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By

MRV Rakesh

Pratheek Reddy

Rishika SinghDivya

UKR Prasanth

MAHESH EDIBLE OIL

INDUSTRIES LIMITED

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Set up by Ram Babu Rathour in the early 1960s

Door-to-door selling of loose mustard oil.

Diversified into mustard seeds, pulses, wheat and cereals

Purchased mustard seeds from farmers in Shamsabad andsold to mills in Delhi, Kanpur, Haryana and West Bengal

Ram Babu accompanied the truck for delivery to eliminatetransit costs and collect payments

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SHIV KUMAR : Was a visionary, optimistic, extrovert and a drivingforce

Joined Business in 1977. First hand experience in procurement ,warehouse and value addition

Brij Mohan: Introvert, Pessimist and highly analytical

Dinesh: Reserved, very ambitious, confused, dominating

Mahesh: Reserved, calculative and a motivator

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Company bought 40,000 sq. m. land outside Shamsabad

Setting up of own plant : Procuring RM, Converting and Selling

Eliminating Middlemen : Higher profits

A great achievement: The four brothers together constructed theapproach road to their newly bought land

Be totally fair to the stakeholders

Develop a community of customers as well as employees

Deliver the expected value to the customers and in turn deliver value tothe organization

Build an organization that enjoys freedom on all parameters

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Finance

Sales

100% quality check.

Cleared UPFC loan by 1993. Reinvestment of profit into thebusiness

Marketing unbranded looseoil Rotate capital very fast Oil was sold through abroker. Turnover of Rs 2.90 lakh by

1991.

Procurement

Supply of mustard seed to plant Lowest procurement price Addvalue

Truck laden with oil had meet withan accident Sold consignment in Kolkata Establishing its own channel Sales in kolkata immediatelywitnessed a 100% growth

Marketing

Startegy

Brand name - Saloni Initially in 15 lts tinsPenetration in kolkata

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Took loan of Rs 16

Lakh

at interest of 19% for setting new company

Ingenious Plan for efficiency

Family involvement in business

With a installed capacity of 1,25,000 liters per day.

No boundaries were constructed to the plot to avoid deadinvestment

The plan had brick floor to lower the costShiva himself being a mobile office

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Market segmentation 1 ltr consumer pack( buying needs)

Targeted to lower segment and positioned as premium quality oil

Govt. ban on sales of mustard and unpacked oil due to outbreak ofepidemic Dropsy

MEOIL Tapped the vacuum created by passing quality test.

MEOIL sold directly to retailers through its van salesman.

Two major area of concern Production and Packaging

Production oriented scheme and streamline the production process

Ban on entry of suppliers to the factory

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Mile stone Rs 100 Crores turnover

Vision Rs 1000 Crores by 2010Deep thought & next course of action in order to achieve the dream

Achievable or not?

SHIV

Back bidding, Total backward integration, Contract farming

Procurement of 10 times more raw material timely delivery & least cost

BRIJ

Possible processes complete financial discipline, without effecting sales

Money was not misappropriated

DINESH

Increase market share / man power, company owned oil vending outlets

Central sales depot & exports, Organization to handle Rs 1000 crores

sales

Achieve in existing territory / go national

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MNCs approach 2005 Jan 1st week

MAHESH

Innovations at the plant

Expansion at same site / another plant at mustard growing area / high

consumption market

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All the four brothers were distinct yet were able to carry forward their

own family business.

Ability to compare and analyze all the possibilities

Political rapport

TRAITSRisk TakingOpportunity finding

Visionary

Performance Oriented

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