Vous êtes sur la page 1sur 84

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
such organs as the American Heart Association and the world

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


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.

A.R.G. College of Arts & Commerce 2


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.

A.R.G. College of Arts & Commerce 3


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.
a) 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.

1) 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.

A.R.G. College of Arts & Commerce 4


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

A.R.G. College of Arts & Commerce 5


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.

A.R.G. College of Arts & Commerce 6


COMPANY PROFILE

SREE ANJANEYA AGRO-TECH PVT.LTD DAVANGERE


2.1 Company at a Glance
Serial Company at a Glance Name of the industrial concern
No
1 Name of the Industrial M/S Sree Anjaneya Agro-Tech PVT Ltd.
Concern
2 Address “Jayalakshmi
a) Registered office P.B. Road,
Davangere -577002. Sy No. 80/81,
Mahajenahally (NH4) Harihar Taluk
Davangere Dist. Karnataka
3. Directors
a) Sri A.S. Veeranna Chairman
b) Sri. R. Manjunath Managing Director
c) Sri. A.K. Prasanth Executive Director
d) Sri. G.V. Vikas Director
e) Sri Savan Y. Ambarkar Executive Director
f) A.C. Chetak Director
g) Sri. A.S. Kotrappa Director
h) Sri. A. Channabassapppa Director
i) Sri.B.K. Rajashekarappa Director
j) Sri. K.K. Mahesh Director
4 Line of activity Edible oil extraction
5 Size of the industry Medium Scale Industry
6 Capacity SEPI –Rice bran/cake
a) Installed-existing capacity 150/200MTS/day
SEPII – Soya bean, rice bran/oil lake
150/200 TS/day Edible oil refinery TS
b)Maximum Operating MTS per day capacity
Capacity 90%

A.R.G. College of Arts & Commerce 7


c) Main raw materials 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

A.R.G. College of Arts & Commerce 8


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 33.28
b) Debt equity ratio (1 year) 1.68
c) Debt Service Coverage ratio (overage) 2.12
d) Internal rate of return 20.5 Lakhs
e) Profit before tax @ Maximum Capacity Utilization 5105.64 lakhs
f) Break even Point in terms of Sales
1 Employment potential 100 per Shares
0
1 Power requirement 500 Kva
1

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.

A.R.G. College of Arts & Commerce 9


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.

A.R.G. College of Arts & Commerce 10


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.

A.R.G. College of Arts & Commerce 11


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.

A.R.G. College of Arts & Commerce 12


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:

A.R.G. College of Arts & Commerce 13


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.

A.R.G. College of Arts & Commerce 14


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:

A.R.G. College of Arts & Commerce 15


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.

A.R.G. College of Arts & Commerce 16


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.

A.R.G. College of Arts & Commerce 17


2.12 Financial Results of the company

A.R.G. College of Arts & Commerce 18


A.R.G. College of Arts & Commerce 19
A.R.G. College of Arts & Commerce 20
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.

A.R.G. College of Arts & Commerce 21


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.

A.R.G. College of Arts & Commerce 22


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.

A.R.G. College of Arts & Commerce 23


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. Name Relationship Nature of Amount Outstanding
No. Transaction (Rs. In as on 31-03-
Lakhs) 2007 (Rs. In
lakhs)
1 A.K. Prashanth Managing Remuneration 3.60 Nil
Director
2 Savan Y Ambertcer Executive Remuneration 2.40 Nil
Director
3 Sree Mallikarjuna Director is the Purchase of 64.07 2.26
Enterprises, Davangere Partner Soya Bean
Seeds
4 Sree Mallikarjuna Director is the Rice Bran 741.27 Nil
Agencies, Davangere Partner

A.R.G. College of Arts & Commerce 24


Organisation chart

Assistant
Store
Accountant
Delivery
Salesman
Quality
Computer
Auto
Production
Mechanical
Manager
Director
keeper
Driver
Control
Manager
Boys
Operator
Manager
Manager

A.R.G. College of Arts & Commerce 25


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.

A.R.G. College of Arts & Commerce 26


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

A.R.G. College of Arts & Commerce 27


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%.

A.R.G. College of Arts & Commerce 28


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.

A.R.G. College of Arts & Commerce 29


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

A.R.G. College of Arts & Commerce 30


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.

A.R.G. College of Arts & Commerce 31


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

A.R.G. College of Arts & Commerce 32


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.

A.R.G. College of Arts & Commerce 33


a) 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.
b) 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.
c) 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.

A.R.G. College of Arts & Commerce 34


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.

A.R.G. College of Arts & Commerce 35


INDIAN SCENARIO
4.1 Indian oilseeds Area, Production and Yield

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


Groundnut
Area 7,600 7,090 7,570 6,870 6,560 6,240 5,950
Production 8,640 7,370 8,980 5,250 6,410 7,030 4,370
Yield 1,138 1,040 1,210 766 977 1,127 733
sesamum 1,670 1,560
Area 1,990 1,660 580 480 1,720 1,670 1,380
Production 640 570 332 308 520 700 430
Yield 322 342 301 418 311
Rapeseed
Area 6,540 7,040 6,600 6,030 4,480 5,070 4,480
Production 6,660 4,700 5,660 5,790 4,190 5,080 3,840
Yield 1,017 668 875 960 935 1,002 857
Sunflower
seed
Area 1,930 1,740 2,000 1,290 1,060 1,180 1,640
Production 1,250 890 950 690 650 680 900
Yield 646 508 584 538 602 577 550
Soybean
Area 5,450 5,990 6,310 6,220 6,420 6,340 5,870
Production 5,380 6,460 7,140 7,080 5,280 5,960 4,560
Yield 987 1,079 1,100 1,138 822 940 777
Safflower
seed
Area 710 620 530 440 420 400 350
Production 450 120 240 260 200 210 160
Yield 639 199 614 594 476 546 450

A.R.G. College of Arts & Commerce 36


Linseseed
Area 830 790 800 590 580 540 460
Production 310 240 260 240 200 220 170
Yield 373 299 344 408 351 390 376
Castorseed
Area 740 640 690 780 1,080 720 590
Production 900 830 840 770 880 650 430
Yield 1,218 1,292 1,221 979 818 911 732
Nigerseed
Area 550 550 540 500 440 480 430
Production 150 140 140 150 110 130 110
Yield 278 263 304 293 257 272 250
Total Nine
Area 26,340 26,120 26,710 24,280 22,770 22,640 24,140
Production 24,380 21,320 24,740 20,110 18,440 20,660 14,990
Yield 926 816 944 853 810 913 708

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

A.R.G. College of Arts & Commerce 37


A.R.G. College of Arts & Commerce 38
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 03-04 02/03 01/02 00/01 04-05 03-04 02/03 01/02 00/01 04-05 03-04 02/03 01/02 00/01
(F) (P) (F) (P) (F) (P)

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

A.R.G. College of Arts & Commerce 39


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 20.37
Cotton oil 4.13 3.95 4.30 3.94 3.87 3.88 4.07 4.03 4.13
Groundnut Oil 4.90 4.45 5.32 4.984 4.46 4.78 4.38 4.51 4.43
Sunflower Oil 9.48 8.61 7.45 8.69 9.55 9.30 8.64 9.15 8.95
Rapeseed oil 13.96 12.31 13.45 14.01 14.55 12.71 12.22 11.48 11.67
Sesame oil 0.78 0.18 0.83 0.72 0.69 0.69 0.74 0.68 0.63
Corn Oil 2.05 2.03 1.99 1.95 1.95 1.99 1.93 1.87 1.81
Palm Oil 2.91 2.65 2.78 2.73 2.41 2.54 2.56 2.77 1.60
Palm Kernel oil 28.42 27.52 25.07 23.81 21.27 19.50 16.97 17.49 16.15
Coconut Oil 3.38 3.28 2.99 2.91 2.65 2.45 2.18 2.18 2.06
Butter as fat 3.20 3.21 3.25 3.51 3.08 2.37 3.45 3.15 2.91
Lard 6.44 6.28 6.22 5.99 5.94 5.87 5.73 5.70 5.67
Fish Oil 7.28 7.09 6.88 6.69 6.68 6.69 6.20 5.97 5.85
Linseed oil 0.61 0.60 0.63 0.67 0.71 0.73 0.68 0.66 0.66
Castor oil 0.45 0.42 0.45 0.52 0.48 0.44 0.46 0.46 0.48
Tallow 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 96.18
Source : Oil World, F- Forecast, P-Provisional

A.R.G. College of Arts & Commerce 40


4.4. India Feed Update
(Qty. ‘000 tons)
Oil seed 2003-04 2002-03 2001-02
(Oct – Sept) (Oct –Sept). (Oct-Sept)
Production :
Soybeans 7100.00 4300.00 5350.00
Cotton seed 5660.00 4650.00 5370.00
Ground nuts 4950.00 3300.00 4900.00
Sunflower See 1160.00 1060.00 726.00
Rapeseed 6500.00 3700.00 4850.00
Sesame seed 800.00 620.00 730.00
Palmkernels 11.00 10.00 8.00
Copra 700.00 690.00 713.00
Linseed 230.00 200.00 240.00
Castor seed 670.00 550.00 610.00
Total 27781.00 19080.00 23497.00
Net import :
Soybeans 0.20 0.20 0.10
Rapeseed 10.00 14.3 11.50
Copra 1.80 1.7 1.90
Linseed 4.50 4.70 4.30
Total 16.50 20.80 17.90
Crushings :
Soybeans 6310.00 3700.00 4620.00
Cotton seed 4120.00 3360.00 3880.00
Ground nuts 3400.00 2000.00 3420.00
Sunflower See 1070.00 970.00 675.00
Rapeseed 5010.00 3555.00 4465.00
Sesame seed 390.00 380.00 382.00
Palmkernels 9.80 8.70 7.20
Copra 697.50 702.70 702.30
Linseed 205.10 191.90 219.40
Castor seed 637.50 601.80 658.00
Total 21849.90 15470.20 19028.90
Supply
(Consumption)
Soybeans meal 1715.50 1668.70 1344.00
Cotton meal 3295.00 2685.90 3101.60
Groundnut meal 1739.40 1137.50 1828.80
Sunflower meal 505.00 470.50 318.40
Rapeseed meal 2344.50 1648.30 2278.90
Sesame meal 225.60 219.80 221.00
Corngl. Feed - 5.80 0.20

A.R.G. College of Arts & Commerce 41


Palmkern Meal 9.40 17.10 11.90
Copra Meal 284.10 268.00 257.90
Linseed meal 131.20 122.80 140.40
Fish meal 50.20 49.20 38.00
Total 10300.00 8278.60 9528.90
Imports :
Soybean meal 0.20 0.40 0.30
Cotton meal - 0.10 -
Corngl. Meal - 5.80 0.20
Palmkern. Meal 5.00 13.10 1.30
Copra Meal 39.00 18.30 7.90
Fish Meal 41.00 38.60 32.90
Total 85.20 76.20 42.60

Production :
Beef & Veal 3000.00 2965.00 2925.00
Pork 638.00 625.00 613.00
Mutton/Lamb 714.00 710.00 705.00
Poultry Meat 700.00 670.00 630.00
Other meal 108.00 146.00 146.00
Total 5200.00 5116.00 5019.00
Population: 1082300.00 1065460.00 1049580.00
(‘000)

A.R.G. College of Arts & Commerce 42


4.5 China feed update
(Qty. ‘000 tons)
Oil seed 2003-04 2002-03 2001-02
(Oct – Sept) (Oct –Sept). (Oct-Sept)
Production :
Soybeans 162000.00 16300.00 15450.00
Cotton seed 8669.00 8758.00 9470.00
Ground nuts 9900.00 10100.00 10150.00
Sunflower Seed 1800.00 1900.00 1750.00
Rapeseed 11000.00 10300.00 11320.00
Sesame seed 650.00 800.00 805.00
Linseed 460.00 463.00 420.00
Castor seed 258.00 265.00 260.00
Total 48937.00 48886.00 49625.00
Net import :
Soybeans 18800.00 20417.40 10385.90
Groundnuts 2.00 0.60 2.00
Rapeseed 675.20 51.30 774.80
Sesameseed 155.00 3.90 4.30
Copra 0.10 0.10 0.10
Linseed 5.50 8.50 -
Castorseed 3.00 3.10 0.10
Sunflower seed 3.30 1.70 3.90
Total 19644.10 20486.70 11171.00
Crushings :
Soybeans 277100.00 25820.00 20670.00
Cottonseed 7890.00 8020.00 8590.00
Groundnuts 5600.00 5745.00 6225.00
Sunflower seed 815.00 885.00 873.00
Rapeseed 10670.00 9640.00 11360.00
Sesameseed 460.00 470.00 533.00
Linseed 415.00 415.00 418.00
Castorseed 250.00 260.00 264.00
Supply
(consumption)
Soybeans meal 21350.00 20106.30 16224.70
Cotton meal 4985.00 5031.20 5331.60
Groundnut meal 3345.00 3354.60 3620.9
Sunflower meal 475.00 515.60 496.40
Rapeseed meal 6412.70 5736.30 6793.80
Sesame meal 240.00 243.20 277.30

A.R.G. College of Arts & Commerce 43


Corngerm meal 150.00 145.00 141.30
Corngl. Feed 141.00 121.20 128.70
Palmkern Meal 8.00 0.50 21.40
Copra Meal 16.20 0.10 0.50
Linseed meal 277.00 278.00 280.10
Fish meal 1660.00 1717.90 1814.70
Total 39060.00 37250.10 35131.40
Imports:
Soybean Meal 32.70 0.40 20.80
Groundnut Meal 72.00 - -
Sunflower Meal 12.10 13.40 -
Rapeseed meal 40.00 14.30 -
Corngl. Feed 20.00 12.30 17.00
Palmkern. Meal 8.00 0.50 21.40
Copra Meal 16.20 0.10 3.00
Fish Meal 856.00 818.90 1122.50
Cotton Meal 10.40 8.00 1.60
Total 1067.40 867.90 1186.30
Production :
Beef & veal 6040.00 5830.00 5600.00
Pork 44800.00 43350.00 41845.00
Mutton / Lamb 3270.00 3120.00 2950.00
Poultry Meat 14300.00 13770.00 13287.00
Other meals 460.00 440.00 425.00
Total 68870.00 66510.00 64107.00
Population : (‘000) 12815.20 12723.60 12628.90
Source: Oil world 2004

A.R.G. College of Arts & Commerce 44


4.6 State wise solvent extraction units and processing capacity
(SEA Members)

State No. of Processing capacity


Solvent Over all oilseeds / Oil Rice Bran processing
Extraction cake processing capacity with overall
units capacity 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 7608600
Nepal 1 80 24000 60 18000
Grand Total 317 69075 20722500 25422 7626600
Source : SEA book 2005

Oil Seeds / Oil cake and rice bran processing capacity of solvent
extraction units (SEA members) (1985 to 2004)

Year No. of Processing capacity


Over all oilseeds / Oil cake Rice Bran processing capacity
Solvent
processing capacity with overall oilseeds / oil cake
Extraction
processing capacity
units
Daily Annual (300 Daily Annual (300 days)

A.R.G. College of Arts & Commerce 45


M.T days) M.T M.T 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

A.R.G. College of Arts & Commerce 46


4.7 Supply locations and prices of food grade hexane (November
2004) M/s. Hindustan Petroleum Corporation Ltd.,

Location / Basic Price Excise Duty 16% Total


Customer Rs. / KL Education cess 2% on Rs. /KL
CE Rs. = -16.32%
Mumbai 22700 3704.64 26404.64
Shakurbasti (Delhi) 24400 3982.08 28382.08
Manglia (Indore) 23600 3851.52 27451.52
Vijayawada 23300 3802.56 27102.56
Tondiarpeth 23400 3818.88 27128.88
(Depo) Madras
Amousi (Lucknow) 24800 4047.46 28847.36
Jaipur 23800 3884.16 27684.16
Budge-Budge 25100 4096.32 29196.32
Ghatkesar 22900 3737.28 26637.28
(Hyderabad)
Nandesari (Baroda) 22800 3720.96 26520.96
Ambala (Haryana) 24600 4014.72 28614.72
Irumpunam 24000 3916.80 27916.80
Source: SEA book 2005

M/s. Bharat Petroleum Corporation Ltd.,

Location / Basic Price Excise Duty 16% Total


Customer Rs. / KL Education cess 2% on Rs. /KL
CE Rs. = -16.32%
Ex-Mumbai 22700 3704.64 26404.64
Ex-Calcutta 25100 4096.32 29196.32
Ex-Brijwasan 24400 3982.08 28382.08
(Delhi)
Ex-Manglia 23600 3851.52 27451.52
(Indore)
Ex-Chelapally 23700 3867.84 27567.84
(AP)
Ex-Tondiarpeth 23400 3818.88 37218.88
(Chennai)
Source: SEA book 2005

A.R.G. College of Arts & Commerce 47


M/s. Indian Oil Corporation Ltd.,

Location / Basic Price Excise Duty 16% Total


Customer Rs. / KL Education cess 2% on Rs. /KL
CE Rs. = -16.32%
Indore 23600 3851.52 27451.52
Guntkal 22760 3714.43 26474.43
Chennai 23200 3786.24 26986.24
Ex-Koyali for 21450 3500.64 24950.64
Gujrat Market
Ex-Koyali for 22380 3652.41 26032.41
Maharashtra
Market
Source: SEA book 2005

A.R.G. College of Arts & Commerce 48


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.

A.R.G. College of Arts & Commerce 49


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.

A.R.G. College of Arts & Commerce 50


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:

A.R.G. College of Arts & Commerce 51


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

A.R.G. College of Arts & Commerce 52


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

A.R.G. College of Arts & Commerce 53


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.

A.R.G. College of Arts & Commerce 54


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.

A.R.G. College of Arts & Commerce 55


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.

A.R.G. College of Arts & Commerce 56


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.

A.R.G. College of Arts & Commerce 57


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.

A.R.G. College of Arts & Commerce 58


A.R.G. College of Arts & Commerce 59
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.

Source : Table 1

A.R.G. College of Arts & Commerce 60


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.

Source : Table 2

A.R.G. College of Arts & Commerce 61


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.

Source : Table 3

A.R.G. College of Arts & Commerce 62


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.

A.R.G. College of Arts & Commerce 63


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.

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

A.R.G. College of Arts & Commerce 64


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

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
Source : Survey data
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
Source : Survey data

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%).

A.R.G. College of Arts & Commerce 65


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.

Source : Table 1

A.R.G. College of Arts & Commerce 66


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.

Source : Table 2

A.R.G. College of Arts & Commerce 67


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.

Source : Table 3

A.R.G. College of Arts & Commerce 68


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%.

Source : Table 5

A.R.G. College of Arts & Commerce 69


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.

A.R.G. College of Arts & Commerce 70


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%).

Source : Table 7

A.R.G. College of Arts & Commerce 71


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.

A.R.G. College of Arts & Commerce 72


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

A.R.G. College of Arts & Commerce 73


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:

A.R.G. College of Arts & Commerce 74


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.

A.R.G. College of Arts & Commerce 75


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.

A.R.G. College of Arts & Commerce 76


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

A.R.G. College of Arts & Commerce 77


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

A.R.G. College of Arts & Commerce 78


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

A.R.G. College of Arts & Commerce 79


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

A.R.G. College of Arts & Commerce 80


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?

A.R.G. College of Arts & Commerce 81


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

A.R.G. College of Arts & Commerce 82


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

A.R.G. College of Arts & Commerce 83


Bibliography
➢ Text book Philip Kotler

➢ SEA book

➢ World oil magazine

➢ Google.com

➢ Ask.com

➢ Oilseed.com

➢ Akshath.com

A.R.G. College of Arts & Commerce 84