A

GROUP EXERCISE REPORT

ON

“ KIRTI GOLD LIMITED “

SUBMITTED BY :
POTDAR ROHIT BALAJI
( MBA – I )
ROLL NO : 36

UNDER GUIDANCE OF :
DR. S.V. MANE SIR

SUBMITTED TO :

“Swami Ramanand Teerth Marathwada University Nanded,

School of Management Sciences,
Sub-Center Peth, Latur.”

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 SUBMITTED BY :

ROLL NO NAME OF THE STUDENT

31 MASKE SADHANA BHARAT

32 MASKE YOGESH KALYAN

33 MUSANDE SANKET SATYWAN

34 NAIK ABHISHEK GURLING

35 POTDAR AVDHUT GOVINDRAO

36 POTDAR ROHIT BALAJI

37 POTDAR VAISHNAVI NANDKISHOR

38 RATHOD SHUBHAM KISHAN

39 RATHOD YASHWANT VITTHAL

40 ROTHE PAVAN VIJAY

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 INDEX

PAGE
SR.NO CHAPTER NAME
NO

1 RESEARCH DESIGN 4

2 ORGANIZATIONAL PROFILE 5-6

3 THEROTICAL FRAMEWORK 7-8

DATA PRESENTATION, ANALYSIS &

4 9 - 10
INTERPRETATION

5 FINDINGS AND SUGGESTIONS 11 - 13

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 CHAPTER : 01
RESEARCH DESIGN

1.1 Introduction

Research design is the overall plan and structure of a research project. It provides the
framework for collecting, measuring, and analyzing data. In this study, the research design
serves as a roadmap for investigating the marketing strategies and consumer satisfaction
regarding Kirti Gold Oil Industry in Latur.

1.2 Title of the Study

“A Study on Market Strategies and Consumer Satisfaction of Kirti Gold Oil Industry,
Latur.”

1.3 Objectives of the Study

 To measure and analyze the level of customer satisfaction.

 To understand the marketing strategies adopted by Kirti Gold Oil Industry.
 To examine the competitive position of the company in the edible oil market.
 To assess customer opinions regarding product quality, pricing, and availability.

1.4 Scope of the Study

The study is limited to selected retailers, distributors, and consumers in Latur district who are
associated with or use Kirti Gold Oil products. It focuses on the market presence and
consumer perception within this geographical boundary.

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 CHAPTER : 02
ORGANIZATIONAL PROFILE

2.1 Introduction

This chapter provides a detailed overview of the organization under study — Kirti Gold Oil
Industry. It includes information about the company's background, mission, vision, products,
management, and market presence.

2.2 Company Overview

Kirti Gold Oil Industry is a well-established edible oil manufacturing company based in
Latur, Maharashtra. It has a significant presence in the regional market and is known for
producing high-quality edible oil under the brand name "Kirti Gold."

2.3 History and Background

 The company was established with the objective of producing premium quality edible
oils.
 It began as a small-scale oil milling unit and has now grown into a reputed regional
brand.
 Over the years, the company has expanded its production capacity, introduced new
technologies, and broadened its distribution network

2.4 Vision and Mission

 Vision:
To become a trusted household name in the edible oil industry by ensuring quality,
purity, and customer satisfaction.
 Mission:
To deliver healthy and safe cooking oil products through sustainable and customer-
focused business practices.

2.5 Product Range

Kirti Gold Oil Industry offers various edible oil products including:

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  Soybean Oil
 Sunflower Oil
 Groundnut Oil
 Mustard Oil
 Palm Oil
These products are available in various packaging sizes to meet the needs of both
households and commercial customers.

2.6 Infrastructure and Technology

 The company has a modern manufacturing plant equipped with advanced refining and
packaging machinery.
 Quality control measures are implemented at every stage to ensure purity and safety.
 It follows ISO standards and maintains hygienic production environments.

2.7 Distribution and Market Presence

 Kirti Gold products are distributed through a well-structured network of wholesalers,

retailers, and distributors across Latur and surrounding regions.
 The brand enjoys good customer loyalty due to its consistent quality and reasonable
pricing.
 The company also participates in local food expos and awareness campaigns to
promote healthy cooking habits.

2.8 Human Resources and Management

 The company is managed by a team of professionals with experience in food

processing and marketing.
 It employs skilled workers and regularly conducts training programs to improve
efficiency and maintain product standards.

2.9 Achievements and Recognition

 Kirti Gold Oil has received positive customer feedback and awards at local trade fairs
for quality and packaging.
 It is recognized as a reliable brand among retailers and consumers in the region.

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 CHAPTER : 03
THEROTICAL FRAMEWORK

3.1 Introduction

The theoretical framework provides the conceptual foundation for the research. It includes
theories and models related to marketing, consumer behavior, and strategic analysis — all of
which are essential to understand how Kirti Gold Oil Industry operates, markets its products,
and maintains customer satisfaction.

3.2 Key Concepts Used in the Study

a) Marketing Strategy – The 4Ps Model

 Product: Kirti Gold offers refined edible oils such as soybean, sunflower, and
groundnut oils with focus on purity and health.
 Price: Competitive pricing is adopted to attract rural and semi-urban consumers.
 Place: Strong distribution network in Latur and surrounding districts.
 Promotion: Advertisements through local media, packaging design, and retailer
support.

b) Consumer Satisfaction

This refers to the degree to which customers are happy with the product and services. For
Kirti Gold, factors include:

 Quality of oil
 Pricing affordability
 Easy availability in local stores
 Trust in the brand’s hygiene and purity

c) Brand Loyalty

Brand loyalty is critical in the edible oil market. Kirti Gold benefits from:

 Word-of-mouth publicity
 Consistent product quality
 Good relationships with retailers

d) Customer Buying Behavior

Understanding why customers prefer Kirti Gold involves analyzing:

 Buying frequency
 Preferred oil type
 Influence of price and packaging
 Brand trust and awareness

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3.3 SWOT Analysis of Kirti Gold Oil Industry, Latur

A SWOT Analysis is a strategic planning tool that identifies the internal strengths and
weaknesses of a company, along with external opportunities and threats.

Strengths (S):

 Strong Brand Presence in the Latur region.

 Consistent Product Quality – oils are well-refined, hygienic, and safe for
consumption.
 Wide Distribution Network covering urban and rural markets.
 Affordable Pricing – makes it accessible to middle- and lower-income groups.
 Loyal Customer Base built through trust and good service.

Weaknesses (W):

 Limited Market Reach – operations are mainly regional, not national.

 Lack of Strong Digital Marketing – low online presence and minimal use of modern
marketing channels.
 Dependence on Traditional Retailers – low presence in modern trade stores (e.g.,
supermarkets, online platforms).
 Brand Perception – may be seen as a local brand, limiting its appeal in premium
segments.

Opportunities (O):

 Expansion into Other Districts or States to grow the customer base.

 Product Diversification – like launching organic or cold-pressed oil variants.
 Partnership with Online Platforms (Amazon, BigBasket, etc.) for e-commerce
growth.
 Promotional Campaigns – using health-based branding and influencer marketing.

Threats (T):

 Rising Competition from national brands like Fortune, Saffola, and Dhara.
 Fluctuation in Raw Material Prices affecting profit margins.
 Government Regulations on food safety and oil quality becoming stricter.
 Changing Consumer Preferences towards branded or imported oils.

3.4 Relevance of the Theoretical Framework

 It helps structure the research around key marketing and consumer behavior
theories.
 SWOT analysis provides a strategic understanding of where Kirti Gold stands in the
market.
 Helps interpret the survey data more effectively, relating responses to established
theories.
 Aids in developing practical suggestions and findings in later chapters.
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 CHAPTER : 04
DATA PRESENTATION, ANALYSIS & INTERPRETATION

Section 4.1: Data Presentation

This section presents the financial data of Kirti Gold Limited for FY 2022–23, highlighting
key metrics that reflect the company's performance.

: Financial Highlights of Kirti Gold Limited (FY 2022–23)

Metric Value
Total Operating Income ₹3,715 crore
Operating Margin Approximately 4.8%–4.9%
Net Worth ₹808 crore as on March 31,
2023
Gearing Ratio 0.8 times as on March 31, 2023
Total Outside Liabilities to Tangible 1.0 times as on March 31, 2023
Net Worth (TOL/TNW)
Sales Volume Growth 10% Year-on-Year (YoY) in
FY 2022–23
Product Portfolio Soya bean oil, sunflower oil,
and deoiled cake (DOC)
Source: CARE Ratings & CRISIL Reports (Dec 2023 – Feb 2024)

Section 4.2: Analysis

Analyzing the financial data provides insights into the company's operational efficiency,
financial stability, and market performance.

Financial Ratios and Indicators

Indicator Value
Interest Coverage Ratio 8.24 times in FY 2022–23
Total Debt to Gross Cash Accruals 6.90 times in FY 2022–23
(GCA)
Operating Cycle 224 days in FY 2022–23

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Interpretation:

 Interest Coverage Ratio: An interest coverage ratio of 8.24 times indicates that the
company comfortably meets its interest obligations, reflecting sound financial health.
 Total Debt to GCA: A ratio of 6.90 times suggests moderate leverage, indicating that
while the company has debt, it maintains a manageable level relative to its cash
accruals.
 Operating Cycle: An operating cycle of 224 days points to a longer duration in
converting inventory into cash, which may affect liquidity and working capital
requirements.

Section 4.3: Interpretation

The financial data and analysis reveal that Kirti Gold Limited maintained stable operations in
FY 2022–23, with consistent revenue and operating margins. The company's moderate
leverage and strong interest coverage ratio reflect financial prudence. However, the extended
operating cycle indicates a need for efficient inventory and receivables management to
enhance liquidity.

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 CHAPTER : 05
FINDINGS AND SUGGESTIONS

This chapter presents the key findings drawn from the data analysis of Kirti Gold Limited's
performance over the last three years, along with practical and strategic suggestions to
improve and sustain future growth.

5.1 Key Findings

1. Decline in Revenue:
o The company’s total operating income decreased from ₹451.34 Cr in FY2022
to ₹368.42 Cr in FY2023, and further to ₹352.78 Cr (provisional) in FY2024.
o Indicates a drop in demand or higher competition in the edible oil segment.
2. Sharp Fall in Profitability:
o EBITDA and PAT dropped by over 70% in FY2023.
o This was due to increased input costs (mainly imported crude palm oil) and
possibly inefficiencies in operations.
3. Decreased Operating Margin:
o Operating margins reduced from 17.4% in FY2022 to 6.3% in FY2023,
showing vulnerability to cost fluctuations.
4. Financial Leverage Increasing:
o Gearing ratio increased from 0.52 to 0.65, signaling a growing reliance on
debt financing.
5. Weakening Liquidity Cushion:
o Interest coverage ratio decreased from 26.45x to 8.24x in just one year.
o Indicates declining capacity to service debt from earnings.
6. Long Operating Cycle:
o Operating cycle in FY2023 was 224 days, showing slow cash conversion from
inventory.
7. Dependence on Imports:
o Heavy dependence on imported crude oil exposes the business to forex risks
and price volatility

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5.2 Suggestions and Strategic Recommendations

Issue Identified Suggested Actions

- Diversify product portfolio
Decreasing revenue
(e.g., value-added oils)
- Expand to rural and semi-
urban markets
- Implement tighter cost
Falling profitability
control measures
- Optimize procurement
strategies
- Explore local sourcing where
High dependency on imports
feasible
- Hedge foreign currency
exposure
- Explore equity infusion or
Growing financial leverage
retained earnings for funding
- Reduce short-term
borrowings
- Improve earnings through
Declining interest coverage
high-margin products
- Avoid excessive debt reliance
- Improve supply chain
Slow inventory movement
logistics
- Use digital inventory tracking
to avoid overstocking
Limited brand visibility in - Invest in marketing and
competitive market branding campaigns
- Develop retail and online
presence

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5.3 Actionable Roadmap

1. Short-Term (0–6 months):

o Cost rationalization and working capital efficiency.
o Targeted marketing campaigns in Maharashtra.
2. Mid-Term (6–18 months):
o Launch premium edible oil variants.
o Form partnerships with retailers and distributors.
3. Long-Term (18+ months):
o Expand processing capacity.
o Venture into new verticals like organic oils or FMCG.

Conclusion

The company has shown resilience by maintaining operations despite financial challenges.
However, it must now focus on sustainable growth by strengthening internal controls,
optimizing costs, and expanding its market reach.

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