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Edible Oil Manufacturers in India – Growing Market attracts MNCs (Cargill,ConAgra) to the Mustard,SoyaOil Industry

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Indian vegEdibile Oiletable oil economy is the fourth largest in the world

India is one of the fastest growing economies in the world, this growth is driving income levels to unprecedented levels across all strata’s of society. Unfortunately affluence comes with a curse. Currently, India is the world’s capital in cardio-vascular diseases & diabetes and in years to come these lifestyle disorders is only expected to increase. Today, 4 Indians die every minute due to a heart ailment. Consumption of more than one oil has been suggested to get balanced quantity of saturated, monounsaturated and polyunsaturated fat required for the body, along with a variety of micronutrients present in different oils. Research findings suggest that oils with high monounsaturated fat are healthier.

Review of the Indian Edible Oil Market

The Indian vegetable oil economy is the fourth largest in the world after US, China & Brazil. Since 1995, India’s share has been 10% of the world production of oilseeds. A wide range of oilseeds crops grow in India. Groundnut, soyabean & mustard together contribute 85% of India’s oilseeds production, as per a report by Indian law office. Mustard oil is the third largest edible oil produced in the world after Soy oil and Palm oil. At a production level of 13-14 million tons, it accounts for about 12% of the total World’s edible oil production.

Recently Indians are moving to Olive oil as a healthy medium for cooking purposes. Until 2002 it was recognised for cosmetic use only. The domestic olive oil consumption is rising 25% annually, as per a report by Indian law office.

The Indian market in volume and revenue terms is quite large and has seen increasing investment from foreign players.However the margins in this industry are quite low which implies that the profitability is much lower in the Edible Oil Market in India.There are also large regional players which have strengths in their domestic turf.The Edible Oil Sector has seen a number of M&A deals in recent times as well.KS Oils which is a large player back by some of the top name PE has been in trouble in recent times due to its large debt.

The major edible oil market players in India are:


List of Edible Oil Manufacturers

  1. Marico is a leading Indian group providing consumer products and services in the areas of Health and Beauty. During 2009-10, the company generated a Turnover of about Rs.26.6 billion, in respect of its food, hair care and skin care related activities. The major brands of Marico holding significant market share are Parachute and Saffola. Saffola has a unique double action which helps reduce cholesterol & absorbs less into food.  Saffola gold is made through an exclusive protection technology called losorb that makes the oil more stable during deep-frying. No other oil or blend of oil in the country has this technology. The product Saffola gold has the internationally proven formula of 80% rice bran oil and 20% of safflower oil. Studies have shown that, a right combination of Safflower Oil and Rice Bran Oil is more effective in reducing cholesterol than each of the oils singly. Saffola always promotes the adoption of a healthier lifestyle for your heart. Towards this end, Saffolalife conducts several events every year on the eve of World Heart Day to spread awareness of the risk factors leading to heart disease and the preventive steps against the same. In addition, events like Walkathons and Health Check-up Camps are held frequently through the year.
  2. Adani Wilmar Limited – a 50:50 joint venture between two recognized Multinational Corporations – Adani Group, the leader in International trading, Power Sector and Private infrastructure, and Wilmar International Limited, Singapore, Asia’s leading Agri business group. Adani Wilmar Ltd.’s flagship brand Fortune has maintained its market leadership for last several years. Fortune Refined Soyabean Oil is light, odourless and healthy oil. Most importantly it contains Omega – 3 fatty acid which is an essential PUFA that needs to be supplemented from outside sources.To cater to the needs of Indian consumer market, AWL also introduces King’s range of refined oils. It has under its portfolio, Soya, Sun, Refined Mustard and Cottonseed oil. AWL also has as part of its edible oil portfolio, Bullet brand mustard oils and a coconut oil under the brand name Ivory, a Refined Palmolein Oil under the brand name of Raag Gold, a premium vanaspati brand called Raag, special frying oil called Fryola and Speciality Fats under brand name Jubilee Masterchef.
  3. Rasoi – The Rasoi Group consists of many companies which include Public Limited listed companies and Private Limited companies. The total worth of the listed companies of the Rasoi Group is USD 200 million with the group turnover of USD 100 million. The Group interests in Edible Oils, Margarine, Food, Consumer non-durables, Auto Components, Real Estate and OTC Healthcare products. Rasoi Ltd. produces major categories of edible oil like Rasoi vanaspati, refined ricebran oil, refined soyabean oil, sunflower & palm oil. The most popular amongst all is the Rasoi Vanaspati oil. It is the trusted brand for vanaspati for over 50 years. It is vitamin enriched hydrogenated vegetable oil.
  4. Agro Tech Foods Ltd. – It is a public limited company engaged in the business of marketing food and food ingredients to consumers and institutional customers. The company is affiliated to ConAgra Foods Inc. of USA, which is one the world’s largest food companies. Sundrop is the largest brand in the premium segment of the refined oil consumer packs. Sundrop was launched in 1989 as sunflower oil, in a predominantly groundnut and mustard oil market. From being one of the first players in the sunflower market, to one of the largest selling refined edible oil brands, Sundrop has come a long way. All Sundrop products are low in saturated fats. Sundrop is rich in natural vitamin and provides 100% purity. It comes in four variants -Sundrop superlite, nutrilite, heart & goldlite.
  5. National Dairy Development Board, Mother Dairy – Dhara  is the flagship brand of Mother Dairy . The production and packaging operations of Dhara are strategically spread over major oilseed producing areas in Gujarat (Palanpur, Rajkot and Kandla), Rajasthan (Alwar and Bharatpur) and Karnataka (Hospet). Dhara has been continuously satisfying the needs of the consumers in different parts of the country through a range of high quality edible oils in various pack variants, covering refined mustard oil, kachi ghani mustard oil, filtered mustard oil, refined sunflower oil, groundnut oil, refined soyabean oil & refined rice bran oil. Dhara Mustard Oil is a good source of monounsaturated fatty acid with Natural Omega 3. Dhara Groundnut Oil is a good source of saturated, monounsaturated and polyunsaturated fatty acids with natural flavour & taste of groundnut.
  6. Bunge Limited – is a $52-billion New York-based agri-business major. It is the top supplier of edible oil to the North American food service industry, and one of the biggest oilseed producers. In 2003, Bunge Ltd. bought over the Dalda brand from Hindustan Lever. Bunge being the largest manufacturer of bottled oils in the world extended the Dalda brand name to its range of refined and filtered oils in India. Since then, the dalda product range has been extended to include a range of edible oils – Dalda Husband’s choice Refined soyabean, ghani mustard, sunflower & groundnut oils to establish itself into the edible oil business in Asia. The Dalda Vanaspati is known for its superior quality of the vegetable oils with high unsaturation points. Stringent controls maintained on the refining process ensure that Dalda Vanaspati imparts a distinctive flavour to food cooked in it. It is subjected to optimum and extended hydrogenation which ensures a superior aroma as compared to its competitors.
  7. KS Oils – K S Oils is a leading edible oil company and sells edible oil brands like Kalash, Double Sher, K S Gold, among others. They have  products in mustard oil, soybean oil and palm oil .Their primary comptency is  in mustard oil in India ,where they claim to enjoy a  11% market share in the overall mustard oil segment with a dominant 25% market leadership in branded mustard oil.
  8. Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, privately held company employs 130,000 people in 63 countries.Cargill maintains a number of businesses in India, with operations including the handling and processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton and animal feed.They have three vegetable oil refineries located at Paradeep (Orisa),  Kandla (Gujarat) and Kurkumbh (Maharastra). They bought the Rath brand from Agro Tech Food


India is the 4th largest Edible Oil Economy already and in the coming days should overtake Brazil and USA to become the second largest.It is already a major price setter of international edible oil prices like palm oil.It is also a large producer of edible oils.Domestic companies are looking to vertically integrate by buying up plantations in Africa and other places.While the margins are low in the business,the industry is relatively immune to cycles because it a major food item which is used daily in Indian households.



Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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