‘Idhayam‘, after 90 years in the business of producing oil, has decided to strengthen its institutional sale segment. The company has a well-structured traditional (B2C) sale route and has also started an online sales market.
“We wanted to try this route of sale and build a bright future for our company. Currently, institutional sales contribute to a very insignificant amount in our total sales. We still mainly rely on traditional sales,” said V R Muthu, Chairman, V.V.V & Sons Edible Oils, company that owns Idhayam Brand.
“We were initially skeptical to enter this sale model as we believed that only low priced, average quality products are bought here. In fact, we thought we won’t have any business here but we were wrong,” he adds. A recent contract entered into with Prince Hotel in Virudhunagar, gives them a monthly business of minimum 1000 liters.
Idhayam, known for its quality products has associated with renowned Chef Dhamodharan to create recipes using the company’s oil. It has also sponsored for a YouTube show with Chef Venkatesh Batt’s Idhayam Thoota Samayal. It also has chef Priya Shiva to put up various recipes using the brand in her blog. It has also been actively promoting oil bath in Sankara TV and created a platform for customer interaction. The customers can give their feedback for the oil bath and win rewards. “This initiative would gain our business and also help in getting the culture back,” Muthu adds.
When asked what is the challenge, he faces in taking the products to the chef fraternity, Muthu confidently said, “We don’t have a challenge. We are a powerful brand. Everyone in Tamil Nadu knows us and even if it is high-priced, it has a warm welcome here.”
Idhayam is also trying to expand its customer base to Andhra and Telangana. The company expects to sell 1000 tons of sesame oil and 2000 of groundnut oil in these states within the next ten years. Muthu believes it to be a potential market for them as there are fewer quality products. He also adds that exploring these states would help him double up the customer base in the United States and Europe, thanks to the presence of NRIs who have their roots in the two states.
The 90-year old brand has a well-structured supply chain. It procures raw materials all through the year from various parts of the country. “India is as good as the world for us. Throughout the year, we are happy as our 90 years of experience has helped us understand each and every market, in turn aiding us to capture markets,” said Muthu.