Think edible oil, and the $88 billion Cargill wants to be the top-of-the-mind recall for Indian customers... A legacy update...
American MNCs are known for their sharp (or is it shark?!) instincts. The $88 billion Cargill from the country of Uncle Sam seems
to be bent on living up to the benchmark in India too. With a presence in as many as 66 countries with five businesses, Cargill has been for some time testing the Indian market with the shrewdest of strategies. And why not, when India ranks second in terms of production of fruits and vegetables. Brimming with the momentum of double-digit growth and spearheading India’s retail rodeo, Rs.3.6 trillion Indian foods & beverage industry (FICCI statistics) is also emerging as a mascot for global branded food biggies. It’s perhaps no surprise then that this behemoth, in a time span of a decade, has made India its food processing and agricultural outsourcing hub for its global food business.
But what led Cargill to focus on edible oil when they entered India? It was actually a simple logic of market data. At the turn of the last decade, when Cargill had wanted to bet its buck on the desi market, processed food hadn’t yet emerged as a hot business and the only yummy business at that point of time was edible oil. With 70% of India’s edible oil being imported (in 2001) – and Cargill being one of the world’s largest crushers and producers of edible oil – the company made its debut entry in this segment by revealing its ‘Nature Fresh’ edible oil brand. Leveraging its global strength and bucked up with its infrastructure, which includes 3 state-of-the-art refineries, Cargill created a splash in the edible oil market. But just a splash does not a market leader make! And Cargill’s grandiose entry was not adequate to corner big daddy Ruchi Soya and the various unorganised players. So in 2005, the group acquired the domestic Gemini brand. As of today, the figure for oil being imported has dropped down to 45%. But more importantly for Cargill, the edible oil business in India is now slated to reach an incredible amount of Rs.980 billion by 2015 (Rabo India Finance data). In an exclusive interview with 4Ps B&M, Siraj A. Chaudhry, CEO, Refined Oils-India, Cargill, reveals his game plans and his strategies:
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
American MNCs are known for their sharp (or is it shark?!) instincts. The $88 billion Cargill from the country of Uncle Sam seems
to be bent on living up to the benchmark in India too. With a presence in as many as 66 countries with five businesses, Cargill has been for some time testing the Indian market with the shrewdest of strategies. And why not, when India ranks second in terms of production of fruits and vegetables. Brimming with the momentum of double-digit growth and spearheading India’s retail rodeo, Rs.3.6 trillion Indian foods & beverage industry (FICCI statistics) is also emerging as a mascot for global branded food biggies. It’s perhaps no surprise then that this behemoth, in a time span of a decade, has made India its food processing and agricultural outsourcing hub for its global food business.But what led Cargill to focus on edible oil when they entered India? It was actually a simple logic of market data. At the turn of the last decade, when Cargill had wanted to bet its buck on the desi market, processed food hadn’t yet emerged as a hot business and the only yummy business at that point of time was edible oil. With 70% of India’s edible oil being imported (in 2001) – and Cargill being one of the world’s largest crushers and producers of edible oil – the company made its debut entry in this segment by revealing its ‘Nature Fresh’ edible oil brand. Leveraging its global strength and bucked up with its infrastructure, which includes 3 state-of-the-art refineries, Cargill created a splash in the edible oil market. But just a splash does not a market leader make! And Cargill’s grandiose entry was not adequate to corner big daddy Ruchi Soya and the various unorganised players. So in 2005, the group acquired the domestic Gemini brand. As of today, the figure for oil being imported has dropped down to 45%. But more importantly for Cargill, the edible oil business in India is now slated to reach an incredible amount of Rs.980 billion by 2015 (Rabo India Finance data). In an exclusive interview with 4Ps B&M, Siraj A. Chaudhry, CEO, Refined Oils-India, Cargill, reveals his game plans and his strategies:
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
