RUCHI SOYA

INDUSTRIES LIMITED
CORPORATE PRESENTATION
August 2013

Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations:
This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of

Ruchi Soya Industries Limited (the "Company or Ruchi Soya), nor shall part, or all, of this document form the basis of, or be relied on in connection
with, any contract or investment decision in relation to any securities of the Company.
This document is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium

or in any form for any purpose. The information in this document is being provided by the Company and is subject to change without notice. The
Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.
This document contains statements about future events and expectations that are forward-looking statements. These statements typically contain
words such as "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is a
forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance
or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises nor
should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations,
estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the document. The Company
assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in
factors affecting these statements.
You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will
conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.
Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create
any implication that there has been no change in the affairs of the Company since that date.

Page 1

INDEX
pg.

Company Overview

Key Highlights

Financial Performance

16

Appendix

20

Page 2

COMPANY OVERVIEW

OVERVIEW OF RUCHI SOYA

Ruchi Soya: An Award Winning Story

Company Profile

Listed on BSE (500368) & NSE (RUCHISOYA)

Consolidated Annual turnover of over US$ 5.5 Bn(1)(2) in FY13

One of the largest integrated oilseed solvent extraction and edible oil
refining companies in India in terms of oilseed crushing and oil refining
capacity as of 31 March 2013

Among the oldest and most established edible oil players in India, Ruchi Soyas
strong brand recognition enable the Company to maintain its leading position
in the industry

#1 in Indian Edible Oil Sector: Based on volume

1st

Crushing capacity (13,394 MT/day)

sales in overall Refined Oil in Consumer Packs

(ROCP) in India (4)

Refinery capacity (11,208 MT/day)

Strong Brand Recognition in India

#1 in Food and Agri Products in India as per

1st

Fortune 500 Indias survey of largest Indian

corporations (5)

Branded portfolio including Nutrela, Ruchi Gold and Mahakosh

Integrated operations:
Access to over 200,000 hectares of land in India for potential palm oil
plantations as on 31 March 2013

Ranked 121st in the list of Worlds Top 250 consumer product companies
as per a report titled Global Powers Of The Consumer Product Industry 2013
published by Deloitte

Recognised as the highest importer of edible oil and highest exporter of oil
meals in India(3) by certain Indian industry bodies

Segmental Revenue Spilt (2)

FY 2012 Revenue Mix
Food
products
1%
Vanaspati
3%

Others
12%

Extractions
, 23%

Notes:
(1)
(2)
(3)
(4)
(5)

Oils
61%

In INR Million

Growing Sales (2)

INR Bn

SALES REVENUE

350

FY2012

FY2013

Change

Extractions

63,500

70662

11.27%

Vanaspati

10,559

8963

-15.11%

250

Oils

204,842

184001

-10.17%

200

Food Products

3,102

4132

33.20%

Wind Turbine

460

564

22.61%

Others

23,372

34889

47.43%

100

Total

305,835

303211

-0.95%

50

306 303

300
184

117 127

150

26

33

39

52

76

145

91

48

Assuming INR/USD of 54.38

0
On the basis of consolidated financials
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Globoil Awards 2012
Ruchi Soya Industries Ltds calculation based in part on data reported by Nielsen through its Retail Index Service for the Refined Oil Consumer Pack Category for period ending Mar MAT 2013 at an All India (U+R)
Market level. (Copyright 2013, The Nielsen Company)" (MAT refers to moving annual total i.e. a period of 12 months)
Fortune 500 India, December 2012, Volume 3 Issue 2

FY13

Page 4

ORGANIZATIONAL CHART(1)
Ruchi
Worldwide Limited
(52.48%)

Gemini Edible
& Fats India
Private Limited
(50%)

Mrig Trading
Private Limited
(100%)

RSIL
Beneficiary
Trust
(100%)

GHI Energy
Private Limited
(48.96%)

Indian Oil
Ruchi Bio
Fuels LLP
(50%)

Ruchi Soya Industries

Limited
(Parent)
Group companies within India
Group companies outside India

Ruchi Industries
Pte Ltd
(100%)

Ruchi
Agri Trading
Pte. Limited
(100%)

(1)

Shareholding pattern as of 31 Mar 2013

Palmolein
Industries Pte.
Limited
(100%)

Ruchi Ethiopia
Holding Limited
(100%)

Ruchi Agri
Plantation
(Cambodia)
Pte. Limited
(100%)

Ruchi Agri
SARL.
(100%)

Ruchi Agri PLC

(100%)

Page 5

LEADING POSITION IN EDIBLE OIL SEGMENT

The Company has an estimated market share of ~15% in the edible oil segment in India. In terms of ROCP category, the Company has
attained leadership position with market share of ~ 17% as per a recent survey(1)

Ruchi Soya edible oil sales(2)

3,500

Ruchi Soya edible oil market share (estimated) (3)

20%

Ruchi soya edible oil segment:

CAGR FY07FY13: 14%

18%

3,000 Indian edible oil:

2,697

CAGR FY07FY13: 8%

2,500

2,398

Quantity (000'MT)

14.9%

14.7%

14%

2,000

1,500

15.6%

16%

Market Share (%)

2,380

1,535

18.3%

3,095

1,598

1,243

12%

11.8%
10.5%

11.0%

10%
8%
6%

1,000

4%
500

2%
0%

FY07

FY08

FY09

FY10

FY11

FY12

FY07

FY13

FY08

FY09

FY10

FY 11

FY12

FY13

(000MT)

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

Industry edible oil consumption

11,807

12,989

14,508

15,247

16,052

16,901

18312

Source: USDA FAS

Notes:
(1)
(2)
(3)

Ruchi Soya Industries Ltds calculation based in part on data reported by Nielsen through its Retail Index Service for the Refined Oil Consumer Pack Category for period ending March MAT 2013 at an All India (U+R)
Market level. (Copyright 2013, The Nielsen Company)" (MAT refers to moving annual total i.e. a period of 12 months)
Company Filings. Standalone sales of edible oil segment of Ruchi Soya Industries Ltd.; excludes the sales for captive consumption
Market share estimated based on edible oil sales of Ruchi Soya and Industry edible oil consumption data based on USDA FAS data, prepared by Ruchi Soya

Page 6

BUSINESS STRATEGIES

To capitalize on the supply and demand gap in the edible oil industry in India
To increase market share in branded edible oil products and food products in India
To continue focus on backward integration
To have a global footprint
To focus on innovation in our product range to deliver differentiated products
Page 7

KEY HIGHLIGHTS

KEY HIGHLIGHTS

Favourable Industry Dynamics

Strong Brand Recognition in

India

Fully Integrated Operations

Extensive Distribution Network

in India

Experienced Management

India is one of the leading consumers of edible oil

Significant room for growth in domestic production expected given that the increasing
consumption of edible oil has been primarily met through imports as domestic production is not
able to keep pace

Our brand portfolio includes brands such as Nutrela, Mahakosh and Ruchi Gold, which enjoy
strong brand recognition in the Indian market

One of the few companies in this industry operating across the value chain from origination,
supply chain, manufacturing to branding, which enable us to manage costs more effectively than
several of our competitors

Pan-India presence with strategically located manufacturing facilities striking the right balance
between proximity to raw materials and markets

Extensive distribution network in India and a large sales force

Experienced management team with over four decades of industry experience

Key members have served or are currently serving as officers of various industry bodies,
recognizing their standing in this sector

Page 9

FAVOURABLE INDUSTRY DYNAMICS

GLOBAL EDIBLE OIL INDUSTRY OVERVIEW
India is the leading consumer of edible oil with high growth expectation
World Edible Oil Production (FY13)

World Edible Oil Consumption (FY13)

Brazil, 4%

Indonesia
Indonesia
20%

Other
26%

China, 20%
Malaysia
13%

Others, 39%
India
5%

Argentina,
2%

US, 8%

Argentina
Argentina
5%
United
States
6%

Europe, 15%
India, 12%

China
14%

Europe
10%

Source: USDA FAS

Palm and Soyabean oil constitute ~61% of the Global Edible Oil Demand

46%

Palm
Rapeseed
Cottonseed
Other

16%

13%

6% 7% 8% 4%

Soyabean
Peanut
Sunflower seed

180
160
140
120
100
80
60
40
20
0

3%

23
13
24

24
14
24

4%

20
11
17

21
10
18

21
12
20

21
11
22

23
11
23

41

42

36

38

3%

36

42

38

37

41

44

45

47

49

54

6%

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Sunflowerseed oil

Others

Palm oil
Source: USDA FAS

FY07-FY13
CAGR

(MnT)

Soyabean oil

Rapeseed oil

Source: Global Edible Oil Demand as per USDA FAS

5%

Page 10

FAVOURABLE INDUSTRY DYNAMICS

INDIA EDIBLE OIL INDUSTRY - HIGH GROWTH POTENTIAL
Robust growth in consumption of edible oil .... Rising deficit with domestic production not being able to keep pace
getting turbo charged by growing per capita
income

Oil Consumption In India growing inline with growth

in population
Million

Mn MT

1700

20

USD

1583
1389

12
1009

1068

10

1000
10

200

0
Population

400

549

467
481

6
807

630

GDP / capita

40

10

2010-11

2011-12

2012-13

25
20
15

10
5
0

Per capita consumption

Source: USDA FAS, IMF

11

Edible oils have a significant share in Indian agricultural imports

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Sugar Cotton
1%
4%

Others
2%

Spices
3%

Cashew Nuts
7%

0
India Imports

2009-10

30

Fruits & Nuts

6%

12

2008-09

35

Source: USDA FAS, IMF

CAGR 2005-2012 Imports: 10%

CAGR 2005-2012Production : 1%

Source: USDA FAS

1455

16

1342

Indian Edible oil demand being substantially met by imports as domestic

production has lagged
Mn MT

1081

200

Total oil consumption

Source: USDA FAS, IMF

20

729

800
600

700

16
14

1400
1200

1200

Per capita oil consumption (Ltr)

MT

1800

1600
15

Significant growth in per capita consumption can be

expected as Indian per capita GDP continues to grow

India Production

Pulses
12%

Source: Ministry of Agriculture (GOI) and DGCI&S)

Edible Oil
63%

Page 11

FAVOURABLE INDUSTRY DYNAMICS

INDIA EDIBLE OIL INDUSTRY - HIGH GROWTH POTENTIAL
Palm oil consumption in India has seen significant growth, and is primarily met through imports, leaving significant room
for growth in domestic production
India Edible Oil Imports

India Edible Oil Consumption

20000

Source: USDA FAS (Office of Global Analysis)

FY07-FY13 CAGR
000 MT

10,500

8%
16,901
16,052
15,247
14,508

12,970

14000
12000

10000

655
733

11,807

523
600

574
398

2,300

2,640

639
1280

9,000

1380

278
583
7,500

2,425

2,096
1,256

1,060

2,750

2,760

1,320

655

3,000

6,000

2,433

140
203

1,189
1,160

4,500

1,598

1114
200
776

1,150

1,174

945

143
18
733

1,447

8,500

1,582

6,230

6,440

7,080

7,425

8,425

15%

1,433
5,075

256
611

7,473

6000

4000

1150
266

15%

1,455

2,133

651
991

2,318

2,097
1,967

8000

659
912

2,330

2,500

248

13%

18,312

18000

16000

FY07-FY13 CAGR

6,867

6,603

6,661

FY09

FY10

FY11

3,000
5,013
3,650

1,500

3,671

2000
0

947

1,054

FY07

FY08
FY09
Cottonseed
Rapeseed
Other

1,038

1,060

1,116

FY10
Palm
Soybean

FY11

1,214

1,238

FY12
FY13
Peanut
Sunflowerseed

0
FY07

FY08
Palm

Soybean

Sunflowerseed

Source: USDA FAS (Office of Global Analysis)

FY12

FY13

Other
Page 12

STRONG BRAND RECOGNITION IN INDIA

Track record of creating successful brands in a highly commoditized industry. Company has multiple brands for several of
their products to cater to different income segments of the Indian retail market

Premium

Key Brands

Nutrela Food products/ Refined Oils (Soyabean,

Groundnut, Cottonseed, Sunflower , Mustard ,
Ricebran)

Value

Nutri Gold Vanaspati

Mahakosh Refined Oils (Soyabean, Groundnut,

Cottonseed and Ricebran) & Vanaspati
Sunrich Refined Sunflower Oil

Ruchi Gold Refined Oils (Mustard and Palmolein)

Mass

Ruchi Star Refined Soyabean Oil

Ruchi No. 1 Vanaspati

Page 13

FULLY INTEGRATED OPERATIONS

Healthy mix of midstream and downstream, and well on its way to develop an upstream business
One Of The Few Edible Oil Companies in India with Integrated Operations
Information flows / Visibility across value chain

Origination

Processing

Products

Merchandising
and
distribution

Customer

Finance / Risk management / Logistics coordination

Origination

Palm plantations across Andhra

Pradesh, Karnataka, Mizoram,
Gujarat, Orissa and Tamil Nadu

Access to total agricultural land

of 2,00,000 hectares for potential
oil palm procurement

Processing

Daily capacity (MT)(Mar - 2013):

Crushing:13,394
Crude Oil: 2,411
Soya Meal: 10,983
Refining: 11,208
Vanaspati & bakery fats: 2,118
Textured soya protein: 467
Edible soya flour: 300

Products

Key products
Edible oil
Seed extractions,
Vanaspati
Food productions
Key brands include Nutrela,
Ruchi Gold, Ruchi Star, Sunrich
and Mahakosh

Merchandising and distribution

As of 31 March 2013, 106

company depots through India
with storage and logistical
facilities

As of 31 March 2013, pan-India

non-exclusive distribution
network covering 5,642
distributors reaching over
725,000 retail outlets

Page 14

EXTENSIVE DISTRIBUTION NETWORK IN INDIA

We have a large distribution presence in India. As of March 31, 2013, we have 22 manufacturing locations, 11 wind power generating
locations and 106 company depots across India. In terms of distribution, we have 5,642 non-exclusive distributors in India, covering
over 2,210 towns and over 725,000 retail outlets.

Pan India Presence

Strategic Manufacturing locations

Strategically located facilities striking the right balance between proximity to
raw materials (cultivating states and ports) and proximity to markets.

Cities

Jammu

Sriganganagar

2
4 3

Kota

Baran
Daloda

14
20

Shujalpur

5Guna

7
Manglia

Piparia

11

Kandla

13

Gaderwada

Washim

12
Patalganga

Durgawati

Nagpur

15

Vijaywada

19

10

Haldia

1 Jammu
2 Ganganagar
3 Baran
4 Kota
5 Guna
6 Kandla
7 Shujalpur
8 Piparia
9 Gadarwara
10 Haldia
11 Manglia
12 Nagpur
13 Washim
14 Daloda
15 Patalganga
16 Mangalore
17 Chennai
18 Kakinada (A.P) palm mill
19 Vijaywada (A.P) palm mill
20 Durgawati (Bihar)
21 Mysore (Palm Crushing)
22 Krishnapatnam

18

16

Kakinada

Manglore

22 Krishnapatnam

21
Mysore

17

Chennai

Pan India
Footprint

Proximity to
Ports
Note: Manufacturing and other locations as on March 2012
Map for representation purpose only - Not to scale
Plant location

Crushing in
Soya bowl of
India

Crushing

Refining

Activity
Vanaspati

Soya food

Access to
Ports

Processing plants across 22 locations in India, giving access to markets

across India

106 company depots (with storage and other logistical facilities) which
serve 5,642 distributors across the country reaching over 725,000
retail outlets

All refining plants located near ports, providing easier access to

imported edible oil

Distribution through pipes at ports saves transport cost and time

Inland crushing plants located in key soya bean and mustard producing
states

Page 15

EXPERIENCED MANAGEMENT

Experienced management team with over four decades of industry experience

Credited with the growth and development of the soya and soya processing industry in India

Key members have served or are currently serving as officers of various industry bodies, recognizing their standing in sector

Core Management Team

Mr. Dinesh Chandra Shahra

Managing Director

Managing Director of Ruchi Soya Industries since 1986

Over 33 years of experience in the soya and edible oil industry
Mr Shahra holds a degree of Bachelors in Chemical Engineering
Entrusted with the day to day management affairs of the Company subject to the supervision
and direction of the Board

Mr. Nitesh Shahra

Business Controller

Responsible for finance and accounts, audit, risk management and taxation
20 years of experience with Ruchi Soya in various capacities including as the head of
refinery and commodity trading
Mr Shahra holds Masters in Business Administration

Mr. V. Suresh Kumar

Head of Finance

Over 27 years of experience, including ~20 years in Ruchi Soya

Responsible for Finance and Treasury operations
Qualified chartered accountant, cost accountant and company secretary

Mr. Sanjeev Asthana

Director

Over 26 years of experience and holds a post graduate diploma from IRMA. Oversees
business of the Company
Previous experience includes Cargill and Reliance, both in India and abroad

Page 16

FINANCIAL PERFORMANCE

CONSOLIDATED FINANCIAL PERFORMANCE

INR Million

FYE MAR 10

FYE MAR 11

FYE MAR 12

FYE MAR 13

145,333

183,729

305,835

303211

EBITDA(1)

5,316

7,173

10,080

9750

EBITDA (% of gross revenues)

3.7%

3.9%

3.3%

3.21%

Finance Cost(2)

1,537

2,550

6,625

4482

Depreciation & Amortisation

1,203

1,458

1,729

1869

Profit Before Tax

2,809

3,381

1,957

3610

Profit after Tax(3)

1,749

2,252

869

2732

Total Revenue

Source: Company Filings.

(1)
EBITDA = Total Revenue Total Expenses
(2)
Finance cost = Interest expense + Other Borrowing Costs + Net Loss of Foreign Currency Transactions
(3)
Profit after tax excludes profit attributable to Minority Interest

Page 18

CONSOLIDATED BALANCE SHEET

INR Million

FYE MAR 10

FYE MAR 11

FYE MAR 12

FYE MAR 13

Net Fixed Assets Incl. CWIP

20,942

24,165

27,375

28,743

Cash and Cash balances

15,997

19,547

33,151

42,962

Inventories

16,184

32,045

41,614

35,628

Total Assets

80,070

111,460

146,142

168,222

Long-term Borrowings

7,053

7,426

8,753

11,226

Short-term Borrowings

17,508

37,699

53,431

62,540

Gross Borrowings

24,561

45,125

62,184

73,766

Net Borrowings(1)

8,564

25,578

29,033

30,804

Shareholders Funds(2)

19,678

22,375

22,499

24,719

Total Capitalization(3)

28,242

47,953

51,532

55,523

Source:
(1)
(2)
(3)

Company filings
Net Borrowings = Gross Borrowings Cash and cash balances
Shareholders funds = Paid up Capital + Retained Earnings + Minority Interest
Total Capitalization = Consolidated Net Borrowings + Shareholders Funds

Page 19

SUMMARY CONSOLIDATED FINANCIALS AND RATIOS

Revenues
INR Bn

CAGR 2010- 2012: 28.3%

350

INR Bn

306

303

300

10.08

184
145

22.3

22.5

24.7

19.6
20

5.31
10

50
0

0
FY10

FY11

FY12

FY13

0
FY10

FY11

FY12

FY13

Net Leverage (1)

Total Assets

FY10

FY11

FY12

FY13

Net Borrowings / Total Capitalization (2)

CAGR 2010- 2012: 22.2%

168

180
146

160
140

4.0

0.6

3.57

3.5

2.88

3.0

111

120

3.16

80

2.0

40

1.0

20

0.5

0
FY11

FY12

FY13

0.55

0.5

0.3

1.61

0.2
0.1
0.0

0.0
FY10

0.56

0.30

1.5

60

0.53

0.4

2.5

80

Source:
(1)
(2)

9.75

100

100

CAGR 2010- 2012: 4.6%

30

7.17

150

INR Bn

INR Bn

CAGR 2010- 2012: 23.8%

12
10

250
200

Shareholders Funds

EBITDA

FY10

FY11

FY12

FY13

Net Leverage = Net Borrowings / EBITDA

Net Borrowings = Gross Borrowings Cash and cash balances; Total Capitalization = Consolidated Net Borrowings + Shareholders Fund

FY10

FY11

FY12

FY13
Page 20

APPENDIX

ABBREVIATIONS
Abbreviations Used

Description

FY / FYE

Financial Year

9ME

9 Months Ending

Mn

Million

Bn

Billion

yr

Year

MT

Metric Tonnes

MTPA

Metric Tonnes per annum

BSE

BSE Limited

NSE

National Stock Exchange of India Limited

INR

Indian Rupee

US$

United States Dollar

USDA FAS

United States Department of Agriculture Foreign Agricultural Service

IMF

International Monetary Fund

Page 22

THANK YOU!