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Fe Bureaus | Thursday, January 22, 2009 at 0034 hours IST

KS Oils to focus on retail growth

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Mumbai: K S Oils Ltd (KSOL) will continue its focus on retail led growth through modern retail and small retail formats.

The company's products are currently available in Big Bazaar, More, Spencers, Spinach, Reliance Fresh, Reliance Mart and Vishal Mega Mart outlets in Northern and Eastern India.

KSOL is a leading integrated edible oil FMCG company with product range constituting mustard and refined oils.

Kalash, the company's flagship brand, maintained its leadership market share in branded mustard oils segment.

"The company's plan for creating a strong distribution network is bearing results; in the quarter the company added 2 new C&F agents and 184 distributors.

Today it has strength of 31 C&F agents and 912 distributors in the states of North East, West Bengal, Bihar, Orissa, Jharkhand, UP, Uttaranchal, Delhi, Punjab & Haryana, Himachal Pradesh, J&K, Rajasthan and Madhya Pradesh," said Sanjay Agarwal, managing director, K S Oils.

Strong consumer demand in the domestic market and increased brand led retail sales helped the company register higher per unit profit and increased the overall profits.

With a bumper mustard crop harvest expected in the coming season, the company's leadership position as the largest capacity crusher of mustard seeds in the country will help in meeting the increased production capacity.

"Strong consumer demand for healthy oil is helping us grow on a steady basis. Retail led brand sales and increased geographic penetration in Central and Western India is helping us expand and grow our markets and increase profitability continuously. We are strengthening our flagship brand Kalash across India," he said.

With the Haldia acquisition, the company has seven manufacturing facilities located strategically across India to take benefit of procurement and logistics efficiencies.

The company has spent Rs 6 crore in advertising and brand building on a national basis during the quarter ended-December 2008. Coupled with a new packaging, advertising thrust and on ground promotion activities, Kalash is gaining acceptance as the first national brand in the mustard oil FMCG space.

Today, both Kalash and Double Sher are available in modern and small retail outlets across India.

Demand for palm oil is increasing across the world; in India, it is the highest consumed edible oil. The company is well positioned to benefit from this new consumer shift and demand for palm oil through its international procurement and backward integration strategy.

The company reported a profit after tax (PAT) of Rs 43.08 crore for the quarter ended December 31, 2008 as compared Rs 32.43 crore during the corresponding period of the previous financial year.