Profit margins draw edible oil makers to the premium segment

Premium oils category margins are around 25%, compared with 10% for conventional oils

Edible oil companies Adani Wilmar, Vimal Oil & Foods and Cargill India are betting on premium variants like olive, rice bran and canola for better returns. Jayesh Patel, managing director of Vimal Oil, said, “Lucrative margins are attracting edible oil producers to jump in to the premium segment. As against 5-10 per cent profit margins in regular edible oil, the premium segment is giving 20-25 per cent profit. However, the market is limited to the upper class and higher middle class.”

India’s import of premium edible oils in the past two years has increased sharply, with rise in consumption. According to