BRAND MANAGEMENT

ASSIGNMENT

Submitted by
Jeevith raj s
MBA ‘B’
 MODI NATURALS

INTRODUCTION
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countries and territories world wide
HISTORY

ABOUT COMPANY
At Modi Naturals we believe that good health is at the center of happy living. We intend to
create natural products that assure a healthy way of life for all our consumers, so that they can
cherish every moment that life has to offer. The promise- healthy, naturally lies at the heart
of every decision we make.

Industries Consumer Goods

Company size 201-500 employees
Headquarters New Delhi
Type Public Company
Specialties Consumer Goods, Cooking Oils
ABOUT THE BRAND
PRODUCT
Modi Naturals have gained steady and firm ground in the fast-moving consumer goods
industry with its popular brands ‘Oleev’ and ‘Tarai’.
Modi Naturals is an ISO 9001:2008 certified Company and has obtained AGMARK &
HACCP certifications.
 Olive Oil - Oleev Extra Virgin Olive Oil, Oleev Extra Light Olive Oil, Oleev Pomace
Oil
 Health Oil - Oleev Active
 Tarai Shudh - Cooking Mustard Oil.
 Pipo - popcorn with several different flavours (Cheese Burst, Peri Peri, Desi Cocktail
and tomato)

DISCUSSION AND ANALYSIS

The Directors present their Forty-Fourth Annual report and Audited Financial Statements for
the year ended 31 March 2018.
1. FINANCIAL RESULTS
The financial results of the Company are elaborated in the Management Discussion and
Analysis Report.
The highlights of the Financial Results are as under: (Rs. in Lacs)
Modi Naturals planning to enter ready-to-cook food, snacks segments
Modi Naturals Limited, known for its edible oil brand Oleev, is in expansion mode. It is
planning to enter the ready-to-cook and ready-to-eat food product segments as well as into
the snacks category. It currently sells olive oil under the Oleev brand with a sales turnover
of ₹ 200 crore. The brand was launched in 2013.
“The idea was always to build a holistic fast moving consumer goods (FMCG) company,"
said Akshay Modi, director, Modi Naturals, a company based in Delhi. However, he decline
to share details on the product categories the company is exploring since it is still under
research.
The company launched Pipo, a popcorn brand last month, and aims to keep it in the indulgent
food space, yet healthy, by keeping it gluten-free. “Today, you cannot have taste without
health or health without taste. The two have to merge", said Modi. It plans to launch more
products under the Pipo brand in the packaged food category.
While Pipo will be distributed pan-India by August, Modi says new products will be
launched every quarter.
A year ago, Modi Naturals launched Olivana Wellness, a body oil brand in the health and
wellness space. Having built up distribution networks in the first five years, the company is
now expanding its geographical footprint. “It takes about 3-5 years to find your footing. Now
that the team is mature, we can take it to the next level," said Modi.
While it serves most cities and towns in the northern states, even those with a population as
less as 50,000, its distribution in the southern states is weak. It plans to recruit more sales
people to improve distribution in the south. It is also focusing on recruiting more people in
innovation and market research to understand what consumers want and new product lines to
expand into.
To increase brand visibility, the company will also advertise more, with its ad-budget
increasing 70% in the current fiscal, said Modi. Increasing sampling activity to convince
customers that its products are suitable for Indian cooking is also a priority. He plans to roll
out all these changes and build a product portfolio for each brand in the next 3-5 years. “From
a low base, we can grow faster, and I see no reason why we can’t keep growing 30-40% a
year," he said.
Modi Naturals to diversify into snacks segment, expects to be profitable in
FY19
The ₹278-crore, Delhi-based Modi Naturals, maker of the ‘Oleev’ brand of olive oil, is
expecting to be back in the black by this fiscal year on the back of diversification into the
snacking segment.
While the BSE-listed company reported a net loss of ₹40 lakh in FY18, the first quarter of
this fiscal year (April to June) saw it report a net profit of ₹40 lakh. According to Akshay
Modi, Executive Director, Modi Naturals, the import-duty hike last fiscal year hit growth in
the premium olive oil segment. However, with the situation stabilising, the company has seen
27 per cent volume growth in Q1 for ‘Oleev’.
Oleev remains the prime contributor for its consumer division business that includes ‘Olivana
Wellness’ and the recently launched ‘Pipo’ — ready-to-cook popcorn. The consumer division
accounts for a third of the company’s turnover.
“We intend to be back in black this fiscal. Most of our profits were reinvested towards brand
building. This apart there was import duty hikes that squeezed bottom-line. However, with
the consumer division breaking even, the focus will be on increasing the FMCG business in
the coming days,” he told BusinessLine.
Brand Segregation
According to Modi, the company will look to expand the scope of its consumer division
portfolio.
In May, it entered the ready-to-cook segment through the Pipo brand of popcorn. Available in
some 8-10 cities, the brand will be extended to have a national presence soon. Focus will be
on the snacking category through Pipo. ‘Oleev’ on the other hand will be focussing its
offerings around the health and wellness segment.
“We wanted to launch new products, but, were limited by our brand Oleev. So we went with
a different brand in the snacking and indulgence category,” he said.
According to Modi, the company will opt for an asset light model. It already has an integrated
oil refinery and packaging unit in Haryana. New additions will mostly be on a lease basis.
The company will set up a bottling unit in Hyderabad, Telangana for its olive oil business;
while a packaging unit at Sonepat, Haryana for its snacking unit.

Modi Naturals expects consumer division to contribute 65% to biz in 3 yrs

Modi Naturals, which sells Oleev Health oil brand, is looking to increase the share of
consumer division portfolio in its total revenue to about 65 per cent in the next 2-3 years. At
present, the consumer division -- comprising of mainly three brands Oleev, Pipo and
Olivana-- accounts for 35 per cent of the company's turnover and 65 per cent of turnover
comes from manufacturing business. "We are aiming for increasing share of our consumer
division to total turnover to 65 per cent in 2-3 years from 35 per cent at present. We will have
a multi-brand approach to reach this goal," Modi Naturals Executive Director Akshay Modi
told PTI. Modi Naturals had a turnover of Rs 300 crore in the previous fiscal. The company,
which recently piloted in select Indian cities its ready to cook brand Pipo for popcorns, is
rolling out the product which has 17 variants across the country. "We are also looking at
getting into ready-to-eat products as well. We plan to add more products under the Pipo
brand. Our aim is to launch new products every quarter," Modi said adding that the company
will remain in health and wellness space.
The company is also stepping up its distribution network, and is aiming to reach to about
1,00,000 outlets, from 50,000 at present, in the next 1-2 years, Modi said. Elaborating on
expansion plans, he said: "We will leverage these three consumer brands to get into adjacent
categories. Our launches in the next two years will be under these three brands.
REFERENCE:
https://en.wikipedia.org/wiki/Modi_Naturals
http://www.modinaturals.com/

https://www.goodreturns.in/company/modi-naturals/director-report.html

https://www.livemint.com/

https://www.thehindubusinessline.com/news/modi-naturals

https://www.business-standard.com/article/pti-stories/modi-naturals