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For Madhukar Kamath, chief executive officer and managing director, DDB Mudra Group, the Independence Day of 1988, that marked Dhara's launch on national television, is special. It was one of the first brands he was associated with at DDB (then called Mudra). Dhara was born out of the Operation Golden Flow, a programme that brought small-scale oil-seed farmers and the National Dairy Development Board (NDDB), together in produce collection, processing and packaging. The brand is trying to come back from oblivion with plans of new products and a new edition of its last campaign.
Operation Golden Flow attempted to replicate for oil seeds what Operation Flood had done to milk a decade earlier - make India self-reliant in production of the commodity. Dhara grew to be the largest edible oil brand through the 1990s but rapidly declined when imports were permitted in 1998. What remained constant was the association of the brand, celebrating its silver jubilee, with DDB.
Dhara is now looking to stage a comeback in the edible oil market, pegged at nearly 17 million metric-tonne in India. Mother Dairy Fruit & Vegetable (MDFVL), which now manages Dhara after the two were merged a few years ago (by NDDB), launched a new ad campaign - 'India Ka Tadka'(in 2012) - after staying off-air for six years. Company executives admit the brand languished during this period as rivals such as Saffola from Marico, Sundrop from Agro Tech Foods and Fortune from Adani Wilmar increased their share of voice to grow consumption of branded edible oil.
India remains among the top five consumers of edible oil in the world, with imports accounting for over 50 per cent of domestic consumption. The branded edible oil segment accounts for 45 per cent of the overall market.
Changing taglines
Those who have known Dhara through the years will recall the famous launch campaign, which went: 'Dhara, Dhara, Shuddh Dhara'. For a country accustomed to consumption of loose oil (packaged oil had a minuscule presence at that time), the emphasis on purity was enough to convince buyers to make the switch from unbranded to branded. That Dhara was the first to come out with tamper-proof packs only added to its appeal, explains Siva Nagarajan, managing director, MDFVL.
By the time the popular 'Jalebeee' commercial, featuring a little boy, who leaves home only to be lured back with the promise of his favourite sweet, hit TV screens, Dhara was a national brand. This was the early 1990s. Over the years, Dhara continued to tug at hearts with its warm stories and emphasis on purity and health ('My daddy strongest').
The 'India Ka Tadka' campaign marked a break from the past. The theme shifted from purity to responsible consumption - something Dhara has consciously cultivated through the years.
"We've had statutory messages on our packs speaking of the need to consume cooking oil in moderation besides labels that promote healthy habits such as consumption of different edible oils," says Nagarajan.
A new set of commercials under the India Ka Tadka campaign will soon be launched, Nagarajan says. He says that the company has streamlined sourcing and distribution of Dhara and is now focusing on launching new variants of the product to tap new consumers.
In the last few years, Dhara, whose revenue is nearly Rs 800 crore, has steadily added stores at the rate of about 15 to 20 per cent per annum. Amit Taneja, head of marketing, MDFVL, says that Dhara now reaches nearly 200,000 outlets directly and indirectly across 384 towns. Variants include eight refined and filtered oils such as groundnut, mustard, sunflower, cottonseed, soyabean and ricebran.
Road to recovery
Unlike the 1980s and 1990s, the branded edible oil market has evolved with national and regional players dotting the landscape today. The top national players include Adani Wilmar, Ruchi Soya and Cargill, who have deep pockets and have beefed up their portfolios in the last few years through both organic and inorganic routes.
The US-based Cargill, for instance, wrapped up three acquisitions between 2010 and 2012 of brands such as Rath, Sweekar and Wipro Sunflower even as it ramped up distribution and marketing of its products.
Companies such as Adani Wilmar and Ruchi Soya, on the other hand, are rapidly increasing their crushing and refining capacities to keep up with the demand for branded products. According to industry experts, branded or packaged edible oil is growing at 15 per cent per annum, three times the rate of overall edible oil consumption.
Industry sources say Dhara does not play in the palm oil segment, the largest of edible oil categories in the country, making it tough for it to compete with the big boys. Nagarajan does not indicate if the company intends to take Dhara into palm oil, a fiercely competitive segment and heavily dependent on imports. The company, however, has stepped into emerging areas such as ricebran and cottonseed oils in the last year-and-a-half in its quest for growth.
