“The organisation is transforming into a multi-brand FMCG company in the F & B space”

Akshay Modi, Joint Managing Director, Modi Naturals Ltd

The edible oil market in India is estimated to display revenue and volume growth at a CAGR of 16.80 per cent and 3.92 per cent, respectively. Shifting dietary preferences and increased penetration of processed goods have been some of the main driving forces for this growth. Customers are inclined towards premium edible oils as they become more health conscious. Additionally, the demand for value-added edible oils like rice bran oil, canola oil, and olive oil has soared. New Delhi-based Modi Naturals Ltd, one of the leading players of the edible oil industry in India has been actively exploring this market.  Modi Natural’s Oleev is among the top two brands in the olive pomace oil category and is the third-largest super premium edible oil brand in India. The brand is the only one in India to offer a multi-source oil variant with the goodness of olive oil while being the largest importer of olive oil, which makes Modi Naturals stand out from its competitors. nuFFOODS Spectrum interacted with Akshay Modi, Jt. Managing Director, Modi Naturals Ltd, to find out more about the edible oil business and the company’s future plans in terms of FMCG business. 

Edited excerpts:

What is the current status of the pomace oil market in India?

Olive Pomace oil has been a growing category in India in the last decade. Among all the various grades of olive oil in India, olive pomace oil is the largest-selling olive oil, with almost 60% share among the various forms such as extra-virgin, extra-light, etc.

What do you think are the roadblocks in this category?

Consumer awareness about the various grades of olive oil is the biggest category roadblock. The lack of clarity among the different kinds of olive oil and their proper usage. Olive pomace oil – derived from the pulp of olives, with its high-smoke point, is suitable for all types of cooking, especially deep-frying, and all Indian cooking. Whereas extra-light is suitable for sauteing and shallow-frying and extra-virgin is particularly used for garnishing and dressing.

This half information or misinformation about various grades of olive oil and their usage has led to a lot of myths and wrong info doing rounds where people consider olive pomace oil not suitable for Indian cooking. However, the truth is that olive pomace oil contains 80 per cent monounsaturated fat which can potentially lower cholesterol levels. It is also rich in antioxidants that promote heart health and prevents many lifestyle diseases making it a healthy alternative to many regular edible oils. Olive pomace oil has a fairly neutral taste. It will not change the flavour of the dish just like other neutral-flavoured oils, making it perfect for everyday Indian cooking. 

How does Modi Natural ensure the quality and authenticity of its olive pomace oil?

Modi Naturals has been the oil manufacturer for the last 45+ years, with an in-house lab and R&D centre. Olive pomace oil by Modi Naturals Ltd. is made from the finest olive oils sourced from Spain, Italy, and other Mediterranean countries, which ensures the absolute authenticity of the product. While the sourcing is done from the Mediterranean region, the refining, fortification, and packaging take place in Modi Naturals’ own facility. In-house refining & packaging ensures the utmost quality control for olive pomace oil.

Since, Modi Naturals has the refining and packaging facility of olive oil in India, the product that reaches the shelf of the retailer or the consumers is much more freshly packed as compared to other imported olive oil brands.

Additionally, Modi Naturals Ltd. is an ISO & HACCP certified company, ensuring the highest standards of quality assurance.

How is the company transforming into a multi-brand FMCG company?

Modi Naturals Ltd is a homegrown FMCG company, which has a strong presence in the edible oil space. Our Flagship brand ‘Oleev’ comprises multisource edible oil (Oleev Active) and pure range olive oil products like Pomace olive oil, Extra light olive oil, and Extra virgin olive oil.

However, in the last few years, the organisation is transforming into a multi-brand FMCG company in the F & B space. In 2018, The company forayed into the packaged food business and has brands like PIPO (Instant Popcorn, Roasted Peanuts), Oleev Kitchen (Peanut Butter, Pasta), Olivana Wellness (Multipurpose Pure Olive Oil), and JYNX (Iced Tea, Mojito).

What was the FY 2022 revenue of the company? 

Modi Naturals is a publicly listed company. The company’s turnover in the fiscal year of 2022-23 was Rs 419 crore.

How does Modi Naturals incorporate olive pomace oil into their product portfolio and what offerings do they have in the wellness and food segments using this ingredient?

Olive Pomace Oil is part of our pure olive oil portfolio (other than Extra Virgin olive oil and Extra Light Olive Oil). It is our highest-selling pure olive oil SKU and the second-best cooking oil in our portfolio.

Other than edible oil, Modi Naturals also operates in other product categories like pasta, peanut butter, popcorn, roasted peanuts, drink mixes, etc through brands like Olive-Kitchen, PIPO, and JYNX.

What recent research and development initiatives have Modi Naturals undertaken to enhance the utilisation and benefits of olive pomace oil in their product offerings? 

Olive Pomace oil is rich in antioxidants and vitamins E & K which makes it one of the best cooking oils. Oleev’s olive Pomace oil was the first Olive Pomace oil fortified with Vitamin A, D. Processed with an extremely high-quality refining technique, high-smoke point, and antioxidants make it suitable and stable while frying. Oleev Pomace Oil has a neutral flavour and is the perfect choice for all types of cooking.  

What is the international market presence of Modi Naturals with regard to olive pomace oil?

We are expanding our international presence. Right now, we are present in Nepal and Bhutan and have plans to expand into a few more South-Asian countries.

Are there any plans to expand the product line or introduce new variants within the Modi Natural category of edible oil, healthy foods, snacks, etc?

Yes, we are expanding our product portfolio under our brands Oleev Kitchen, PIPO, and JYNX. Under Oleev Kitchen we would be launching multigrain pasta, a first-of-its-kind pasta made with the goodness of 4 grains. We are also expanding our portfolio with the launch of spaghetti pasta. PIPO and JYNX also see have plans to launch new products in the snacks and instant drink mix categories respectively

Mansi Jamsudkar

mansi.jamsudkar@mmactiv.com