Best Wishes From
-U. Bharath (bharath@imaws.org)
Aiming to tap into new customers, Idhayam oil, a top brand in cooking oils has launched its new scheme which is available with the growing number of grocery shops and outlets across Tamil Nadu. This scheme is targeted at families with a minimum grocery budget of Rs.500 to Rs. 2,500 and includes a “buy- one-get-one free” offer for its brand of Idhayam cooking oils.
As per the novel scheme, a customer who buys groceries for a minimum value of Rs.500 inclusive of Idhayam sesame oil (500 ml) will get a Mantra groundnut oil (500 ml packet) free. The families who shop more are to benefit more. A family that shops for Rs.1000 (including one litre of Idhayam sesame oil) will get the mantra oil (two 500 litre packets) free, and those who shop for Rs. 2,500 will get 5 500 ml packets of Mantra oil entirely free.
According to V.R. Muthu, the company’s CEO, “ This scheme is to celebrate our old and new customers”. The cooking oil brand already has a whopping 12 lakh customer base across the globe, including countries where the Tamil diaspora has a vast presence. From Canada in the West to New Zealand, in the East, the oil brand has reached every country including the USA, UK, and Arab countries. Their 300-crore state-of-the-art plant in Virudhunagar is equipped with the latest quality control and automated systems for oil production. From its inception in 1986, the brand has carved a niche for itself on the global stage.
Kitchen Herald interviewed V. R. Muthu, the ingenious CEO of Idhayam group, and the excerpts from the chat are given below.
Kitchen Herald: What quality control systems and processes are in place to ensure product consistency and safety?
V.R. Muthu: Idhayam oil is synonymous with “healthy cooking” in households in India and worldwide, only because we have adopted the latest technologies including quality control systems to emerge and stay ahead as a winning brand, among cooking oil brands
We have installed the latest and best-ever “Buhler” purifying system in our plant. Impurities like small stones, dust and wastes including immature seeds, and dry leaves are removed and processed at the initial stage itself before the hydraulic pressing is done.
Even while procuring the raw material, we ensure that only the best products reach our plant. We procure only the best quality raw materials and only 30% of what is offered in the marketplace passes the grades of rigorous quality control system.
Yes, our quality control mechanism is robust, and we don’t hesitate to return the bags if it did not meet our quality benchmark norms. If, prices for bags with minor anomalies are deducted, for a seller who gives premium quality, we are ready to pay more. Such ethical practices have, indeed, made us the top brand in cooking oils.
Kitchen Herald: What materials are used in your packaging, and how do they ensure product integrity?
V.R. Muthu: We only use High-Density Polyethylene (HDPE) containers as our packing material. These types of containers have high microns and are recyclable and they cause less harm to the brittle environment. Also, Multi-layer film packing is done for sachets and pouches, which is tamper-proof ensures product quality, and also gives a long shelf-life.
Corrugated boxes are used for shipping and storage, and we follow a fool-proof system at every step of our manufacturing, packaging and distribution system. We are also paying for the collection and recycling of our HDPE containers with the help of government-recommended agencies that are engaged in the recycling process. In future, we may shift to biodegradable containers when it is widely available in the market.
Kitchen Herald: How scalable are your operations to accommodate increased demand or new product lines?
V.R. Muthu: We are operating at the optimal level and sometimes only 60% of installed capacity is used due to fluctuating market demands. As we have a presence across the globe from Canada to New Zealand. We could easily scale up our operations to meet the demand-supply gap, as our current plant is thoroughly equipped to meet the ever-rising demand for our products.
When it comes to marketing our popular brand, a good 80% of supplies are marketed in Tamil Nadu, the rest of it is sold in the rest of India and overseas marketplaces. We have a good market share in North Indian states including Gujarat and Rajasthan for our cooking oils. Notably, the spread of Tamil diaspora across the globe has led us to enter new markets and territories in the last decade, which were not possible in the past. Presently, we have a turnover of Rs.800 crores per month.
Our products always aim and reach quality customers, who are known for their brand loyalty and they constitute a good 20% of total consumers. As we don’t compromise on quality standards the periodical price rise is unavoidable.
Kitchen Herald: What marketing strategies have you adopted to reach your growing consumer base?
V.R. Muthu: We have a publicity wing and allocate an annual budget for our advertisement campaigns. Celebrity endorsement of our products is also carried out to enhance the reach of our products through TV ads.
Actor Jyothika featured in one such ad promotion which was a huge hit with the customers. One slogan “This is a decision to be made only by womenfolk” won the hearts of many women across the board
Kitchen Herald: What is the secret formula for the phenomenal success of your brand in the crowded marketplace for cooking oils?
Our manufacturing processes and business practices are transparent and tied to ethical values, and benchmark norms, which are fine-tuned over the last eight decades.
That’s why Idhayam Sesame oil is the top cooking oil brand in India.
Kitchen Herald: Do you engage in any outreach activities to popularize your innovations in oil manufacturing?
V.R. Muthu: Our plant is visited by a stream of visitors every day from the ranks of the business community, chamber of commerce and catering students just to familiarize themselves with our best practices.
I always have an interactive session with those visiting groups numbering about 50 to 100 every day and share my industry knowledge and inspire them to become entrepreneurs. This gesture might help them to enrich their knowledge base and enhance their business knowledge and skills.
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