product fails to satisfies

consumer demand. No additional cost on any of the ingredients of the

marketing mix will improve the product performance in the market place.

A product strategy is a firm’s plan for marketing its products greater


emphasis is laid on the product objectives for this reason, the firm

develops a product design to achieve the ret objectives.

The company is producing only a single type of edible oil that is

Rice bran oil our oil is different from other regular edible oil, our oil is

been called as HEAT oil in Japan as it contains original which increases

HOL (good) cholesterol and lowers LDL (bad) cholesterol &

triglycerides. Over oil contains sequence which improves skin tone, &

delay wrinkle formation over oil contain vitamin E, which helps in

maintaining balance of nervous system. Over oil observes 15% less oil

which can be lower in calorie in take.

Cooking advantages of Akshath oils:

High nutritional content

Longer Shift life

Oil is less sticky, saves soap

Gives better taste & flavor to food items.

Akshath oil is in market low in 3 different type of packing & in

different quality

Packing:

The oil come in 3 different type of packing that is in pouches and

2nd in the Tin and 3rd it comes in bad debts.

Quantity:

Our oil comes in 1 /2 liters, 1 liter 5 liters that is in pouch, and 15

kg Tin and 180 kgs in barrels. The pricing will be changing according to

market demand and competition.


5.2 Pricing Strategy:

Pricing is an art of translating into quantities terms (Rupees and

paisa) the value of the product or a unit of service to customers at pain of

time. Price is a major marketing tool and helps in directing the products

to a specific consumer regent; price is a powerful instrument in which

both the buyer and seller are keenly interested. It is the price of a product

or a service that ensures a decent return of investment, guaranteed table,

economic structure creator, maintains and extends market. Pricing task

involve establishing pricing objectives. Identifying the factors governing

the product value in monetary terms, formation of pricing policies and the

strategies, implementing them and controlling them for the best result.

Pricing plays a very vital role during sales of a product. As we can

find a large number of products in the market with the some contents, so

by this consumer’s will be having choice to buy, so while fixing the price

the company will look at the prices of the other competators in the market

& we will fix the price by keeping the Low class consumer’s also.

As Rice bran oil is now started growing in the market, the company

had decided to offer the product is reasonable price, which would help the

company product to reach more people, by the price that the product will

be kept. So now we are offering 1 liters /kg packet in the rate of 62 as the

introducing price.

5.3 Promotion Strategy:

Promotion strategy deals with efforts undertaken to increase and

improve demand and sales of the products of the firm.

Promotion also plays a very vital role the success of a product.

The way a product is promoted clearly has a major impact on the way it


succeeds. Bad promotion can laid a good product to fail in the market.

Hence the promotion strategy adopted by a company should be carefully

planed & should be meticulous by nature. Today’s Markets, regardless of

your product, are full of competitors, promoting a product into this

environment requires more than just a fortastic Product, but specialized

product launch knowledge & a Proper Process.

The goal of a product is to establish a product as the leader in the

field, the first in a class, a risk-free alternative. But to accomplish this

goal two thing need to happen, first, an alternative. But to accomplish

this goal two things need to happen; first an untarnished perception &

image for the product & company must be created; & second, a

comprehensive promotion plan, that ensures that every high leverage /

cost –justiable action is planned for and professionally executed must be

implemented “In the most successful ventures planning for the product

promotion starts along with preliminary design & development,” Gooze

says “ Positioning, Sales channels & distribution, adverting & public

relations all need to be addressed & should be given as much time &

energy as the development & design stage. Synchronizing marketing

activities with product development is critical for success.”

Among the key components included is a Strong Product promotion

plan”.

a) Clearly defined sales objectives

b) Building a large consumer base

c) Good packaging & branding

d) Assured sales channel realness

e) Promotional functions in place

f) Resources to track, Monitor & account for execution

g) Good advertising & vast coverage


h) Catchy Punch line

i) Maintaining quality & proper quantity

“Products often fail because companies don’t manufacture

adequate quantities of the new product and make them available to

prospective customers”. Webb Says, He suggest creating a management

team with responsibility for, among other things, ensuring that all level of

the company are prepared to handle demand for the product and to train

staff in its use for customer support.

Publicity is the most cost effective way to launch your company’s

latest product regardless of whether you plan to Market your product on a

local, national or international scale, with publicity, you can introduce a

product to thousands, even millions of people literally overnight and gain

valuable product marketing research in the process.

IMA defines publicity as mass communication with potential

customers through the media publicity is the process by which your

company’s new product marketing “Sales Pitch” is transformed into a

editorial format or news.

Editorial Coverage of new product marketing launches can take

many forms, but the most profitable type usually occurs in print media

such as newspaper & magazines.

Beat your competition to the market with a professionally launched

product.

a) Present your product & company with the very best image

possible.

b) Ensure the alignment of your marketing, sales customer service, &

interest, marketing activities for maximum impact.

c) Eliminate the perception of risk by the market or your potential

customer base.


d) Enhance your product knowledge base.

e) Ensure that no delays occur that could adversely affect your

product in the market.

f) Ensure that no critical action fall through the cracks & come back

to haunt you late.

g) Keep your product on track so you can beat the competition in the

market.

h) Eliminate the risk & expense of a re-launch

i) Structure a product launch that will achieve your market & early

sales goals.

For your initial product launch, your best reception will be found in

the relationship buyers. These are business customers who like your

products & services. They have built a relationship with your employers.

They think of your company as their primary superior of your category.

They do not want to be bothered to have to shop around every time they

make a new purchase. They look for quality, good service, helpfulness.

Friendship and information, if you can supply these things, they will stick

with you when your competition is on sale. If you have a new product,

they will be the first to want to hear about it. It is to these good people

that we look for our product launch.

What does a customer want?

Sometimes companies mistakenly conduct interviews with

intension of gathering new customers for existing products.

“If the goal is product development, you shouldn’t be sending

researches into the field to debit price or performance”. Gooze says “This

should instead be a time for rigorous listening Ask open-ended questions

that are designed to reveal genuine needs & feelings among your

customers. And then listen to the answers”.


Ideally, a cross junctional a product development team including

representatives from manufacturing, engineering operations, marketing

etc- should conduct these interviews this way, critical functional areas

arrive at a keener understanding of what the end-user needs & the

environment in which they would use the intended product.

Of course, not all companies can afford to do this so whether you

hire an outside marketing firm or use limited resources to conduct one-

one customer interviews, these are the types of questions you need

answered.

a) Who are our customers?

b) What is their problem or seed?

c) How will the proposed new product answer that need or solve that

problem?

d) Does the new product offer advantages over what the competition

has?

e) What factors will go into the customer’s decision to purchase the

new product?

Execution:

How will the product reach customer? Are you established sales

channels. Up to the new challenge?

“ When promoting a product, you need to step back & assess its fit

with existing channels” Gooze says, for example, if the product is a

features reduced version of an existing product that is being targeted to a

mass market, there are some questions you should ask.

a) Do you existing distributors serve mass marketing retail outlest.

b) Does our current pricing schedule take factors like mass market

competition into consideration?


c) If we lower our price, how much can we offer to spend on the sale

of each unit at this lower price?

d) Can we reach this market with our current sales force?

“Determining your pricing strategy & reviewing your sales

channels should be happening while the product is being positioned, as

there factors will have a definite impact on the positioning message

“Gooze Says.

In situations where one company partners with another to introduce

a new product, web advises strict due diligence before the execution

phase- thus ensuring that each partner is fully committed to the process &

has the necessary financial resources & familiarity with the market place.

“Whatever the circumstances have clear cut performance

objectives in place & be ready to measure than carefully” he add’s “Use

launch team to track progress & make it responsible for communicating

results to senior management.”

5.4 Positioning:

“Positioning is not about features & specifications it is the care

message that differentiates your product from everything else in the

market place. A unique product identifies strong tunes the market’s

perception of your product and in turn reinforces your company’s overall

positioning”.

To make sure everyone is working toward the same goal, certain

milestones should be established.

a) Have we identified all necessary launch channels?

b) What number of new product do we plan to sell by a specific date?

c) When will the product be ready to launch at rational trade

convection?

d) Are sufficient Stocking orders placed with key distributors?


e) How can we grow the product into a 5-10 percent market

entrenchment by a specified date?

“Break down every conceivable launch component “Identify

customer data basis where appropriate send now product sample to

industry & trade publication reviewers, do everything necessary to create

a strong, functioning life support system for that product”.

Planning for these activities should be as simple as possible, he

adds “We not talking about writing a so page launch overview document.

These tasks should facilitate the most favorable development of the new

product- that’s all.

Approaching the customer with the new product can be the most

delicate situation of all, which is why “having your ducks in a row”, is so

important. If existing customers encounter design flaws in the new

product, they may forgive and forget, but its unlikely new customers will

feel the same way. Also, the new product may not be the right “fit” with

all of your current customers. Prepared reduces the risk that the

company’s credibility may be managed by missteps at the launch time.

“In order to establish the new product’s identity in the market

place, the core message must be repeated over and over again” this

requires consists positioning within all of the company’s marketing

communications, including.

a) New & Current product literature

b) Press releases

c) Product specifications

d) Sales presentations

Slogan or punch line is the one of the most important aspects of

promotion. What is your slogan? Is the slogan consistent with your

positioning strategy? This question needs to be asked by the management


to see top it that their product is promoted properly. Did you provide any

sketches of your creative ideas? Example: newspaper advertisement, T.V

advertisement, coupon, radio script.

To operate successfully in global economic scenario, along with

steady it is very important that the company also develops a brand image

for its product & positive corporate identify among its buyer & suppliers.

Corporate brand & image building activities are one of the most

important activities for the strategic business planning using of a

company.


ANALYSIS AND INTERPRETATION OF SURVEY DATA

With the object of knowing consumer attitude towards refined rice bran

oil and to know the market share of various brands and also about the Akshath

Rice brand refined oil two types of filed survey was conducted on various

aspects.

1) General Refined oil Survey

2) Akshath Rice bran oil.

1) General Refined oil Survey

GENDER

Table 1: The gender of the sample consumers is presented

Gender Number Percentage

Male 07 28

Female 18 72

Total 25 100

Source: Survey data

Table: 1 Reveals that among the 25 respondents who are interviewed 07

(28%) are male and the reaming 18 (32%) are female.

Male Female 0

2

4

6

8

10

12

14

16

18

20

Series1

Source : Table 1


AGE

Table 2: The age groups of the consumers interviewed is presented

Age group in years Number Percentage

20-30 6 24

30-40 5 20

40-50 9 36

50 & above 5 20

Total 25 100

Source: Survey data

About 24% of the respondents are in the age of 20-30, 20% in the age

group of 30-40, 36% are in the age group of 40-50& 20% in the age group of

50 and above.

20-30 30-40 40-50 50 & above0

1

2

3

4

5

6

7

8

9

Number

Number

Source : Table 2


MARITAL STATUS

Table 3: The marital status of the consumers interviewed is presented

Marital status Number Percentage

Married 20 80

Unmarried 05 20

Total 25 100

Source: Survey data

The above Table 3, shows the No. of Married and unmarried consumers

among the 25 interviewed 20 members are married (80%) & 05 members are

unmarried (20%).

By seeing the above 3 tables it can be interpreted that a large No. of

respondents are of middle aged, married female members. As refined oil is a

product involved in cooking. As cooking is more done by the females? This

trend can be seen.

Married

Unmarried

0 5 10 15 20 25

Number

Number

Source : Table 3


INCOME

Table 4: Showing the incomes of respondents

INCOME (in Rs.) Number Percentage

5000-10000 10 40

10000-20000 09 36

20000&above 06 24

Total 25 100

Source: Survey data

About 40% of the respondents are having the income around rs.5000-

10000, 36% are having the income around the rs.10000-20000, and 24% are

having the income around 20000 & above.

TYPES OF REFINED OIL

Table 5: Showing type of refined oil used

Type of refined oil Number Percentage

Sun flower oil 12 48

Soybean oil 3 12

Rice Bran oil 8 32

Ground nut oil 2 8

Total 25 100

Source: Survey data

The above table reveals that the large No. of consumers use sun flower

based refined oil. As lot of different types of oils are available in market. Rice

bran is holding at the second place in the above table according to survey.


BRANDS OF OIL

Table 6: Showing brand preferred

Brand Number Percentage

Saffola gold 8 32

Nutrlite 1 4

Ruchi Gold 10 40

Akshath 4 16

Others 2 8

Total 25 100

Source: Survey data

By there above table we can come to know that sunflower based refined

oils are most commonly used type. And as a lots of brand products are

available. Not one single brand has a significant market share. The Ruche Gold

holds the 1st place in the table and the Sunflower holds to 2nd these two are

sunflower based refined oil. Akshath holds to 3rd by the above table.

Number

Saffola gold Nutrlite Ruchi GoldAkshath Others

Source : Table 6


MOTIVATING FACTORS

Table 7 : Showing factors motivating consumers

Factors Number (25) Percentage

Health 14 56

Price 13 52

Quality 05 20

Advertising 08 32

Dealers influence 07 28

Quantity 02 8

Brand 01 4

Source : Survey data

The table no.6 shows us that the people first give preference to there and

there family’s health & they look at price before purchasing & the

advertisements & dealers influence also motivate the consumers to buy the

product.

About 56% of health factor motivated the consumers & about 52% of

price factor motivated the consumers and advertising 32%, Dealers influence

28%, quality 20% motivated the consumers & about 12% factor covers quality

and brand

02468

101214

Number (25)

Number (25)

Source : Table 7


QUANTITY

Table 8 : Showing Quantity Needed by the consumers

Liters Number Percentage

Half Liters 14 56

One Liters 5 20

Five Liters 13 52

10 Liters 8 32

Total 25 100


Most of the people during the survey about 56% of people prefer half liters,

20% people prefer 1 liters, 52% prefer 5 liters & 32% prefer 10 liters.

OPINION

Table 9 : Showing opinions of the consumers towards 5 point Likrd scale.

Opinion Number Percentage

Excellent 4 16%

Good 11 44%

Satisfied 9 36%

Not Satisfied 1 4%

Bad 0 0%

Total 25 100


This 5 point Likrd scale table shows us the opinions of the customer and

most of the consumers opinion about there refined oil is good 11(44%) and

satisfactory 9(36%).


2) Akshath Refined oil Survey

GENDER

Table 1: The gender of the sample consumers is presented

Gender Number Percentage

Male 07 28

Female 18 72

Total 25 100

Source: Survey data

Table: 1 Reveals that among the 25 respondents who are interviewed 07

(28%) are male, reaming 18 (32%) are female.

Number

Male Female

Source : Table 1


AGE

Table 2: The age groups of the consumers interviewed is presented

Age group in years Number Percentage

20-30 05 20

30-40 07 28

40-50 05 20

50 & above 08 32

Total 25 100

Source: Survey data

About 20% of the respondents are in the age of 20-30, 28% in the age

group of 30-40, 20% are in the age group of 40-50 & 32% in the age group of

50 and above.

20-30 30-40 40-50 50 & above0

1

2

3

4

5

6

7

8

Number

Number

Source : Table 2


MARITAL STATUS

Table 3: The marital status of the consumers interviewed is presented

Marital status Number Percentage

Married 17 68

Unmarried 08 32

Total 25 100

Source: Survey data

The above Table 3, shows the No. of Married and unmarried consumers

among the 25 interviewed 20 members are married (80%) & 05 members are

unmarried (20%).

By seeing the above 3 tables it can be interpreted that a large No. of

respondents are of middle aged, married female members. As refined oil is a

product involved in cooking. As cooking is more done by the females? This

trend can be seen.

Number

Married Unmarried

Source : Table 3


INCOME

Table 4: Showing the incomes of respondents

INCOME (in Rs.) Number Percentage

5000-10000 10 40

10000-20000 07 28

20000&above 08 32

Total 25 100

Source: Survey data

About 40% of the respondents are having the income around rs.5000-

10000, 28% are having the income around the rs.10000-20000, and 32% are

having the income around 20000 & above.

MOTIVATING FACTORS

Table 5: Showing factors motivating consumers

Factors Number (25) Percentage

Health 13 51

Price 08 32

Quality 06 24

Advertising 18 72

Dealers influence 2 8

Quantity 3 12

Brand 0 0

Source: Survey data

The table no.5 shows us that the people first give preference to there and

there family’s health & they look at price before purchasing & the

advertisements & dealers influence also motivate the consumers to buy the

product.

About 26% of health factor motivated the consumers & about 16% of

price factor motivated the consumers and advertising 36%, Dealers influence


4%,quality 12% motivated the consumers & about 6% factor covers quality and

brand 0%.

Health Price Quality Advertising Dealers influence Quantity Brand02468

1012141618

Number (25)

Number (25)

Source : Table 5

QUANTITY

Table 6: Showing Quantity needed by the consumers

Liters Number percentage

Half Liters 14 56

One Liters 5 20

Five Liters 13 52

10 Liters 8 32

Total 25 100

Source: Survey data

Most of the people during the survey about, 56% of people prefer half

liters, 20% people prefer 1 liter, 52% prefer 5 liters & 32% prefer 10 liters.


OPINION

Table 7 : Showing opinions of the consumers towards 5 point Likerd scale.

Opinion Number Percentage

Excellent 1 4%

Good 10 40%

Satisfied 13 52%

Not Satisfied 1 4%

Bad 0 0%

Total 25 100

Source: Survey data

This 5 point Likerd scale table shows us the opinions of the customer

and most of the consumers opinion about there refined oil is good 10(40%) and

satisfied 13(52%).

Number

Excellent Good Satisfied Not SatisfiedBad

Source : Table 7


SUGGESTIONS AND CONCLUSION

On the basis of survey findings some suggestions provided to the

company are:

Advertising:

In the present world of technology, advertising plays the major role

in marketing of a product. Advertising is a social and business process

responsible for the mass communication of the information. !f the product

is the lack. Advertising is the key to open the product to the market. It is

only one mediator between producer and ultimate consumer, which

makes the consumer to see, to think and to feel about the product and it

also, tempts the consumer to buy the product. Advertisement can

popularize and establish an image on the product and build up reputation

and good will for the producer. This show that in present world

advertising can create wonders in the market advertising may be by

means of television or by using board cast media or by using magazines

as the media.

By survey it has been seen that most of the consumers prefer

television advertising as they spend most of their free times in watching

television.

So the company gives more advertisement in Television and also

through magazines, newspapers, internet etc., to attract the new

customers from the corner and corner of the country.


Sales promotion:

Sales promotion has been the fastest growing segment a promotion

mix and has become a major factor in success of marketing in recent

years, "sales-promotion are the achievements of short-terms marketing

objectives by schematic means". Sales-promotion is a direct and

immediate inducement that adds an extra value to the product. So it

prompts the sale force, dealers and consumers to buy the product sales.

Promotion carried along with advertising and publicity creates

effectiveness in the selling activity the company has not undertaken the

sales promotion at the expected level. The company should give

importance to the following sales promotion.

i. Free offers should be given such as if your buy one nail enamel you

will get another free

ii. By providing special discount during festival times

iii. By providing special price off on buying multi packs

iv. Providing special bonus offers, free gifts, free coupons to wholesale

dealers and retailers because they are the people who actually sell the

product and they must be mentioned to sell more specially.

v. Sales contest to the sales force to double or multiples their selling

interest and efforts. By this the hidden competitive spirit is boosted

and the overall performance of the sales-force is improved.

Attractive packing:

Packing plays the most vital role in marketing the cosmetics

successfully packaging is an activity which is concerned with the

protection, economy, and convenience with the promotional

considerations. An attractive package maintains the brand image and

creates an interest in minds of the customers and an impulse to by. So the


packaging should be done in such a way that the contents can be stored

for long time and convenient for transportation.

The company must also consider change of package to

1. Attract new customers and expand the market

2. Create stimuli for demand

3. Cope with new innovation in the field of packaging

Innovation:

Product innovations have become an important part of the

companies marketing strategy today. Both establishing and established

firms are inventing new products of brining about changes in their

original products to increase and maintain the consumers. Now a day’s

people expect something new. They purchase such products, which have

something special in them. Therefore innovations are must.

Distribution:

vi. The distribution network of the company is good, but rather than this

the company should make quickly flew of products the distributors. If

in case of delay in supply, people will start moving to next best

alternative.

vii. The company should take steps to supply its products to distributors

with 3 to 4 days.

viii. The company should appoint effective sales person in rural and

district area to boost the sales.

ix. Periodical survey of the market is necessary by the company to know

changing attitudes regarding to products.


Suggestions of the users:

1) They have to give lot of advertising in different kinds of media, sales

promotion which is helpful in boosting the sales.

2) They must inform the customers and retailers about new product by

visiting door to door & by distribution of free samples.

3) They must survey about there products to know other refined oil.

4) The colour should be changed in order to attract the consumers.

5) They must concentrate more on the packing of 5 & 10 liters can.

Suggestion’s of dealers:

1) They must note down any complaints about the product or any defect

and lodges with the company’s sales man.

2) They must supply the product, whenever there is demand because it may

lead to diversion of mind to other product.

3) They must also study the strategy of other products i.e. its competitors.

4) They must be very alert to changing situation.

5) They must provide special gift offers for selling a targeted amount of

boxes.

Own suggestions:

1) They must give add’s in different media but not to stick on to the single

type.

2) Cooking competitions should be arranged in the cities to attract the

customers.

3) Price should be less than the other products.

4) By the survey most of the consumers suggested to change the colour.


Conclusion:

We have discussed “Marketing of Akshath Refined Rice Bran Oil” with

special reference to Sri. Anjaneya Agro Tech (P) Ltd., throughout the course,

my main concern was to analyses the current market situation and give

suggestion to the firm for better promotion strategy.

The result of the survey proves that Indians although being price

conscious people now are concentrating on the health and quality factor as

well. To have a dominant product in the market, sales promotion is very

crucial.

The survey conducted in Davangere that is one of the fastest growing

cities, well known for educational institution and famous in business field has

proved a very good market for refined oil.

In the present competitive market the consumers are described as the

king. Thus it is very essential that the trading co., should manufacture products

and services that satisfy consumer needs. Consumer orientation is importance

for creating the brand image in the minds of the consumer thus it is very

important for creating brand image in the minds of the consumer.


CONSUMER QUESTIONNAIRE

Dear sir/madam

I am very happy to introduce myself as “MADESH.M.B” studying

In final year B.B.M as a part of our academic study. I am required to work

under a project on any of the management aspects. I have chosen

“MARKETING OF AKSHATH REFINED RICE BRAN OIL“ case study of

Sri Anjaneya agro tech p.v.t ltd.

I request you to spend few minutes to go through these few questions &

answer them. The information provided by you will be kept confidentially &

the information is purely for academic purpose only.

THANKING YOU Your faithfully,

Madesh.

M.B

1) Name:

2) Address:

3) Sex: a) Male b) Female

4) Age: a) 20-30 b) 30-40

c) 40-50 d) Above50

5) Marital status: a) Married b) Unmarried

6) Monthly/Annual

a) 5000-10000 b) 10000-20000

c) 20000-30000 d) 30000 and above


7) Which brand of refined oil do you use?

a) Saffola gold b) Nutrlite

c) Ruchi gold d) Akshath

If other please specify :

8) What factors motivated you to use Akshath refined oil?

a)Health b) Price

c) Quality d) Quantity

e) Advertising f) Brand

g) Dealers influence h) Others

9) Are you satisfied with regard to the purity of Akshath oil?

a) Yes b) No

10) IN what quantity do you need Akshath oil?

a) ½Liter Pouch b) 1 liter pouch

c) 5 liter can d) 10 liter can

11)What is your opinion about the existing pack? Do you want any kind of

changes?

12) Do you get the oil at the right time?

a)Yes b) No

13)Do you get the oil in majority of shops?


a) Yes b) No


14)Opinion about colour and smell ?

15)Have you come across any adulteration in Akshath oil?

a)Yes b) No

IF yes state the type of adulteration:

16)Please offer some suggestions to improve the oil, to reach your

expectation’s

Date:

Place: Signature of the respondent


GENERAL CONSUMER QUESTIONNAIRE

Dear sir/madam

I am very happy to introduce myself as “MADESH.M.B” studying in

final year B.B.M as a part of our academic study. I am required to work under a

project on any of the management aspects. I have chosen “MARKETING OF

AKSHATH REFINED RICE BRAN OIL” case study of Sri Anjaneya agro

tech Pvt. ltd.

I request you to spend few minutes to go through these few questions &

answer them. The information provided by you will be kept confidentially &

the information is purely for academic purpose only.

THANKING YOU Your faithfully

MADESH.M.B

1) NAME :

2) ADDRESS :

3) Sex: a) Male b) Female

4) Age: a) 20-30 b) 30-40

c) 40-50 d) above50

5) Marital status: a) Married b) Unmarried

6) Monthly/Annual Income:

a) 5000-10000 b)10000-20000 c) 20000 above


7) If yes which type of refined oil do you use?

a) Sunflower b) Soyabean oil

c) Rice Bran Oil d) Ground Nut

8) Which brand of refined oil do you use?

a) Saffola gold b) Nutrlite

c) Ruchi gold d) Akshath

If other please specify:

9) What factor motivated you to use the particular brand refined oil?

a) Health b) Price

c) Quality d) Quantity

e) Advertising f) brand

g) Dealers influence

10) Are you satisfied with regard to the purity of your brand oil?

a) Yes b) No

11) In what quantity do you need your refined oil, in pouch or cans?

a) ½liter pouch b) 1 liter pouch

c) 5 liter can d) 10 liter can

12) What is your opinion about the existing pack? Do you want any kind of

changes?


13) Do you get oil at the right time & at majority of shops

a. Yes b) No

14) Have you ever tried Akshath refined rice bran oil?

a. Yes b) No

If yes state how was it, if no give reason:

15) How you felt about the quality of the edible oil that you are using? Give

your opinion to the 5 point likart scale.

a) Excellent b) good c) satisfied

d) Not satisfied e) bad

16) Do you recommend Akshath rice brain oil to the potential buyer?

a) Yes b) No

17) Which price do you think will be more suitable for 1 liter?

a) 50-55 b) 55-60

c) 60-65 d) 65-70

18) Do you need any improvements in your edible oil?

19) Dose the colour of oil matters you while purchasing?

a) Yes b)No


20) Who imposed you to buy the existing oil that you are using?

a) Friend b) Dealer c) Advertisements

21) Which type of media advertisements attracts you to buy oil?

a) T.V b) News paper c) Flex boards

d) Wall paints e) Other

22) When would you like to try a new oil when there is an?

a) Attractive offer b) Attractive price

23) Please give us few suggestion’s with regard to refined oil?

Date:

Place: Signature of the respondent


Bibliography

Text book Philip Kotler

SEA book

World oil magazine

Google.com

Ask.com

Oilseed.com

Akshath.com


rice bran oil project

Documents