Homegrown goodness: Priyam Patel
For more than 30 years, NK Proteins has promoted local edible oil through its brand Tirupati Oils. Managing Director Priyam Patel sees the current macroeconomic challenges as a golden opportunity to promote indigenous products.
In a country with a population of 1.4 billion, demand for essential products such as edible oils is considerable – to say the least. Tasked with trying to meet this growing demand is NK Proteins, a leading Indian manufacturer and importer of edible oils with more than three decades of expertise.
Priyam Patel began his journey at NK Proteins as a 21-year-old intern, diving headfirst into the company’s operations.
"For the first two years, I was on the road 26 days a month, traveling from bustling cities to remote villages, meeting dealers and wholesalers and understanding our customers," Patel recalls.
"I explored every corner of the company to truly grasp its grassroots essence."
"With our growing population and improving standard of living, the demand for edible oil is only set to increase."
This, Patel feels, has been a game-changer in his current role as Managing Director and CEO of NK Proteins.
"When you don’t understand the ground level, you cannot take decisions at the top level," he says. "As a brand, if you don’t understand your customers, there is no point in doing what we are doing."
As a second-generation leader in a family run business, Patel initiated his leadership by gradually transforming the traditional business into a systems-oriented enterprise. He recognizes the challenges involved in this transformation.
"Changing the mindset of our loyal, smart employees who have been with us for 25–30 years, and changing how they work, hasn’t been easy," he admits.
Today, Patel takes pride in the substantial cultural shift he has achieved within the organization.
"I believe I have done an excellent job in transforming the mindset of my team. My people now share the vision I saw 13 years ago. This alignment is the greatest intangible asset I’ve contributed since joining NK Proteins," he reflects.
Obstacles to opportunities
India, as the world’s largest importer of edible oil, has encountered significant obstacles in recent years due to various macroeconomic factors.
"Several issues have contributed to the disruption of edible oil imports to India," Patel explains.
"These include the conflict in Ukraine, export duties imposed by Malaysia, domestic market obligations in Indonesia, and drought and currency depreciation in Argentina."
While this dependence on imports presents challenges, Patel views it as a valuable opportunity.
"We are witnessing a significant rise in the cultivation of oilseed crops within India," Patel says.
"For example, mustard cultivation has surged, particularly following the government’s approval of genetically modified mustard seeds. Additionally, there is a notable increase in the cultivation of cottonseed and groundnuts.
"NK Proteins is currently one of the leading edible oil companies in India. With our growing population and improving standard of living, the demand for edible oil is only set to increase."
Since its inception, NK Proteins has been committed to promoting indigenous products.
"As an Indian company, we are dedicated to supporting Indian oil seeds," Patel explains.
"Our primary focus now is on boosting the use of our native crops such as cotton, groundnut and mustard. This initiative will help reduce our reliance on imported oil and contribute to achieving Atmanirbhar Bharat [self-reliant India], which is our Prime Minister’s vision."
Planting the seeds of change
Patel is currently steering NK Proteins through a transformative phase, guiding the company to adapt to a dynamic business landscape.
"We have initiated the migration of our systems to state-of-the-art software, while simultaneously focusing on automating our labor-intensive processes," he explains.
The company has also entered the snacks market with chips and namkeen (savory snacks) in recent times.
"We want to get into the complete staples market with good quality branded and packaged products," Patel says.
Rooted in community
Patel firmly believes that the essence of NK Proteins lies in its people.
"Beyond sales figures, we prioritize our workforce, the wellbeing of our society, the villages surrounding our factory and our efforts to uplift the community, while providing the best products to our customers," he reflects.
"We have an open-door policy where we encourage our stakeholders to meet us for an open conversation any time. Among employees, there are no chains of hierarchy for the communication to flow through."
NK Proteins sources its supplies from a diverse range of partners, including small farmers and oil mills, as well as major corporations like Tata and JSW Steel Coated Products, ensuring a robust supply chain.
"As an Indian company, we are dedicated to supporting Indian oil seeds."
While the company maintains strong relationships with all its suppliers, it holds a particularly special bond with the small farmers who provide their oil seeds.
"We are committed to ensuring that farmers receive fair prices for their products," Patel says.
"We are collaborating with 500 farmers to establish model farms that promote better yields, reduced use of pesticides, zero child labor and improved water efficiency."
And while NK Proteins believes passionately in achieving these socially beneficial outcomes, Patel will not lose sight of what allows them to stay afloat and continue to make a difference.
"Our core philosophy is to ensure that our bottom lines remain strong," he says. "This priority outweighs any story we might tell about our company."