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Revolutionising Indian kitchens: The growing appetite for ‘oils of the future’ attracts LDC



Global agribusiness major Louis Dreyfus Company (LDC) is making significant strides in the Indian market. The Netherlands-based company, known for its diversified activities across the agricultural value chain, is now focusing on introducing “oils of the future” in the country.

Explaining the move, Sumeet Mittal, LDC’s Country CEO, says there is a rising demand for healthy and nutritious diet options. “India’s dependence on imported vegetable oils, with about 65% of consumption met through imports, also presents a significant market opportunity. As a leading global merchant and processor of agricultural goods, LDC brings strong expertise in sourcing commodities for edible oil production, addressing surging demand for healthy and nutritious diet options, and hence the plan sits well with the company’s broader goal.”

When asked about the specific oil varieties or blends they plan to introduce, Mittal mentions the reintroduction of Vibhor, LDC’s first B2C edible oil brand, to provide health-conscious consumers with high-quality cooking oils that are enriched with essential vitamins and offer a lighter texture. This is part of the LDC’s strategy to diversify revenue through multiple value-added products and move further downstream.

The refreshed product line under Vibhor includes soybean oil, palmolein oil, cottonseed oil, mustard oil and premium vanaspati, which the company says are fortified with essential vitamins.

A key player in India’s agricultural sector, LDC is one of the top 3 grain merchandisers and a leading processor of agricultural goods. LDC India, founded in 1997, has seen strong activity in multiple segments with over 70 domestic procurement locations.

India is a focal point for the Rotterdam-based MNC’s South Asia operations, according to Mittal. “We procure a variety of grains from domestic and international markets, supplying them to millers and feed manufacturers in India for the production of food and animal feed. We are active in origination, refining, processing and trading of edible oils, serving the needs of major companies across India’s food manufacturing sector. We operate an oil refinery in Kandla with an annual processing capacity of 350,000 tonnes, and maintain presence through the sale of packaged edible oil marketed under our brand, Vibhor.” LDC aims to capture a substantial share of this market by expanding its retail outlets and introducing new product categories. It also wants to double the number of outlets by 2026.
Tackling El Niño

According to Mittal, India faces a challenge in increasing production to feed its growing population, and this is compounded by various issues, including climate-related concerns.

El Niño, a climate phenomenon, can significantly disrupt global weather patterns and affect agricultural production worldwide. Mittal says this affects agriculture in India by weakening the Southwest Monsoon, which accounts for about 70% of the country’s total rainfall. This disruption affects major crops such as rice, cereal grains, sugar and cotton.

LDC is focused on ensuring “secure, reliable and responsible movement” of essential supply chains. “We believe we can play a vital role by supporting farmers in adopting more sustainable practices, such as in regenerative agriculture and farmer empowerment. We are providing training to over 6,500 farmers in Maharashtra on regenerative agriculture practices, as we aim to produce 20,000 ‘regenagri certified’ bales,” he says.

Regenagri is a global programme focused on regenerative agriculture to protect the land’s health and improve the well-being of its inhabitants.

To tackle the ill-effects of climate change on its supply chains, LDC is also collaborating with farmers in various parts of the country. In Gujarat, Mittal says LDC supports 6,000 small and marginal farmers through sustainable income enhancement and nutrition security, which has resulted in a 20-25% increase in crop productivity and a 20% increase in livestock productivity (milk).

Based on its experience as the world’s leading merchant and processor of agricultural goods that operates across the entire value chain, LDC says in India, where the agri sector continues to be pivotal to its economy, strategies like demand forecasting, value chain integration and crop diversification can help the nation meet evolving consumer preferences and market’s growing demands.

As of July 2024, the agriculture sector in India contributed 18.2% to the country’s GDP.

According to Mittal, the country has the opportunity to gain insights from the successful agricultural growth models in other nations, focusing on technology-driven supply chains and sustainable practices. This includes embracing technologies with the potential to drive efficiencies at farm level and across supply chains, as well as adopting sustainable practices like precision farming and regenerative agriculture to help increase yields while preserving soils and natural ecosystems.

Collaboration among government, private sector and research institutions facilitates knowledge transfer, innovation and effective implementation of best practices. By leveraging global expertise and adopting proven strategies, India can further strengthen its agricultural sector, enhance market access and drive sustainable growth, he adds.



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