The domestic market has grown from 1,000 tonnes in 2003 to 12,000 tonnes in 2013, according to estimates by the Indian Olive Association. “For a market that consumes about 12 million tonnes of edible oils, olive oil’s share works out to just 0.1 per cent.
The edible olive oil market has been growing at 45-50 per cent over the last five years, with significant growth in Tier II markets. We’re seeing a lot of traction in Tier-II cities with growth doubling year-on-year,” stated Rajneesh Bhasin, president, Indian Olive Association and managing director, Borges India.
Borges India commands a 35-50 per cent market share at present. “Our innovations like the ‘extra light’ olive oil sub-category, a refined variant, introduced in 2010, has helped us win a considerable consumer share. Initially, the product category was around 3,000 tonnes in India predominantly driven by the massage oil, but over the years, the category has grown to 11,000 tonnes, with a major shift, almost 70 per cent, being edible olive oil,” he said.
Believing Borges India to be a market leader in the edible olive oil space in the country today, Bhasin is confident to take it to 40 to 50,000 tonnes in the next five years. “The product category has been growing at a CAGR of 30-40 per cent so far.
Even if the market maintains a minimum 25 per cent CAGR growth, we will be able to achieve the targeted growth. We are aiming to increase the consumption by at least one per cent in the next decade,” he replied. He also informed that Borges India is set for a Rs 100 crore turnover by 2015.
Commenting on the initiatives taken by the Indian Olive Association, Bhasin stated, “Due to the persistent lobbying efforts of the Indian Olive Association, the duty on extra virgin olive oil has come down from 450 per cent few years back to 0-two per cent and of refined olive oils to seven-eight per cent.
Presently, table olives are at a disadvantage because of higher duty, and the association is working on it as well.” Established in 1896, Borges Mediterranean Group is into all the key Mediterranean food categories with subsidiaries in eight countries. Borges India, established in 2009, is a fully owned subsidiary of Borges Mediterranean Group.The olive oil market has shown significant growth in recent years in India,