With a turnover of more than Rs 2,000 crore in 2007-08 and a market cap in
excess of Rs 1,800 crore, Morena-based KS Oils is a leading player in the
country's edible oil industry.
[image: KS Oils Agarwal: Cashing in on its brands]KS Oils Agarwal: Cashing
in on its brands
With a market share of 7 per cent in the overall mustard oil industry
(valued at Rs 12,000 crore), the company controls a fourth of the organised
mustard oil market in India.
However, the organised market itself accounts for just 15 per cent of
overall mustard oil sales in the country. Little wonder, then, KS Oils has
been aggressively pushing its branded products and is reaping rich rewards.
In its recently-declared first quarter results, revenues leapfrogged by 90
per cent to touch Rs 696 crore and net profit soared 75 per cent to touch Rs
41 crore y-o-y. "Our surge in revenues is largely due to our FMCG-led retail
sales focus," says Sanjay Agarwal, MD, KS Oils.
Spencers and More outlets in certain cities in eastern India ," he adds. The
company plans to reach out through other organised retail outlets in rest of
the country. It has also launched its first television commercials in
certain parts of the country. "We have allocated a budget of Rs 10 crore for
advertising and marketing spends," says Agarwal.
Analysts who track the company say that KS Oils' transparency and
willingness to reach out to shareholders makes it a great company to follow.
"As an analyst, it's a great company to work with. You call them late in the
night and they are ready to talk numbers. It's a fundamentally sound mid-cap
company," says Girish Solanki, an analyst with Angel Broking who tracks the
company. The company's snazzy website is proof enough.
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