### **Overview** Raj Oil Mills Limited (ROML), established in **1943**, is a legacy player in India’s edible oil industry with over **80 years of market presence**. Headquartered in Mumbai and operating from a manufacturing facility in Palghar, Maharashtra, ROML specializes in the **filtration, processing, and marketing of refined and filtered edible oils**, including groundnut, coconut, mustard, sesame (til), sunflower, rice bran, and cottonseed oils. The company is undergoing strategic revitalization under new promoter leadership and has returned to **profitable growth** following corporate restructuring. ROML operates under trusted regional brands such as **Guinea, Cocoraj, Tilraj, Mustraj, Divya Shakti**, and **Khilona**, known for purity, traditional taste, and quality. --- ### **Business Model & Strategic Focus (Sep 2025)** ROML is transforming into a more **agile, customer-centric, and innovation-driven** business within the edible oil and food processing sector. Its growth strategy focuses on: - Expanding **India-wide footprint** through diversified offerings and enhanced distribution. - Investing in **quality, operational efficiency, and brand development**. - Strengthening presence in **urban and semi-urban markets** via trusted brands. - Growing in **value-added and healthier edible oil variants**, aligning with evolving consumer trends. - Scaling a **direct distribution network** to improve last-mile availability, especially in under-penetrated regions. - Implementing **targeted marketing campaigns** to boost brand visibility and consumer engagement. --- ### **Product Portfolio & Innovation** ROML offers a **wide range of edible oils** across multiple categories: #### **Core Brands & Products:** - **Guinea**: Flagship brand for groundnut oil (filtered and refined), also extended to soya chunks, ghee, spices, and new refined oil blends. - **Cocoraj**: Coconut oil brand with a dedicated hair care line — *Cocoraj Roots*. - **Tilraj & Mustraj**: Specialized sesame (til) and mustard oil brands. - **Divya Shakti**: Premium ghee for religious and Pooja purposes. - **Khilona**: Mass-market mustard oil targeting **Tier-II and Tier-III cities**. - **TILYUKT**: Upcoming sesame oil brand to tap into regional demand. #### **New Product Launches (2023–2025):** 1. **Cold Pressed Groundnut Oil (Launched Sep 2025)** - Extracted using traditional wooden press; no heat or chemicals. - Targets health-conscious consumers; strong potential on **e-commerce** and in **urban markets**. - Positioned as a **key future growth driver** due to premium margins and rising demand for natural oils. 2. **Guinea Pro-Active (Launched Feb 2023)** - Six **blended vegetable oil variants** with heart and digestive health benefits. - Compliant with FSSAI norms (min. 20% blend by weight). - Distributed through modern trade, kirana stores, and health-focused e-commerce channels. 3. **Guinea Soya Chunks (Launched Feb 2023)** - Leverages soybean refining by-product; available in 45g and 225g SKUs. - Taps into demand for **high-protein, vegetarian, and plant-based alternatives**. - Distributed through existing edible oil retail channels. 4. **Cocoraj Roots Hair Care Line (Launched Feb 2023)** - Coconut oil-based products with variants like Amla, Jasmine, Aloe Vera, and Onion. - Manufactured via third-party private labels; distributed via beauty outlets, chemists, and e-commerce. 5. **Guinea Masala (Planned)** - Range of plain and blended spices to leverage **existing distribution network**. - Targets both **premium and mass segments**. 6. **Guinea Ghee (Planned)** - Premium ghee under **Divya Shakti** brand for **religious and lamp use**, expanding ritual oil segment. 7. **New Refinements (Feb 2023)** - Addition of **Cottonseed Lite Refined Oil** and **Soya Bean Lite Refined Oil** under the *Guinea* brand. 8. **TILYUKT Brand (Sep 2023)** - Planned entry into **sesame oil segment** to capture traditional market demand. --- ### **Distribution & Channel Strategy** ROML employs a **multi-channel distribution model**: - **General Trade (GT)**: Core channel; serves **kirana stores and regional wholesalers** across urban and semi-urban India. - **Modern Trade (MT)**: Partnerships with major retail chains to enhance **brand visibility and shelf presence**. - **E-Commerce**: Active on **Amazon, Flipkart, Dmart, Blinkit, Swiggy Instamart, Dunzo**, and others. - Recorded **26% MoM growth (Apr 2020–Apr 2021)** in online edible oil sales. - Investing in **D2C (Direct-to-Consumer)** via own websites to bypass third-party fees. - **Institutional (B2B)**: Supplies **bulk oils to HoReCa** (Hotels, Restaurants, Caterers). - **Q-commerce & Rapid Delivery**: Accelerated growth through partnerships with **Blinkit, Instamart, Dunzo**. #### **Distribution Network (as of Sep 2022):** - 132 distributors - 66 super stockists - 1 branch office - 2 depots - Actively expanding into underserved regions. --- ### **Operations & Supply Chain** - **Manufacturing Unit**: Located in Palghar, Maharashtra (32,187 sqm). - Facility equipped with **DG power backup** and **groundwater access**. - **Currently non-operational for crushing/refining**, but management plans to **restart operations soon**. - Currently sources **pre-refined oils**, conducts **in-house filtration**, and packages for distribution. - **Raw Material Sourcing**: Procures copra, mustard, groundnut, sesame, sunflower, and cottonseed oils across India. - **No long-term contracts**; vulnerable to **price volatility and supply disruptions**. - Seasonal fluctuations affect quality and supply consistency. - **Logistics**: Finished goods transported via **third-party logistics (road)**; raw oils delivered directly by suppliers. - **IT Systems**: Uses **Tally ERP** for integrated operations, sales tracking, vendor payments, and receivables. - **mSell app** (since 2020) provides real-time sales and field force productivity data. --- ### **Marketing & Branding Initiatives** - **Omni-channel Approach**: Integration of **physical retail, e-commerce, mobile apps, and social media**. - **Ad Campaigns (2023)**: - **Tilraj**: TV ads on GEC and news channels in **Odisha**; digital campaigns in Odisha and Mumbai; videos in **Oriya and Hindi** on YouTube. - **Cocoraj**: Promotional campaign in Western & Central India (Vidarbha, Goa, MP, Odisha, Mumbai) offering **free soap with purchase**; multi-platform digital ads. - **Guinea**: **Bus branding in Mumbai & Thane**; consumer promotions (e.g., **free container sets** with 5L/16L oils). - **Upcoming Campaigns**: Planning TV commercials for **Guinea Filtered Oil, Guinea Lite, MustRaj, Divya Shakti**. - **Brand Equity**: 'Guinea' has been recognized as **one of India's most trusted edible oil brands** (75+ years). --- ### **Financial & Customer Risk Factors** - **Customer Concentration**: Top 10 customers accounted for **52.49% of FY22 revenue**. - **No long-term buyer contracts** with distributors or retailers—revenue is subject to changing shelf access and buying patterns. - Vulnerable to **raw material price volatility** and **supply chain disruptions**. --- ### **Leadership & Governance** - **Mr. Tabrez Shaikh** (Whole-Time Director): - Civil engineer and veteran of the construction sector. - Led **Rubberwala Housing & Infrastructure** for over 20 years before acquiring ROML. - Spearheading strategic rejuvenation of ROML with focus on growth and efficiency. - **Annual remuneration: ₹32.4 lakh** (FY2023–FY2025).