INTRODUCTION This project is carried out to understand diferent aspects o a distribution channel. For this we selected a certain company and two products under the same group. The selected company is Ruchi Soya and the brand is Nutrela. We are currently discussing about two products under the brand – Nutrela soya chuns and Nutrela oil.
ABOUT THE COMPANY COMPANY Ruchi Soya !ndustries is a part o the Ruchi "roup o !ndustries. # F$%" company& Ruchi Soya is one o the leading producers o 'anaspati& soya oods& edible oils and baery ats in !ndia and is also the biggest e(porter o soya meal rom !ndia. !t is also the highest e(porter o soya meal& lecithin and other ood ingredients rom !ndia. !t has become one o the leading comp compani anies es in the the coun countr try y on the the basi basis s o its its stri strict ct stan standar dards ds o )ual )ualit ity y control& continual inno'ation and in'ention& and superior trading sills. Social initiati'es o Ruchi Soya with a ocus on healthcare& education and women*s empowerment& help in creating sustainable 'alue or society as well as the organisation.
!t has a 'ery wide and e(tensi'e distribution networ that comprises o'er + lah retail stores& o'er ,-- company depots& and around &--- distributors. Ruchi uchi Soya Soya has has atte attemp mpte ted d open opened ed new new mar maret ets s with with its its emph emphasi asis s on pro'iding 'alue goods to consumers in popular and premium range. !t has a strong base in modern retail and prestigious hotel chains.
MAJOR BRANDS UNDER RUCHI SOYA •
Sunrich sun/ower oil
PRODUCT PORTFOLIO OF RUCHI SOYA Nutrela has instant soya& ready to coo soya mi(es& re0ned oils and table spread under its brand oferings. The edible oil range holds a number o brands including $ahaosh& which is an umbrella brand containing Soyabean oil& %ottonseed oil& "roundnut oil1 Ruchi "old 2almolein and Ruchi "old $ustard oil3 Nutrela oils& namely Nutrela Soyabean oil& Nutrela $ustrad oil& Nutrela Sun/ower oil& Nutrela "roundnut oil and Nutrela Rice 4ran oil3 and Sunrich sun/ower oil. Sunrich is a healthier& lighter and clearer super re0ned
sun/ower oil brand. Ruchi No , is a leading edible oil and 5anaspati brand. Ruchi "old and Ruchi Star are mass edible oil brands. The two 'anaspati brands& Nutrigold and Ruchi No. , are regional leaders in their respecti'e categories. !t also manuactures the soap brand Ruchi No. ,& a'ailable in our 'ariants.
MANUFACTURING CAPABILITIES 4usiness 7ilseed
8(traction 9.+: million metric ton
8dible oil Re0ning
9.-; million metric ton
2alm Fruit 2rocessing -.9 million metric ton
Fats Soya meal %apacities 9.-> million metric ton
SWOT ANALYSIS OF RUCHI SOYA Strength
!ndia*s largest manuacturer o edible oil
)uality control standards •
%ontinuous efort to meet consumer needs
Wide and e(tensi'e distribution networ
First e(porter o Soya bean meal to South 8ast and
$iddle 8ast •
%rushing capacity o about ; million tons annually in ,; plants& e(tend o'er ,, locations
@eat products on the Nutrela brand
No control on raw material prices as product is agro based
%omparati'ely less brand awareness
8(pansion into premium segments and global marets
up with restaurants and hotels
Strong industry portolio
Aigh growth prospects in the edible oil industry
%ontrol o'er the price /uctuations
Ruchi Soya has recently teamed up with Bapanese multinational
processed tomato business in !ndia. •
Boint 'enture with [email protected]
$ills and Toyota Tsusho %orporation to launch products lie unctional healthy cooing oils in !ndia.
Boint 'enture with a %anadian Research company to ofer high yielding soya seed 'arieties in !ndia
New initiati'es lie palm plantation and renewable energy sources
Food maret rules and regulations
8ntry o more domestic and international players
Foreign incidents liely to impact the sun/ower oil
Rupee depreciation against oreign currencies has a negati'e impact on the oil import trading
C S 8 6td.
#gro Tech Foods
5imal 7il = Foods 6td.
5ijay Sol'e( 6td.
#nil $odi 7il !ndustries 6td.
"ujarat #mbuja 8(ports 6td.
Tirupati !ndustries D!ndiaE 6td.
Raj 7il $ills
#5T Natural 2roducts 6td.
Natraj 2roteins 6td.
!ndian 8(tractions 6td.
NUTRELA Nutrela was launched by Ruchi Soya !ndustries. Ruchi is the maret leader in the soya ood segment with the Nutrela* brand ha'ing more than a >percent maret share. The company was initially interested in soya oil e(traction with soya meal as a [email protected]
The company identi0ed soya meal as a protein rich ood at low cost in !ndia.
PRODUCTS N"tre%a s!$a &h"nks' gran"%es an( )#n# &h#nks Nutrela& one o the most trusted& ,-- G 'egetarian Soya ood brand in the country& ofers Soya granules& chuns and mini chuns& which are ull o nutrition and are also easy to prepare. Nutrela has enjoyed the trust o its consumers& both in !ndia and o'erseas& or more than :> years and continues to e(pand its range to gi'e more oferings to the consumers.
N"tre%a )"star( !#% !t is made rom the 0rst press o 0nest )uality o mustard seeds. %ontaining [email protected]
and [email protected]
it pro'ides health bene0ts lie& Aelps a'oid %oronary Aeart Hiseases& Aelps Higestion and 4lood %irculation& !mpro'es !mmune System.
N"tre%a s!$a*ean !#% !t is the number one low absorption re0ned Soyabean 7il in !ndia. !t also contains natural plant sterols that helps in reducing cholesterol. !t lasts > times more than regular Soyabean 7il and is enriched with 5itamins #& H = 8. Food cooed with Nutrela Soyabean 7il is :>G less oily. !t gi'es health bene0ts lie& Aealthy or Aeart& 6ow absorption will lead to lower oil !ntae. 6ow #bsorb Soyabean 7il is a'ailable in1 >-- ml pouch& ,6 bottle& ,6 pouch& > 6 Bar& ,> 6 Bar. Aealth 4ene0ts pro'ided are1 up to :>G 6ighter& less 7il per ser'ing.
N"tre%a s"n+!,er !#% !t is the number one low absorption re0ned Sun/ower 7il in the country& and is enriched with 5itamins #& H = 8. !t lasts 9 times more than regular Sun/ower 7il and is :>G less oily when ood is cooed in it. Aealth bene0ts it produces are1 Ip to :>G 6ow #bsorption& Ip to :>G 6ighter& 6ess 7il per Ser'ing& %ontains 2lant Sterols that Reduce %holesterol. 6ow #bsorb
Sun/ower 7il is a'ailable in1 >-- ml pouch& ,6 bottle& ,6 pouch& >6 Bar& ,> 6 Bar.
PROJECT OBJECTI-E To study the efecti'eness o distribution channel o Nutrela products Dsoya chins and oilE in $anipal and Idupi region
SCOPE AND LIMITATIONS 7ur research is limited to the distribution channel o Nutrela 7il and Soya %huns in $anipal and Idupi region.
METHODOLOGY The research wor is being carried out in three phases. The same are described below.
Phase . Secondary research1 6iterature Re'iew& personal inter'iew. 7ther inormation was collected rom the websites and [email protected]
Phase / 2rimary research1 •
Hesign a )uestionnaire rom the parameters collected through secondary research.
Hiscussion with distributors o Nutrela products and retailers through a structured )uestionnaire.
Phase 01 #nalysis o the 0ndings and recommendations.
D#s&"ss#!n str"&t"re •
%onduct an inter'iew with the local retailers in $anipal JIdupi region.
!n depth inter'iew with the distributors o Nutrela products in $anipalJIdupi.
Meet#ng1 %ollected data regarding the distributor*s pro0le& distribution terms and policies& distribution processes. Further inter'iews to collect data regarding the ollowing1 Re'enue& %ost structure D7pe(E& cape(& woring capital and channel R7!& redistribution resources and manpower& number o outlets co'eredJbeatsJre)uency o ser'icing. #ny current problems aced by distributor and any scope or impro'ements were also recorded through the inter'iews.
INDIAN NUTRELA MAR2ET O-ER-IEW Ruchi Soya has entered the [email protected]
@coo DRT%E category under its /agship brand Nutrela. The new products launched would include Nutrela !nstant Soya and Nutrela Ready $i(es. !t is planning a ,-G maret share in this segment by :-,-- cases amount to :> tonne o oil. #round >-- cases out o the total :>-- cases oil are or mustard oil. Sun/ower oil is the most sold product whereas the demand or mustard oil is comparati'ely less in Idupi and $anipal region .!t sells more in eastern part o !ndia. 8ach case consists o around ,: bo(es. So the total SCI o oil sold is 9-&--whereas the total SCI o soya product sold is around +:- bo(es per month. $ost selling product is , litre pouch in edible oil segment. :-- gm. and ,-&--- retail
outlets #ll re0ning plants located near ports& pro'iding easier access to imported edible oil ν Histribution through pipes at ports sa'es transport cost and time. $angalore is one such location which has access to port and hence there is a manuacturing acility or 'anaspati& soya product and re0ning o oil here.
Aence the distributor re)uires one day booing by the retail storesJwholesalers which are located urban& semi urban depending on their order siKe. ! the retail outletJwholesalers mae a onetime bill o Rs. >--then the distributor deli'ers to them the ne(t day ater maing the order. #lso these outlets need to be present in urban or semi urban area. For outlets located in rural areas order is deli'ered a wee ater the order is made .! the order siKe is small enough to be deli'ered in a bie &then they deli'er to the outlets located in rural areas in :@9 days. The stocs despatched is /e(ible as there is no 0(ed time or the )uantity and depends in the retailers. 7il maret is a daily maret and it /uctuates by Rs. , or Rs. : on a daily basis. So the distributor 'isits all major outlets once a wee to collect any order or collect payments. So& the retailer is charged the price or that particular day and hence the rate o oil 'aries on e'ery order whereas the soya chuns rate remains almost 0(ed. The distributor 'isits retail outlets in rural areas once a month& to inorm him about the latest oil price and also to collect any orders.
Pr!("&t )arg#n an( t"rn!8er1 7n an a'erage& the distributor maes a margin o >G and the Retailer margin is ,- G on oil products. !n soya products retailers maes a margin o ,>G. !n
a month around ,? tonne o sun/ower oil is distributed by him towards retailers and wholesalers. This amounts to around ,?-- cases. $ustard oil is > tonne& i.e.& >-- cases and soya products is : tonnes.
r!("&t &ases s!%( sun/ower oil
other oil products
Financial and other Support rom Ruchi Soya !ndustries1 The company sometimes ofers promotional acti'ity to push their products. ! a distributor placed an order or >-- cases& then :> cases will be pro'ided or ree. The distributor can then pass on this incenti'e to his retailers depending upon the order they place with the distributor. #lso the distributor is charged daily rate or the oil products& and sometimes there is a certain percentage o discount ofered when distributor places an order or bul pro0t. 7il products sell more during summer season and there is a minute decrease in the demand or oil products during winter. Aence it is a 'ery seasonal product. #lso& the demand or diferent oil product 'aries across all the states with eastern region ha'ing a much higher demand or mustard oil in eastern
!ndia such as west 4engal& 7rissa than in southern !ndian states. Aence the demand or mustard oil in Idupi district is low.
$aret operation The maret operation o a distributor enlists all the unctions that he has to perorm as a part o his duties and responsibilities. !n the case o our product the distribution channel is as ollows1 @ First the company eeps the goods in its warehouse rom where the product is taen by the distributor to supply it to the retailers and wholesalers. Nutrela doesn*t has any stocist or super stocist deployed or its distribution. While ha'ing a personal inter'iew with the distributor o nutrela& ollowing aspects o maret operation carried out by him were noted down.
,. 7rder booing or ready stoc The distributor boos the order gi'en by retailer and supplies the good on a weely basis. !n urban area& order booing by the retailer has to be done one prior to the deli'ery date whereas in rural areas retailers need to boo : or 9 days in ad'ance or an [email protected]
deli'ery. !n both regions i the )uantity demanded is less& then the distribution is carried on a two wheeler otherwise a car is deployed. This is done to ensure cost efecti'eness. :. Number o retailers by outlet typeJclassi0cation %urrently the distributor ser'es to only retailers and wholesellers. The total number is around ;>- retailers and wholesellers. They do not supply to the institutions as o now. 9. !ndicati'e sales dispersion across diferent outlet typeJclass Histributors most o the sales comes rom supplying the goods to the retailers. From retailers alone the sales is around +- – ?-G while remaining coming rom the wholesellers. ;. $aret co'erage ser'icing re)uency and process – bacward rom warehouse and orward to retailers The distributor co'ers the [email protected]
area rom Cota to Idupi – $anipal region co'ering around 9- Cms in the state. Histributor supplies once a wee to its customers. The process ollowed by him is that 0rst the company eeps the goods in its warehouse rom where the product is taen by the distributor to supply it to the retailers and wholesalers.
Market (e8e%!)ent $aret de'elopment are the acti'ities carried out by both the retailers and the distributors in order to push the products into the maret. This is also done by
pro'iding certain schemesJincenti'es or ofers by the company itsel to maintain good woring terms with the distributor. %urrently i the product is near e(piry Di.e. , monthE then company taes bac the product without any charge to retailers. ! more than : 9 months then they push the retailers to sell the products& i the product still remains then they tae it bac when it nears e(piry. #lso at times the company ofers promotions lie pro'iding ree :> cases to the retailers on the order amount o more than :::::::::::: &ases . No e'ents or programs are being conducted as o now both rom the company*s side as well as rom the retailer*s side.
C"st!)er seg)ents The distributor is in'ol'ed in 4:4 Sales. Ais monthly target is ,? ton D,?-- casesE or sun/ower oil and : ton or soya chuns. 8ach case has ,: bo(es. %urrently the sales dispersion o the two products is as [email protected]
,. Sun/ower oil – :- lahsJmonth :. Soya chuns – 9 lahsJmonth %urrently ollowing are the diferent SCIs supplies by the distributor. 9. Sun/ower 7il @ !n measures o > litter& , litter and ,J: litter. #mong these , litter pacage sells the most. ;. Soya products – !n measures o , g& >-- gm& :-- gm and