1. Interface for FDI Through Public Private
Partnership (PPP Mode): Crusade for competitive
linkage by Edible Oil sector of India.
Resource & Agricultural Economics,
Institute of Agricultural Sciences,
Banaras Hindu University,
Varanasi-221 005, India
3. Vision & Mission
To delight the consumer through a complete vegetable oils
solution, through continuous research and development in healthier oil
varieties, leading to a single-stop convenience.
We expect to extend our leadership from saturated fats to the entire
vegetable oil segment in the first stage and then to agro-based premium
food products thereafter, from one region in India to a global
manufacturing and marketing presence.
• Company Brief
• Company Overview
• Industry Dynamics
• Edible Oil Sector Overview
• Palm Oil Positioning
• JVL Positioning
• JVL Capacity Expansion
• Palm Oil Business Cycle
• Summary and Way Forward
5. Company Brief
•Established in 1989
•Over two decades of rich experience in the edible oil industry
•Single largest producer of Vegetable Ghee in India
•Refined Palm Oil , Soybean Oil, Mustard Oil and Vegetable Ghee
•One of the Largest crude edible oil importer in India
•Leadership in the most populous states of the country.
•Facilities in Uttar Pradesh, Bihar, Rajasthan with an installed
refining capacity of 1400 TPD and an upcoming facility in West
Bengal with a capacity of 1200 TPD Commencing production in
•Available in all Indian states and 2 union territories through a
strong distribution network of over 30 depots, 12 sales points
and 1 lac plus touch points in India
•Jhoola, Payal, Joohi
Leading brands in Central, Northern and Eastern India
6. Company Overview
Listed on the Bombay Stock Exchange
since 1993 and National Stock
Trusted 2-decade relationship with
credible Palm and Soyabean oil
Revenues ( in USD’ Million)
EBIDTA ( in USD’ Million)
Owns the single largest
manufacturing unit for saturated fats
Revenues have been consistently
increasing in the last five years and
expected to reach USD 560 million in
PAT ( in USD’ Million)
ISO 9001-2008 certified
7. Milestones and Achievements
Acquired a seed
refining plant in
production with a
Installed a 60-TDP
unit for refined oil;
palmolein oil to the
Commissioned an edible
oil refinery/ Saturated
fats unit in Bihar.
production of a new
Started the export of deoiled cakes.
Received govt. approval
Ltd., Sri Lanka for for a multi-services SEZ
near Saranath/ Varanasi
in UP on 100 hectare
under the brand ‘Jhoola’.
Increased Saturated Emerged as the
chemical processing fats production
first edible oil
North & Central
commission a 3MW turbine.
Started work onListed in
the Haldia unit National
1000 MT per
day along with otton Farm
oleo-chemical of 5000 ha at
hectare of land expand up to
Formed a whollystates like
in Singapore under J&K, HP, MP,
the name of JVL
Overseas Pte. Ltd.
8. Addressing Wider Market Through an Intelligent
One of the leading
and Eastern India
power to sell all its
• Refined Palm Oil
• Refined Soybean
• Saturated fats
• Palmoline Vegetable
In India Palm, Soybean
constitutes 75% of total
edible oil consumption
• Mustard Oil
• Fatty Acid
From 200 ml to 1 litre to
Addressing the varied
needs of all income
JVL’s complete product mix helps in addressing different sections of consumers in different
parts of the country.
9. Cost Efficient Production Facilities
One of the lowest per ton
Single largest Saturated fats manufacturing unit
Reduced packaging cost
In-house facility for packaging material production
Reduced power cost
compared with the
prevailing grid tariff
A 3-MW captive plant in the Varanasi
facility, fulfilling most of unit’s power requirement
Better bargaining power
Northern and Central India’s largest crude oil
Informed decision making
Invested in ERP for transparency,
enhanced scalability and accuracy
Uninterrupted raw material
Trusted 2-decade relationship with suppliers
locally and internationally
Over 80% capacity
utilisation in Varanasi, Bihar
and Alwar units
Enhanced capacity utilisation
cost and better
10. Current Production Capacity
Saturated fats and Edible oil production capacity
UP and Bihar
UP and Bihar
Refined Palm Oil
Refined Soybean Oil
Mustard Seed Crushing
Packaging material production capacity
• 1,800,000 HDPE jars per annum
• 4,200,000 tins per annum
• Also manufactures the handles and caps required for the containers
Oil Production Capacity of 1,400 TPD (as on March 31, 2010)
TPA – Tonnes Per Annum; TPD – Tonnes Per Day
11. JVL’s presence in India
12. Edible Oil Sector Overview
Does India have enough edible oil?
Indian Edible Oil: Rising Demand-Supply gap
Domestic Production (LHS)
Demand - Supply Gap (RHS)
• Consumption has
been growing at 59% annually
production lags at
keep up with the
13. Palm Oil Positioning
Incremental demand to be met by Palm Oil
World Palm Oil Production 2011
Indian Edible Oil imports – Palm leads the
•Palm Oil easily available
• India is the world’s largest consumer of Palm oil
•Palm oil plantation is not dependent on the vagaries of
•Palm oil available from Malaysia and Indonesia, will
account for a large part of incremental import growth.
•So being a crop that gives fruits for 21 years, it does not
•Indonesia better option due to higher production .
have the volatility of production.
14. Palm Oil Business Cycle
India and Nigeria offer huge growth potential in Palm Oil space
(From consumption and Production Perspective)
JVL Agro Presence:
JVL Agro is expanding, set to become one of the largest
players and requires assured supplies of Palm Oil.
• Currently sourcing through traders in Singapore.
• Current import of Palm Oil: 500,000 TPA
• Requirement in coming years: 2,000,000 TPA
16. Way Forward
• Step 1
Start buying directly from Nigeria and / or Indonesia in
association with a local partner.
• Step 2
Setup a Refinery of 1000 TPD and packing facility in Nigeria
/ Indonesia at a suitable location preferably in Joint
• Step 3
Setup plantation and crushing mill in Nigeria and / or
Indonesia with 75 k hectare as cultivated land in the next 5
– 7 years preferably in Joint Venture (Public Private
Partnership –PPP Mode).
18. Perceived Key Growth Driver under developing scenario
Economic Growth : The per capita Income
Expanding Middle Class : Most Popular income sector to be touched
for vibrant share.
Rapid Urbanization : Incremental Migration rate breeding varied
Investment in Infrastructure : Mainly in power, telecommunication,
road, railways and oil pipelines.
Rising Brand Consciousness : Globalization is fascinating 60% of the
population is below the age of 30
have exposure to Western
19. Rationale for FDI in Retail
Catalysts to spur competition & innovation in retail industry.
Ensure highly efficient-low margin business model.
Improved product availability, quality & reduce wastages.
Consumers to get best products and services at reasonable price.
Back End & Supply Chain Improvement :
Inadequate storage facilities cause heavy losses to farmers.
25%-30% of F&V and 5%-7% of food grain in developing countries are wasted.
Availability, Accessibility and Affordability leading towards parity in consumption.
FDI in retail to bring investment, technology, management know how etc.
Food inflation and fluctuation in food prices can be controlled.
20. Rationale for FDI in Retail
Better Realization for Farmers :
Today, Intermediaries dominate the value chain.
Nigerian farmers realize only 1/6th of the total price paid by the final consumer
against 2/3rd by farmers in nations with a higher share of partial organized retail.
FDI to ensure better realization for farmers & producers.
Economic Growth :
Sourcing from India will increase. Exports to get significant boost.
Nigeria can also become a shopping destination for the world in Selected sector.
Expansion of stores and operations lead to employment generation .
Sectors like Agriculture, Textile and Handicraft will get a significant boost.
26. •Increase in consumer class.
Consumer class will grow
from 50 million at present to
583 million by 2025.
With more than 23 million
people taking their place
among the world’s
28. • Major challenge faced by Organized retail sector:
In Retail, over 70 per cent of the labor force in
both sectors combined (organized and unorganized)
is either illiterate or educated below the primary
• Labor Laws
29. • Investment into warehouse and cold storage chain will
result in significant efficiency on supply chain.
• Farmers benefited through direct marketing and contract
• Improves farm production through modern techniques.
• Increasing availability of low interest credit for farmers.
Over 2005-09Local production has seen a CAGR of only 0.2%.On the other hand, consumption has grown 6% annuallyResulting in a widening demand-production gap.India will continue to have an oil deficit as total demand in India doubles toabout ~30mn MT by 2020. However, driven by lower yields,agricultural production will continue to lag this demand growth.
technological know how, soil quality improvement, pesticide and fertilizer usage,grading, sorting, capabilities and increasing availability of low interest credit forfarmers.