Vegetable oils, or vegetable fats, are oils extracted from seeds, or less often, from other parts of fruits. Vegetable fats are mixtures of triglycerides. Soybean oil, grape seed oil, and cocoa butter are examples of fats from seeds.
Olive oil, palm oil, and rice bran oil are examples of fats from other parts of fruits. In common usage, vegetable oil may refer exclusively to vegetable fats which are liquid at room temperature. In the Northern hemisphere where there is an abundance of dry fruits viz walnut, apricot, almonds, the seed oil is extracted and used as a cooking medium. Vegetable oils are usually edible; non-edible oils derived mainly from petroleum are termed mineral oils.
As a vital ingredient, Edible oil is significantly enriched with vitamins and amino acids benefiting health. Some oils have flavours of their source like groundnut, sesame, olive, walnut, mustard, etc… Some are additionally flavoured like herbs, chilly and garlic, while some have pungent taste.
Cooking as an experimental hobby in covid times have also led to the use of a wide variety of cooking oil. Although it is easy to get carried away by the ready options available at the stores, it is not difficult to zero in on the type of cooking oil required for any culinary, based on factors such as smoke point, a combination of omega 3, fatty acids, taste, cholesterol levels, and much more.
Depending on the type of dish one is preparing, selection becomes easy to opt for the type of oil that would best suit the dish and palate. For example, mustard oil is ideal for frying and brings a unique taste to dishes. Refined oil and vegetable oil, on the other hand, are suitable for roasting and sautéing. Palm oil is another popular cooking oil that is often used for frying snacks such as samosa, jalebi, chips, etc….
Vegetable Oils & fats derived from plants’ seed, has attributed its demand to the Indian oil industry while people were quarantined at home during the outbreak of a world-effected pandemic.
One persona that has been behind the curtains controlling the strings of imports and distribution of edible oil throughout the country, took charge of the chaos in shortage of oil under timely control limits. Efficient in handling the Presidentship of IVPA, Sudhakar Rao Desai, a management graduate from IRMA has done a great deal in the oil industry.
With about 30 years of work experience in Dairy, Agribusiness, and Oilseeds industries, Desai is currently working as CEO of Emami Agrotech Ltd a prominent player in India.
Besides serving as the President of “Indian Vegetable oil Producers Association” (IVPA), he has also served as a Vice-Chairman of the Imports oil committee of The Solvent Extractors Association, and also Chairman of the ASSOCHAM eastern India and an active member in the CII Eastern zone Agri council. Presently positioned at Emami Agrotech Ltd as CEO, the passage has been an extraordinary journey both for Desai and the team in the company with rapid growth from the size of about Rs. 2,000 cr size to today’s Rs. 10,000 cr.
Recently, Desai has been re-elected unanimously for the second time as the President of Indian Vegetable oil Producers’ Association (IVPA).
Mithai & Namkeen Times magazine grabbed the opportunity to interview Sudhakar Rao Desai and not missing the chance, we went forth with our questionnaire:
Please communicate something about your career profile, your journey from Bunge to Emami, and now as a President of IVPA
It has been a fascinating journey from Bunge to Emami Agrotech Ltd and to be a part of the enterprising Emami group. I served as the Director/Vice president at Bunge India Pvt Ltd. At Bunge, the responsibility assigned to me was to set up the company in India. Added to that other tasks were resourcing, strategy for growth, acquisitions, sales, trading (domestic and international) risk management.
Joining Emami has been way forward with greater work deeds. In the last 7 years, Emami Agrotech has grown by 6 folds implementing a high level of development and a professional approach.
After going through the toughest phase of Covid times very efficaciously, my personal view is that we have built a company that is resilient with requisite speed and energy. Emami has flagship brands like ‘Healthy and Tasty’, ‘Himani Best Choice’, ‘Rasoi’ etc. To increase our product range, we have recently forayed into spices brands. We make Bakery fats, Fat powder and have been one of the biggest suppliers of biofuel to oil marketing companies and Indian Railways. Speaking about Indian Vegetable oil Producers’ Association has a legacy of 47 years as IVPA and currently in the last one year, we have been able to put together a cohesive and professional team with clear vision and aptitude to resolve the sector issues with a credible voice. We will continue to work seamlessly with other trade bodies and Government to deliver value with a professional focus on the issues. We would like to understand Government’s vision and align ourselves to the same becoming a credible voice addressing the right issues to find an equilibrium point for the industry, farmers and consumers in all policy matters.
It has been observed that the edible oil industry is passing through a phase of price volatility. What are your perception and opinion on it?
The edible oil industry is much beyond merely the speculative aspects. The central focus of the industry should be consumers and what value they would like from the essential goods like oils and other foods. There have been very few success stories in this industry and companies have not been making sufficient investments in innovation, product development, and branding. The edible oil industry is complacent with a small margin of 2-4 percent net profit in a risky environment and that should improve immensely.
Recent past India and Malaysia were on rough grounds over the trade of Palmolein oil. How will this tiff affect the overall edible oil scenario in India?
I don’t think this is an issue anymore as there have been normalcy restored with Indo-Malaysian trade. For a big buyer like India, it is necessary to have multiple options for the import of oils as a strategy to maintain a continued supply chain to meet the growing consumer demand in India. After onions and fuel, I think edible oils is one of the most sensitive consumer products in India in terms of price and income, and elasticity of demand.
Presently, India faces almost 50% shortage of edible oil consumption. What will be the course of action of IVPA in making India a self-sufficient nation under your flagship?
We have presented a plan of action for the mission of “Towards self- sufficiency”. The area of focus should be as follows:
1) The incentive to farmers for diverting crops from wheat/rice and sugar to oilseeds production.
2) Implementation of “Bhavantar” scheme for the support of prices throughout the seed marketing season.
3) Create infrastructure for Income support for the growth of oilseeds like Ground Nut, Sunflower, Oil palm, etc.
4) Technology mission for yield growth in the oilseed growing states with clear targets. We have to improve the domestic availability from the current 40 % to 60% percent of the total consumption in the next 10 years. Being the biggest customer in the global markets is a good start.
Of late, India has seen tremendous growth in sales in the by-products of edible oil such as bakery shortening, vegetable oil & fats for ice cream, and other bulk consumption in the snacks and namkeen industry. How are IVPA members looking at this opportunity?
Currently most companies are participating in the value-added bakery fats etc and the demand is growing along with the growth in this sector. Indian industry can very easily meet the demand. There is further a huge scope towards cattle feed fats, and with the right policy environment, we can also integrate into the manufacturing of clean and green, biofuels as is done in most edible oil manufacturing countries.
What will be your top priorities after re-resuming the Presidentship of IVPA?
IVPA vision is to promote sustainability, economic growth, and excellence in the edible oils and oilseed value chain in India. IVPA’s mission is “ To advocate and provide inputs for polices that increases stakeholders’ value and spur economic growth in the country through continued investments and innovation, ensuring the sustainability of supply chains to deliver safe and healthy products for the Indian consumers’.
We continue to focus on:
a) To create a level playing for the Indian industry to correct any policy anomalies
b) To provide the right inputs to the trade with a high value interactive platforms with the global industry experts
c) To understand the Government perspective and help develop a clear and simple plan of actions with mid-course corrections
d) Make the right assessment of the supply chain needs to maintain a price balance for the consumers
You have been re-elected as President of IVPA, what have been your achievements in this period of tenure?
We continue to strive in the same direction as described above. So far we have been able to put together a great team with a clear purpose. We have become a credible voice, bring clarity on industry issues making the right representations to all concerned ministries. We have been able to provide the right inputs on markets through media and webinars both on Indian and global platforms. One of our recent webinars was attended by over 800 participants from over 40 countries that show the global interest in the Indian market dynamics.
So far we have been able to develop a culture of inclusiveness at the association. We created a power full steering committee mostly of young minds, and also have a technical committee with all qualified industry people to take issues related to techno legal and product and regulatory framework related issues pertaining to quality, etc.
I thank all the industry stalwarts, Executive council members, Mr. Kamrah, our secretary-general of IVPA for all the support and confidence in IVPA.
But I see further a huge scope to contribute to the massive 1.4 lakh crore fascinating industry we have been working for. In concluding words Desai expressed, “My current interest is to share the experiences in leadership, people management, talent management, goal setting, efficiency and effectiveness, anticipation and strategy as what works and what does not, in the International business world with India on the center stage. The toughest challenge has always been to make it look simple”.
Mithai & Namkeen Times appreciates Sudhakar Rao Desai’s efforts and time given to our team from his busy schedule. We thank Desai and wish him the best for his re-elected Presidentship as IVPA.