EXECUTIVE SUMMARY

Indian Food industry has high growth potential and food is related to necessary of any country’s
citizen. Food is something which is substantially differentiates from India from the western
countries and India is poised to become a health conscious country In which the ingredients of
the key thing which people would look at before enjoying the utility of food. The food oil
industry is thereby set to produce health conscious oils which will eliminate the use of non-
healthy oils. The Indian food and grocery market is the world’s sixth largest, with retail
contribution 70 per cent of the sales. It is projected to grow at the rate of 104 per cent, touching
US$ 482 billion by 2020.

The summer internship that was conducted belonged to a part of food industry. I.e., Fortune
brand of the Adani Wilmar group in Kolkata area. The project topic is “Customer Segmentation
Analysis & Customer Experience”. For this purpose, I developed a questionnaire which recorded
answers of consumers willing to buy edible oils. I had collected data of over 60 customers in
various regions of Kolkata area. Also I paid visit to retailers and wholesalers in business of
trading mustard oil to collect their insights about mustard oil market and consumer needs and
expectations. Also I’ve done category wise analysis of Adani Wilmar’s product with other
companies to find out the challenges and opportunities for the company to fine tune its marketing
and business strategy.
For the purpose of conducting survey, I visited several areas of Kolkata like Salt Lake, Park
Street, New Town, Dumdum, Behala, Garia, Jadavpur, Tollygunge and various other places.

Through this process of visiting places, conducting survey and analyzing the data collected the
findings were:-
• High market share of Fortune KGMO
• Fortune Mustard oil is facing stiff challenge with Emami Mustard oil and company needs to
improvise on its taste and price to compete with Emami.
• Strong brand equity of Adani Wilmar between customers can be leveraged to increase sales of
other Adani Wilmar products also.
• Though distribution capabilities of Adani Wilmar are very strong but there is need to improvise
on certain glitches in operations.

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 Chapter 1
INTRODUCTION

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1.1 Problem Statement

What is the consumer buying behaviour before purchasing edible oil?

How to increase Sales of other Fortune products like Kacchi Ghani?

How is the Adani Wilmar Edible oil perceived in the market?

1.2 Rationale of the Problem

For any business wealth creation of its shareholders is utmost important which is only possible
when expected rat of returns will be over and above expectations of the investors. One of the
major factors influencing company’s rate of return is its sales turnover over the period. Sales
turnover also depends on marketing of the product up to a great extent. In case of manufacturing
products the different stakeholders are involves in the selling process, manufacturing company
supply the product to the distributor and then to the wholesaler which in turn passes through the
retailers and retailers finally passes to the final consumers. So to increase sales number of a
company an efficient supply chain and well established distribution network play very important
role. After that retailers also play important role in pushing and promoting your product to the
end customer as many of the times customer isn’t aware about product so retailers can actually
play role of shopping guide to them. The objective of this study is to understand market scenario
of edible oil products and consumer behavior while making a purchase decision. The product
which has been chosen for study is edible oil, rice and besan.

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 1.4 Methodology

Methodology is the process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys and
other research techniques, and could include both present and historical information.

The steps which complete the process are mentioned below:

 Problem Identification
 Development of Approach to problem
 Research design Formulation
 Fieldwork and Data Collection
 Data Preparation and Analysis
 Report preparation and Presentation

Research Design: Observation and Survey method

 Sampling Design:
 Sample Technique: Convenience
 Sample Size: sampling: 60
 Sample Area: Customers Lucknow
Region

Data Collection Method:

 Primary Data
 Data Collection tools Survey, Observations
Unstructured Questionnaire, Observations

Analytical Tool: Ms-Excel Data Analysis

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1.5 Scope of the Study

The data collected in this report gives a broader overview of consumer buying behaviour. Its
approach on buying edible oil. Sample taken in this report is a good representation of general
customers. This report will help in understanding changing customer needs and demands. This
report also covers all the factors hindering the sales of other product lines like Mustard oil and
provides insights on challenges faced by them in market, and recommendations to cope them.

The main purpose of this study was to Understand Consumer behaviour

To study awareness of this Adani Wilmar’s products in the market and their brand image

To understand the problem point in mustard oil sales of Adani Wilmar

1.6 Limitations of the Study

Following are the some limitations of the study;

 Due to shortage of time, study was confined to specified areas of Lucknow.

 Some respondents were hesitant to disclose some information or have given incomplete
information.
 Survey was done for limited products only.
 There might have been some biased responses, and because of which findings may not
be 100 per cent accurate.

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 Chapter 2
DETAILS OF THE ORGANIZATION

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multinational corporations - the US$ 8.7 Billion Adani Group, and Wilmar International Ltd.,
Singapore, Asia's leading Agra business group with revenues exceeding US$ 45.46 Billion.

The brand “fortune” came into being in the year 2000, thus marking AWL’S foray into the
branded packaged edible oil business. Fortune is the flagship brand of Adani Wilma. It became
the no. 1 brand in the market within just 2 years of its launch. Reader’s digest has hourned
Fortune as the most trusted brand for 4 years and it was adjusted a super brand for 2 years in a
row. Fortune has grown from strength to strength and continues to deliver the ‘joy of eating’ to
India households. Fortune not only has the largest range of cooking oil in India, but also
continues to innovate and lead the cooking oil industry and lead the cooking oil industry with
new introductions. And, within merely 20 months of its launch, fortune rose to become India’s
largest selling edible oil brand, bearing that torch right up to this day. With the rapidly changing
market scenario and economy, AWL continues to grow and transform into a significant player in
the industry, evolving with the times. It is now one of India’s leading edible oil companies, and
the future for all of its brands looks very bright indeed. Today, AWL owns refineries in 17
strategic locations across India, has 8 crushing units and 19 packing units. Cumulatively, this
translates to a refining capacity of over 10300 tonnes per day, seed crushing capacity of 7485
tonnes per day and packaging capacity of 8500 tonnes per day.

AWL has the largest distribution network among all branded edible oil players in India, with
more than 93 stock points, 5000 distributors and *10% Retail Penetration which spans across
approx. 1 Million outlets all over India.

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2.2.1 Products / Services and Processes/ Facilities

Major products of Adani Wilmar are as follows:

Line 1 Products under the brand name of Fortune are as follows:

 Fortune Rice Bran Health

 Fortune Soya health
 Fortune Sunlite
 Fortune groundnut oil
 Fortune cottonseed oil
 Fortune Kacchi Ghani
 Fortune soya chunks
 Fortune besan
 Fortune Rice

Line 2 products manufactured by Adani Wilmar Ltd.:

 Kings refined soybean oil

 Bullet mustard oil
 Raag Vanaspati
 Raag gold

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Line 1 Products under the brand name of Fortune are as follows:

Fortune Rice Bran Health

Fortune Rice Bran Health Oil is India’s highest selling rice bran oil. Our physically refined oil
with the goodness of Gamma Oryzanol helps increase your good cholesterol and reduce bad
cholesterol, along with a host of other rice bran oil benefits. So, switch to this healthy cooking
oil and make the right choice for your family.

Benefits of Rice bran oil:

 Has a Neutral Taste: Best for cooking Indian

food
 Contains Good Fats: balanced fatty acid
composition, rich in monounsaturated and
polyunsaturated fats and free of trans-fats.
 Heart Friendly: Right amount of Oryzanol
which help lower cholesterol
 Lowers Cholesterol: American Heart
Association and The World Health Organization
(WHO) recommend rice bran oil recommends it.
 Has a High Smoke Point: perfect for stir frying
or deep frying, maintain its nutritive quality even
at high temperatures
 Less Oily: less viscous, does not stick to food
 Rich in Vitamin E: Powerful antioxidant and
has antimutagenic properties which prevent
from cancer, boosts immunity.
Figure 1
 Aids Weight Loss: natural antioxidants
which boost your metabolic rate, long shelf
life.
 Good for the Skin: Squalling keeps it soft, supple and smooth.
 Has Anti-Inflammatory Properties: reduce the effects of menopause like hot flashes

Pet: 1 litre Pouch: 1 litre Jerry Cans: 2 litres, 5 litres, 15 litres

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Figure 2

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Figure 3

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Fortune Kacchi Ghani
Fortune Kacchi Ghani Mustard Oil, traditionally extracted from the first press of mustard seeds,
comes with a high pungency level and strong aroma. Being pure, our cooking oil retains its
natural properties and mustard oil benefits. Its strong aroma and pungency spice up your
cooking.

Benefits of Mustard Oil:

 Made from the first press of mustard seeds in the traditional way
 The best mustard seeds are slowly crushed in a
temperature-controlled environment
 This retains pungency and natural properties
enhancing the taste of the food
 Its high pungency levels also help stimulate your
appetite
 Essential for keeping pickles fresh for a longer
duration while retaining their traditional flavor

Figure 4

Pouches: 500 ml, 1 litre Pet Bottles: 200 ml, 500 ml, 1 litre Jerry Cans: 2 litres, 5 litres, 15
litres,
15 kgs Tin: 5 litres, 15 litres, 15 kgs Barni: 2 litres, 5 litres

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Fortune groundnut oil
Made from fresh groundnut seeds through traditional and organic cold processing, Fortune
Groundnut Filtered Oil maintains its purity and keeps the aroma of the food intact. This peanut-
flavored cooking oil remains stable even at high temperatures.

Pouches: 1 liter Pet Bottles: 1 liter Jerry Cans: 5 liters, 15 liters Tin: 15 kgs

Fortune cottonseed oil

With its less oil absorption properties, Fortune Cottonlite Oil ensures that every home-cooked
meal is healthy and light. Besides having a neutral flavour, our cooking oil retains its quality
even at high temperatures, making it ideal for deep frying.

Pouch: 1 litre Jerry Cans: 5 litres, 15 litres Tins: 15 litres, 15 kg

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Figure 5

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Figure 6

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Figure 7

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Figure 8

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2.2.1 HR Practices

Introduction:
In the generals’ term human resources means knowledge, skills, creative activity and talent of
an organization work force as well as the value attitudes and beliefs of an individual involved.
Earlier the employees of an organization are to be considered as a valuable asset of the firm. In
the firm the employees are working efficiently. They are provided different kind of facilities like
dress, bonus, canteen, transportation. If the employee is from higher authority, hospital
facilities, housing facilities, if there is an emergency need to employee.

Growth and Speed is a way of life at Adani. Exponential growth, diversification into new
businesses and international ventures, have created a wide range of career opportunities at
domestic as well as at international levels, which not only fulfil the aspirations of people but
also meet their passion and professional needs.

Adani provides an open and dynamic work environment where organisation believes in people
and also recognizes that its success and growth are driven by people and is dependent on people
capabilities.

The organisation recognises the critical role that employees play in the success and growth of
each of the businesses. It is the competence and drive of the people that set them apart from other
industries and lend them the competitive edge in building tomorrow's enterprise. Besides having
all these positive features the major negative feature is that Adani Wilmar Ltd. does not freshers
from any campus drive apart from its own institution. They hire off campus freshers or only
experienced people with street smart capabilities and who have creativity par excellence.

The HR Practices of Adani Wilmar Ltd. is as follows:

 Recruitment and Selection

 Performance Management
 Training & Employee Engagement
 Compensation
 Carrier Development

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2.2.2 Competition Analysis

Major competitors for Adani Wilmar in different categories are:

S.no. Product Competitor1 Competitor2 Competitor3 Competitor4

1 Refined Nature fresh Dalda Bail Kolhu Saloni

soyabean oil

2 Kacchi Ghani Bail Kolhu Dalda Tulsi Salon

3 Rice Saffola Sundrop Ricela Rizola

bran
health oil
4 Sun flower Sundrop Dalda Bail Kolhu Mayur
oil

5 Soya Chunks Nutrela Nutreum Sevar

6 Besan Tata Rajdhani Shaktibhogh

7 Vanaspati Rath Dalda Mayur

8 Rice India gate Kohinoor Radical Daawat

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Category Wise Analysis

Fortune Soybean Oil

Strength Weakness
 Market Leader Low Margin
 Uses health platform Damaged Products
 Competitive price

Opportunity Threat
 Increase Brand Promotion Local & Multinational Player
 Increase Trade promotion Nature Fresh, Patanjali

North India has been traditionally a high soyabean consumer state, as soyabean oil provides good
value for money to people here and also tastes good it is used more than any other cooking oil.
Globally also soyabean Oil is the leading vegetable oil traded in the international markets, next
only to palm. Palm and Soyabean Oils together constitute around 68% global edible oil trade
volume, with Soyabean Oil constituting 22.85%. India being the largest importer and consumer
oil of edible oils for its consumption total 5.0-5.5 million tonne of vegetable oils imported by
India annually, 1.3-1.5 million tonne is Soyabean Oil, imported mostly from Argentina, Brazil
and the US.

Core strength of Adani Wilmar in this segment is its distribution capability and consumer loyalty
towards the product, during my market research I have found that there is high brand loyalty for
Fortune Kacchi Ghani and customers aren’t interested in buying any other product. Kacchi
Ghani is liked mostly for its delicious taste and price point most of the customers were satisfied
with the product quality and overall service.

Other competitors like Nature fresh and Patanjali still have to work hard to compete with Adani.
Patanjali can be a potential threat in long run to Adani because of their low price point and
intensive promotion. They are also exploiting health platform to sell their products. So a
comprehensive long term strategy should be adopted by Adani Wilmar to compete with such
rivals.

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 Fortune Mustard Oil

Strength Weakness
 Distribution Low Quality
 Promotion Low Product Equity
 Competitive price

Opportunity Threat
 To capture market share Local Competitors
By providing more Low price
credit competition
 By Providing coupons

Mustard-rapeseed oil has long been one of the most consumed edible oils in India and currently
is third, after palm and soybean oil, even though most mustard is consumed only in the north.
Mustard oil consumption has shown a consistent growth about 5 percent per year for the past 40
years and currently it stands at approximately 2.3 million metric tons annually.

After Soyabean, Mustard oil is the most consumed cooking oil in the region, here some
challenges are poised by companies like Bail Kolhu which are predominantly a regional player
and because of their low cost they are able to do volume trade and also its taste and quality are
liked by the customers. Mostly mustard oil is used for cooking purpose, and also it is used for
pickling and consumption as raw oil directly on foods.

People buying fortune for mustard use are usually from upper middle class and hypermarket
buyers they prefer quality more than price most the people even don’t know about Bail Kolhu
because of low promotion. Adani Wilmar is running many promotion campaigns to boost
Mustard oil sales as and also their product pricing is in line with its peers, which in long run can
help them to increase hold in local markets also.

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 Fortune Sunflower Oil

Strengt Weakness
h Damages
 Promotion Non Refund Product
 Quality Poor after sales service

Opportunity Threat
 Low market share Nature Fresh
 Less Conscious customer Saffola

Sunflower oil has traditionally been marketed in India as healthy edible oil because of its
lighter character and low absorption. Sunflower oil is gaining popularity amongst household
because of its light colour and less sticky property. It is usually preferred by health conscious
customers. Also its price is bit more than Kacchi Ghani and mustard oil.

Sunflower oil has been very popular in southern India and it is widely used for cooking
purposes. Sunflower oil market is majorly held by Nature fresh and Saffola. Adani Wilmar has
to formulate strategy to increase their sales figures. Also people are not much aware about their
health, which is the reason of low sales of sunflower oil in other parts of country. With rising
income levels there most of the potential lies where companies can make aware people about
health benefits of Sunflower oil and encourage them for its use.

As sunflower crop productivity is very less as compared to the demand India is heavily
dependent on import from countries like Ukraine and Russia since 2009 India has seen
continuous rising trend in imports of sunflower seed. In northern India is it still has a lot of
potential to expand its sales as people here use soyabean and mustard oil they can be made
aware about goodness of soyabean oil and alter their buying habits.

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 Fortune Besan

Strength Weakness
 Distribution Capability Late entry in market
 Low Price

Opportunit Threat
y Local as well as national players
 Trade Promotion Shakti Bhog, Tata
 Advertisement

Besan is widely used product all over across India and it has traditional and cultural value also
attached with it. It is a staple ingredient in the cuisine of the Indian subcontinent; mostly besan
is used to prepare cuisines like Laddu, Bundi, Dhokla, Kadhi etc. In Northern region Besan
market is currently dominated by brands like Shakti Bhog, it is having the most market share.
Fortune’s Besan is the national leader in Besan market; also players like TATA are rapidly
expanding their sales in Besan segment.

New entrants like Patanjali are are also developing their market with selling preposition of pure
and natural, Other companies also should use these marketing gimmicks to compete with it.
Although Adani Wilmar’s entry in Besan products is late and initially they were targeting on
edible oil only. Sales of Adani Besan have continuously increased and still market has a lot of
potential to gain from.

There are many customers who buy unbranded Besan from Retail stores; conversion of those
customers into buying branded products can make a significant difference.

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2.2.3 Industry Analysis

FMCG Sector is one of the core sectors of Indian economy and this sector is showed a promising
growth numbers in recent years Rising income levels and favourable demographics is giving a
great boost to this sector during 2016–2020. FMCG market In India is expected to grow at a
CAGR of 20.6 per cent and by 2020 sector is expected to touch USD 103.7 Billion. Total
consumption expenditure to reach nearly USD 3600 billion by 2020 from USD 1469 billion in
2015. Beside urban market rural market is also expected to grow at a CAGR of 14.6 per cent,
during 2016–2025 and reach USD100 billion by 2025. As of 2016, the overall rural FMCG
consumption stands at an estimated USD29.4 billion

Indian markets are gradually moving from traditional stores to modern format retail stores and
India’s modern retail is also expected to grow 3 times the present value by 2020. As middle
class of the country is growing rapidly there is a huge scope for FMCG industry as per capita
disposable income is also set to increase by CAGR 4.1% and is estimated to rise to USD 631 in
2020 from USD 516 in 2015.

Growth Drivers Attractive Opportunities

 Both Demographic and psychographic  Lot of scope of penetration in Rural

factors are key growth drivers for this market
sector.
 Disposable income has also been
 Tier II/III cities are also increased due to the schemes like
witnessing faster growth in direct benefit transfer
modern trade
 Growing demand for premium
products

Higher Investment Policy Support

 Modern retail Share expected to triple  100% FDI approval in single

its growth from US60 Bn to US 180 brand retail & 51% in multi brand
Bn retail

 Patanjali will spend US 743.72 Mn  The minimum Cap for foreign

in various food parks of country. companies to invest in India is US 100
Mn

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The FMCG Sector In India generated revenue worth USD 47.3Bn in 2015 and over 2007-16, the
sector is expected to post CAGR of 11.9% in revenues In the long run, with the system
becoming more transparent & easily compliable, demonetisation is expected to benefit
organised players in the FMCG industry. Also In the long run, with the system becoming more
transparent & easily compliable, demonetisation is expected to benefit organised players in the
FMCG industry. Consumers have started demanding customised products specifically tailored
to their individual tastes and needs. With growing awareness Consumers are becoming more
brand conscious and prefer lifestyle and premium range products given their increasing
disposable income. For this Companies are also focusing on continuous innovation and
customer engagement to strengthen their brand appeal in market.

Trends in FMCG Revenues over the

years (USD Billion)

2007 2008 2009 2010 2011 2012 2013 2015 2016 2020

Figure 13

Source: Booz & Company, Dabur, AC Nielsen, TechSci Research,

Note: F - Forecast

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Companies like Dabur are now trying to Increase its penetration in rural areas to generate more
revenues from rural India and for this they are now focusing on rural segment which is showing a
continuous growth from past few years. They are also focusing on improvising their distribution
network in rural markets and improve efficiency and reach in market.

Hair Care is the leading segment, accounting for 23 per cent of the overall market in terms of
revenue Food Products is the 2nd leading segment of the sector accounting for 19 per cent
followed by health supplements & oral care which has a market share of 16 per cent & 15 per
cent, respectively.

Market Break-up by Revenue (FY16)

5%
7% Hair Care
23% Foods
6%
Health Supplements
9% Oral Care
OTC & Ethicals

19% Home Care

15%
Digestives
Skin Care
16%

Figure 14

Source: Dabur, TechSci Research

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2.3 Organization Business Profile

The major business of Adani Wilmar Ltd. is consumer essentials i.e. FMCG products. They are
the largest and the only national level company in edible oil segment. Adani Wilmar has a
number of products for the consumer segment. These can be categorized in to edible oils, Rice,
Besan & Pulses.

Fortune has been voted as "India's No. 1 Edible oil brand" as per Nielsen Retail Index Report.

AWL's Specialty Fats Business Division has been set up to service the food industry in India
and its neighborhood. With world class technology and the best of plant & machinery backed up
with elaborate Quality Assurance system and product Development & Application facilities,
specialty fats division of AWL is fully geared to meet the most stringent technical specifications
of the food industry.

Adani Wilmar Ltd. produces international quality Standard of Non-GMO Soya Lecithin in all its
facilities (Nagpur, Neemuch, Vidisha, Chhindwara, and Bundi) to meet the respective and
desired specifications of the industry. All our plants are as per International Standards and
equipped with an automated filling and loading facility for Non GMO Soya Lecithin.In addition
to this, Adani Wilmar Ltd. will soon produce value added Soya Products like TVP, Defatted
Soya Flakes Toasted, Untoasted and more. All five plants are Halal and a Kosher Certified and
Nagpur, Neemuch and Vidisha Plants Cert ID Certified. Non GMO Soya Lecithin is used in the
food industry, feed industry, plant industry, leather industry and in explosives for its functional,
nutritional and therapeutic properties. Non GMO Hydrolysed Soya Lecithin is used as an Anti-
Sticking Agent, Anti Staling Agent, and Anti-Spattering Agent. It is also used in Feed Industry.

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 Figure 16

Figure 17

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Figure 18

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Figure 19

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Figure 20

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Figure 21

Figure 22

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Figure 23

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Figure 24

Figure 25

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Figure 27

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Figure 28

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Figure 29

Figure 30

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Figure 31

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Figure 32

Figure 33

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 Improvisation
25

20

15

Series1
10

0
Packaging Price Quality Taste
Figure 34

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Figure 35 Figure 36

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