Article Today, Hyderabad: The Telangana State Oilfed is facing criticism over its recent agreement with a private company to lease the popular ‘Vijaya Hyderabad’ brand. What was once a trusted name in edible oils is now at the center of a controversy. Critics allege that the organization has handed over brand rights and warehouse space at throwaway prices, damaging both the brand and public trust.
Allegations Against Senior Marketing Official
The deal was allegedly orchestrated under the watch of Tirumaleshwar Reddy, Oilfed’s marketing manager. Under his leadership, the state-owned brand was leased for ten years to a private firm. In return, the company pays only 0.5 percent royalty for the first five years and 0.75 percent for the next five. This, despite the potential of multi-crore turnover, has raised eyebrows. Adding to the concern, the agreement involved a one-time franchise fee of just ₹10 lakh.
Government Property Leased at Low Rent
As part of the deal, Oilfed’s warehouse and sales outlet at RTC Crossroads were leased to Unistem Sales and Marketing LLP. The rent is reported to be only ₹45,000 per month. The opposition questions the benefit of such an arrangement to the government and its citizens. They demand transparency on how these deals serve public interest.
Private Firm Markets Substandard Goods
Under the Vijaya label, the private company began selling 22 essential items — including basmati rice, wheat, millet flour, spices, dry fruits, and snacks. Initially, the firm promised wide market reach, claiming their products would be available in super bazaars and kirana stores. They also declared plans to open 200 outlets featuring over 100 daily-use products, along with Vijaya milk and oil. However, these claims have largely fallen flat. Consumers allege the products are substandard and damaging the brand’s reputation.
Consumer Complaints Mount Over Poor Quality
Local customer Chintakindi Srinivas shared his experience, stating that he purchased goods assuming Vijaya quality, but was disappointed by their poor standard. Many now believe the company is more focused on profit than public service. A senior Oilfed official, speaking on condition of anonymity, said the deal appeared driven by commission-based motives rather than strategic planning.
Public Trust at Risk, Questions Remain Unanswered
The agreement, originally pitched as a win-win for the government and consumers, now seems to benefit only the private firm. Critics argue that without proper oversight, state assets and brand value are being handed over for private gain. Calls for an investigation into the deal are growing louder, as concerns about misuse of public resources and consumer safety deepen.
