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“India needs to tap into alternative edible oil choices, better tech”
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Monday, 21 August, 2023, 08 : 00 AM [IST]
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 MK Agrotech is the face behind Sunpure, South India's largest edible oil brand, which was set up by the first-generation entrepreneur Subhan Khan. The company based out of Srirangapatna in Karnataka now has Sunpure, the flagship brand as a household name in the edible oil segment, said Gokaran Singh Pawar, national sales head, Sunpure, in an email interaction with Nandita Vijay. Excerpts:
How would you describe the current scene for edible oils in India?
India is the world’s largest consumer and importer of edible oils, with a demand of around 23 million tonne annually. The edible oils industry in India is a vibrant and dynamic space, with growing competition among the established as well as emerging players.
In recent years, there has been a shift towards healthier and more sustainable edible oil choices, such as olive oil and rice bran oil. However, the mainstay continues to be the traditional edible oils, namely soybean, palm, sunflower, and mustard oil.
What are the visible trends in the segment?
Apart from the perceptible shift in consumer preferences towards healthier and more premium oils like olive oil, avocado oil, and rice bran oil, the biggest trend is more Indian consumers choosing packaged oils over loose oils. Hygiene and adulteration have become key concerns.
It's heartening to see the Indian government implement various policies to promote domestic production of edible oils, leading to an increase in production and reduced reliance on imports. Moreover, as an industry, we are also seeing a substantial increase in investments in research and development to improve the quality and nutritional value of edible oils.
Another positive trend is more Indian companies adopting measures to reduce their carbon footprint and support local communities. There is a growing effort towards sustainable and eco-friendly production practices in the edible oil sector.
What are the challenges facing the edible oil sector?
The main challenge is to make edible oil more affordable. The recent increase in prices of edible oils has been largely attributed to the Ukraine war, rising cost of imports, and the weakening of the Indian rupee. Given that India is a price-sensitive market, we need more edible oils at competitive prices that will appeal to institutions as well as consumers.
To become more self-reliant and reduce its dependence on imports, India needs to tap into alternative edible oil choices and better technologies to avail more quantity of oil. We need to invest in infrastructure for oilseed cultivation and processing. We also need to make dedicated investments in research and development, as well as for promoting sustainable agricultural practices.
How has your company fared over the years? How has the campaign 'MakesYourFoodSpecial' been received, and has it been able to increase sales?
We are a leading player in the edible oil industry in India since 1995. Sunpure has the distinction of being India’s first chemical-free, processed and physically refined oil, with government patented technology. Sunpure Oil is free from chemicals, and is also enriched with Vitamins A, D and E. The company’s production facilities with three plants at Srirangapatna, Challakere, and Nelemanagla maintain the highest standards of hygiene and safety as per FSSAI norms.
Sunpure’s #MakesYourFoodSpecial campaign is a year-long, multilingual campaign across traditional and digital media. It shines light on the strong emotional influence that food has in our lives and our relationships. When you cook for your loved ones with Sunpure Sunflower Oil, you show them that you care about them, their health and well-being.
The campaign drives home the purity of our product through a simple, yet powerful message that food cooked with Sunpure is special. This further reiterates the brand’s core values of purity, trust, care, and honesty, particularly given the encouraging response we received from consumers after Sunpure appointed actor and philanthropist Sonu Sood as the brand ambassador.
Sunpure is a household name in the edible oil segment and continues to expand its presence across key markets in the southern and western regions of India. Has your company been able to sustain this in the wake of stiff competition in this space?
Absolutely! As South India’s largest edible oil brand, Sunpure has been growing consistently, despite the persisting global challenges and tough market realities. In 2022, Sunpure registered a 15% growth, while continuing to garner overwhelming love from consumers in Maharashtra, Karnataka, Kerala, Andhra Pradesh, Telangana, Goa and Tamil Nadu.
Earlier this year, we acquired Riso, a leading edible oil brand from Maharashtra, in a bid to further strengthen our presence in key markets. As part of our ‘Make in India’ initiative, we have been actively building a portfolio of Indian oils, namely, rice bran oil, filtered groundnut oil and refined groundnut oil, with a view to reduce the country’s dependence on imported edible oils.
Apart from that, we recently forayed into the branded spices market with the launch of Sunpure Red Chilli Powder, Sunpure Turmeric Powder and Sunpure Coriander Powder. Soon, the plan is to launch blended spice mixes, as well as further expand our product portfolio to include grains, pulses, dry fruit, and other food products. Our vision to strengthen the brand’s legacy of bringing together technology and tradition.
Today is the age of low fat and less oil. How does Sunpure position itself in this space?
Sunpure’s USP (unique selling proposition) is its purity, that combines the best of technology with tradition. Unlike other brands that use harmful preservatives, Sunpure has made a conscious decision from day one to prioritise the health and well-being of our consumers. Trends come and go, but health remains our top priority and we have never lost sight of our vision.
Having said that, it’s true that people are becoming more health-conscious, particularly when it comes to food choices, since the onset of the pandemic. And that’s an encouraging development. As a brand, we are committed to actively listen to our consumers and cater to their evolving needs.
As India’s only chemical-free processed and physically refined sunflower oil, Sunpure Sunflower Oil, is also enriched with Vitamins A, D, and E. What’s more, our manufacturing process is eco-friendly. Sunpure uses 100% green electricity generated by windmills, producing eight times more power than it consumes! In other words, our products are good for the people and the planet.
Which, according to Sunpure, is fast-moving container: pouches, packets, or bottles?
Based on our sales data, it’s safe to say that one-litre oil pouches are the most sought-after. Next comes the five-litre container that is mostly preferred by consumers who do monthly grocery shopping. This number has been growing consistently across our edible oils categories, including Sunpure Sunflower Oil, Sunpure Rice Bran Oil and Sunpure Filtered Groundnut Oil. We are also seeing a greater acceptance of two-litre pet bottles since Sunpure launched bottles with handles, making it easier to pour out the oil.
Could you detail your distribution network and the need for technology to trace and track your supplies? How are the sales on the e-commerce platform?
We continuously strive to strengthen our distribution network so that consumers can avail of their favourite Sunpure oil at their nearest store. Currently, Sunpure products are available at more than lakh outlets across India; our direct reach is close to 55,000.
Given that edible oil is an essential and fast-moving product, we understand the importance of efficiently managing our supply chain from the factory to the consumer. The entire process is powered by technology - right from manufacturing and transportation to the last mile delivery to retailers.
The feet on street app, for instance, equips our on-ground staff with the purchase history and helps them plan the best order for each retailer, thereby ensuring that there are no stockout or out-of-stock scenarios. Similarly, at the backend, we use management information system (MIS) to ensure that the sales team is updated on every distribution parameter.
As far as sales on our e-commerce platform - Mysunpure.in - is concerned, we are witnessing encouraging response, particularly in Bengaluru and Mysore markets for the Rice Bran Oil and Filtered Groundnut Oil products. We are also seeing an uptick in business from other e-commerce sites, despite the fact that the majority of Indian consumers still prefer to buy edible oils from their neighbourhood kirana stores. In the long-term, we see immense growth potential in this segment.
India is the largest exporter of edible oil as per May 2023 statistics. How does your company contribute to this? What are the expansion plans envisaged in this space?
Our focus is on making India self-reliant in the edible oils space. Our plan is to become a pan-India brand that empowers consumers to embrace healthy living. We are actively investing in assets such as plants, processing units, infrastructure, logistics, and manpower to make this happen.
We are also looking to set up 2 lakhs+ distribution outlets in the next two years. Currently, Sunpure has 800+ distributors across markets. That apart, for this financial year, we have an exciting line-up of new product launches, including a range of local oils, blended spices and nuts.
Would the company look at making a foray into the eastern and northern markets of the country?
Yes! As an aspiring pan-India brand, we hope to cater to consumers across geographies in the near future. The recent acquisition of Riso, a premium edible oil brand from Maharashtra, marks the beginning of our foray into the northern markets.
What are some of the issues that the company faces in this edible oil space with respect to taxes and pricing?
High import duties and changes in tax policies increase the cost of raw materials and equipment, making it challenging to compete with other players in the market. Moreover, the prices of edible oils are often volatile due to various factors like global market trends, weather conditions, and demand-supply dynamics, to name some. This makes it pertinent to constantly adjust our pricing strategy to stay competitive in the market.
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