Marico to focus on Saffola, go slow on Sweekar

Marico Industries is realigning its edible oil business. As part of its strategy, the company will focus on its premium Saffola refined edible oil brand and will not invest in building its other brand Sweekar.

The company is also de-emphasing on Saffola Rafeal -Salgado olive oil, a product imported and distributed by oil major.

The Rs 776 crore company had tied up with Rafael-Salgado, Spain's leading olive oil producer, in the third quarter of FY02 to capitalise on the growing use of olive oil in urban areas.

Says Saugata Gupta, head-marketing of Marico Industries, "We have stopped importing and selling the olive oil brand in the market.

There were a couple of issues that acted as a deterrent for the growth of the brand ""price, smell and the product usage, as olive oil is mainly used for skin."

Saffola Rafeal-Salgado Olive Oil is priced in the range of Rs 85 for a 200ml tin to Rs 380 for a one litre bottle.

On the Sweekar brand, Harsh Mariwala, chairman & managing director, said, "We will not invest in the Sweekar brand because the segment at which the brand is positioned is very competitive.

However, that does not mean we will phase out the brand. "

The company yesterday launched Saffola Gold, a blend of ricebran oil and kardi oil under the Saffola franchise. "The formulation of saffola gold has been researched in Japan and is proven to be more effective in reducing cholesterol than other widely used edible oils,"Mariwala said.

Saffola gold is priced at Rs 89 for a 1 litre pouch. The other Saffola brands are Kardi oil, Tasty Blend and salt.

According to AC Nielsen retail audit, Marico Industries has a market share of 7 per cent (1,638 metric tonne) for January 2004.

The edible oil category is dominated by Adani Wilmar with a share of 19 per cent, followed by Agrotech Foods 12 per cent.