Farmers in India are fortunate to have access to a wide variety of oilseed crops grown in different agroclimatic zones. Castor, linseed, nigerseed, rapeseed, mustard, and rapeseed are some of the traditionally cultivated oilseeds. Soybean and sunflower oil have become more and more popular recently.
Coconut is the most important crop grown on plantations. The Andaman and Nicobar Islands, Andhra Pradesh, Tamil Nadu, and the northeastern portions of Kerala all grow oil palm. India, therefore, has a wide variety of businesses that produce & sell edible oil. We'll look at a few of India's leading producers of edible oils in this post.
Adani Wilmar Limited
Adani Wilmar is the industry leader in edible oil. It is among India's top 10 FMCG companies for consumers as well as top producers of edible oils. The Adani Group and Wilmar Group formed this collaboration in 1999, and on February 8 of 2022, its shares went public. Among the edible oil products sold under its primary brand, Fortune, are soybean oil, palm oil, rice bran oil, blended mustard oil, cottonseed oil, and sunflower oil. They offer essentials for the kitchen such as wheat flour, lentils, rice, and sugar in addition to edible oils. However, edible oils account for about 65% of their income.
The company runs 22 facilities, 10 crusher units, and 19 refineries across 10 Indian states. It provides service to more than 16 lakh retail locations through its 5,590 distributors.
It has 22 manufacturing plants and a 91 million household reach. Exports of FMCG, industrial supplies, and products prepared with edible oil are received by more than 50 countries.
Gujarat Ambuja Exports Limited
Gujarat Ambuja Exports Limited (GAEL), a major producer of edible oils in India, was founded in 1991. It produces cotton yarn, feed ingredients, corn derivatives, cooking oils, and cornstarch-based products. The agro-processing sector has a long-term expansion plan.
Among its clients are ITC, HUL, Dabur, Asian Paints, Patanjali, Colgate, Nestle, Mondelez, Parle, Biocon, Cargill India, and Heinz. With 4,600 TPD, it has India's second-largest capacity for crushing soybeans. It has a 1200 tpd oil production capacity.
Ruchi Soya Industries Limited
Ruchi Soya Industries Limited is one of India's biggest producers of edible oils. In 2019, Patanjali Ayurveda bought it for $4,350 crores. The company was a member of the Ruchi group. It manufactures and sells food products such as cooking oils, soy products, and baking fats.
Among the oils offered under the company's umbrella brand, Mahakosh is groundnut oil, cottonseed oil, Ruchi Gold palmolein, and Ruchi Gold mustard oil. Under the brand name Nutrela, soybean oil, mustard oil, sunflower oil, groundnut oil, and rice bran oil are all available for purchase. Since its founding in 1986, Ruchi Soya has grown to become an Indian farm-to-fork edible oil industry. It currently holds one of India's largest palm farms and is ranked among the top FMCG corporations.
Gokul Agro Resources Limited
Gokul Agro Resources Limited manufactures meals, edible oils, and non-edible oils; however, in FY 2020–21, the company's sales were mostly made of edible oils and associated by-products, making up 83.84% of total sales. Zaika, Vitalife, and Mahek are a few of its edible oil brand names.
China, South Korea, the European Union, as well as the United States are just a few of the nations to which it sends its products. 13.34% of the company's income comes from exports. It runs a marketing and distribution network in 20 Indian states.
The company has a perfect debt-to-equity ratio of 0.53 and a lower PE ratio than the industry average, both of which are good. If we look at the three-year average, it has a fantastic current ratio of 1.12, and its sales climbed by 18.34% while its net profit increased by 42.45%.
Agro Tech Foods Limited
One of the biggest edible oil firms in India today, Agro Tech Foods Limited manufactures, distributes, and sells a variety of food items, including edible oils. It is traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). One of the largest food companies in the world, ConAgra Brands, Inc., is connected to them.
At the moment, edible oils account for about 61% of its sales, but it has difficulties due to limitations, oil availability, high costs, and intense rivalry. Its distribution network, which supplies items to more than 4,00,000 shops in India, is made up of more than 1100 distributors. Small-cap stock with a respectable current ratio of 2.56, Agro-tech Foods Limited does well.
The promoters hold 51.77% of the company, a percentage that has not moved in more than five quarters. Both its revenue and profits have grown slowly as compared to the typical over the preceding three years.
Ajanta Soya
The main products that Ajanta Soya manufactures and distributes are vanaspati and cooking oils. In addition, a range of shortening products is produced for use in bakeries with biscuits, pastries, and other foods. Additionally, it manufactures refined oils for various well-known brands on a contract basis. Some of their trademarks include Dhruv, Anchal, and Parv.
Cremica, Britannia, Godrej, Bikano, United Biscuits, Anmol, Sungold, Parle, Harvest Gold, PepsiCo, PriyaGold, ITC, and Haldirams are a some of its most important clients. To boost share liquidity, the company's board of directors has approved a stock split of 5:1. It is currently regarded as one of India's top producers of edible oils.
Marico
The company's wide range of products includes edible oils, coconut oil, hair oils, hair care products, and men's grooming supplies. About 66% of business sales are in the edible oil market. The market share of Marico's edible oil brand Saffola in the super-premium refined oil category is 83%.
The value and volume of its edible oil industry have risen steadily over time. The epidemic's increased home consumption and the shift in consumer tastes toward healthier cooking are primarily to blame.
Due to its edible oil business growth, Marico's revenue climbed at a compound annual growth rate (CAGR) of 3.1% during the past three years. The CAGR for the net profit was 2%. In the most recent quarter, its revenues rose 13% year over year.
Inflationary pressures only resulted in a 1% increase in net profit. The company intends to grow its edible oil business into new markets by leveraging its effective Saffolalife marketing and deepening its penetration in current areas.
