Cases

Overview of Rice Bran Oil Players in Andhra Pradesh for a Global Giant in the Agri and Food Business

Challenge

The client, a global giant in the agri and food business, wanted an overview of Rice Bran Oil (RBO) players in Andhra Pradesh, for a potential opportunity to lease/ acquire the unit. The client also wanted to understand the terms for leasing and the terms for supplying RBO to the other company.

Our Approach 

To provide an overview of Rice Bran Oil players in Andhra Pradesh, UC adopted the following approach:

  • Shortlisted and met 12 players in the districts of Krishna, East and West Godavari. In addition, also met rice mill owners and brokers of rice bran
  • Primary research was driven by the objective to validate
    • If the shortlisted players followed a physical refining process and could meet the required colour specification
    • What mix of different bran variety was required to get the desired quality
    • Year round availability of the desired quality of bran – locally and imports from other states like Orissa and West Bengal
    • Impact of storage on the properties of crude and refined RBO
    • Conversion cost of crude to refined RBO
    • Promoter’s interest in leasing/ selling the unit.

Impact

UC’s study confirmed the suitability of coastal AP districts to meet the RBO requirements. UC then documented the terms and conditions along with the pre-requisites for the client to discuss leasing options with the other company. UC also shortlisted 2 players for the client to proceed on further discussions and technical diligence.