RUCHI SOYA INDUSTRIES LIMITED CORPORATE PRESENTATION ABOUT RUCHI - - PowerPoint PPT Presentation

RUCHI SOYA INDUSTRIES LIMITED

CORPORATE PRESENTATION

ABOUT RUCHI SOYA INDUSTRIES (RSIL) OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY RSIL’S COMPETITIVE POSITIONING THE WAY FORWARD

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ABOUT RUCHI SOYA INDUSTRIES (RSIL)

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Overview of Ruchi Soya

• One of the largest agribusiness

companies in India, with annual turnover of over US$2.7bn in 2008

• The largest producer and supplier
• f Vegetable Oil and Soya Food in

India

• Instrumental in India’s Soya

Revolution

• Leading manufacturer of high

quality edible oils, bakery fats, and Soya foods

Business Mix

4 Others 2% Vanaspati 8% De Oiled Cake 23% Edible Oil 67%

Despite commodity cycles

International prices of major edible oils US$/MT 5

…We have GROWN consistently

Consistent revenue growth and has never been in red

NET SALES PAT

Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in 2006.

20,000 40,000 60,000 80,000 100,000 120,000 Rs.Mns FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 200 400 600 800 1000 1200 1400 1600 Rs.Mns FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

10 year CAGR 24% 10 year CAGR 25%

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Ruchi Soya has come a long way…

• Aggregator in highly fragmented edible oil business, with presence across

value chain from trading to manufacturing to branding.

• Largest player in India’s branded edible oil category (ROCP) accounting

for 19% of the Indian market.

• Over 2.1 MMTPA of refining and over 2.9 MMTPA of crushing

capacities spread over strategic locations (FY08).

• Distribution reach covering over 5,83,000 retail outlets.
• Strong brand portfolio of Nutrela, Ruchi Gold, Ruchi Star, Mahakosh,

Sunrich.

Source: Industry

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Dominance across segments

Industry is conducive to Ruchi becoming an aggregator

• Industry fragmented and

inefficient

• Virtual absence of integrated

players

RSIL Market Share 13% 17% 20% 25% 28% 0% 5% 10% 15% 20% 25% 30% Edible Oil Palm Oil Branded Oil DOC Soya Oil

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OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY

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Indian Oilseed Sector…

Source: Oil World 2007

• Indian oilseed sector accounts for –

 Domestic turnover of Rs.80,000 Crores (US$ 20bn)  Import and Export trade turnover of Rs.20,000 Crores ( US$5bn)

• India during 2006-07 accounted for –

 7.4% of world oilseed production.  6.1% of world major meal production.  3.9% of world meals export.  5.8% of world oil production  11.2% of world import of oils  9.3% of world oil consumption 10

Edible oil consumption – moving up

10820 11366 12280 12510 12835 3,500 7,000 10,500 14,000 2003-04 2004-05 2005-06 2006-07 2007-08 Total Edible Oil Consumption- in Mn Tonne 10.15 10.52 11.16 11.17 11.27 9.4 9.6 9.8 10 10.2 10.4 10.6 10.8 11 11.2 11.4 2003-04 2004-05 2005-06 2006-07 2007-08

Per Capita oil consumption- in Kg.

Consumption Pattern Palm Oil 32% Rapseed Oil 17% Soyabean Oil 20% Cottonseed Oil 7% Others 24%

Source : Industry

3 Year CAGR 4% 8% 10% 20%

• 1%
• 5%

0% 5% 10% 15% 20% 25% Palm Oil Rapseed Oil Soyabean Oil Cottonseed Oil Others

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…and move up even further

6 10 12 16 21 6 6 8 10 13 1 4 4 6 8 5 10 15 20 25 1996 2000 2006 2010E 2015E Total Demand Domestic Oil Supply Total Edible Oil Imports

Source : Rabo Bank, Industry

Over 1/3rd of demand met through imports

In MMT

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Industry – need for consolidation

Ruchi Soya Accounts for around 13% of Indian Edible Oil Consumption

• Fragmented and Inefficient industry:

 15000 Oil mills, 600 Solvent extraction units ,Over 650 refining units and 250 vanaspati units  More than 50% of the players with output less than 18000 MT/annum.  Capacity utilization lower than 30%  Per tonne operation cost more than double

• Virtual absence of integrated players, unlike globally: crushing, extraction and refining capacity
• wned by different entities
• Consolidation imminent in the Indian industry

 Better capacity utilization  Funds for higher investments  Well equipped to service the market

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A shift – ‘Loose’ to ‘packaged’

Source: Industry

Increasing attention to health and hygiene

Factors Driving the Shift

Increasing Presence of Organized Retail Channel Increasing Affordability Government Rules Favouring Packaged Oil Industry-wide branded edible-

• il sales expected to grow at

15% annually over the next few years versus 6% annually in the last few years

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Need of the hour…

Global scale capacities Shift from unbranded / unorganised to branded / organised Movement towards Value add And the most important – Indian industry needs a CONSOLIDATOR

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Ruchi Soya – right up there

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RSIL’S COMPETITIVE POSITIONING

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Asset Investment ahead of time…

Expansion – Multiple increase in capacity in 6 years

6 X 152 24 TSP 4 X 470 112 Vanaspati / bakery fats 12 X 2121 180 Refinery 5 X 2893 600 Solvent Extraction

Multiplier 2008 2002 Capacities (‘000 MTPA) 18

Strategically located Plants…

Indore Shriganganagar Shujalpur Kota Gadarwara Jabalpur Nagpur Patal Ganga Chennai Mangalore Haldia Kandla

Crushing Refining

Ruchi balances proximity to raw materials (cultivating states and ports) with proximity to markets

Baran Guna

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From supply chain to manufacturing

Share of Manufactured products up from 46% to 77% in 5 years

Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in 2006.

Sales Break up 20,000 40,000 60,000 80,000 100,000 120,000 FY03 FY04 FY05 FY06 FY07 FY08 Rs.Mns Manufacturing Supply chain

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Strong Brand portfolio provides an edge

• Well-established branded

portfolio

• Nutrela: A premium Umbrella

brand positioned on Health and Wellness platform.

• Ruchi Gold / Ruchi Star: Mass

segment brands

• Sunrich / Mahakosh / Mandap:

“Fighter brands”

• Increased focus on healthy food

products – Nutrela N’rich

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… which is reflected as

Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in 2006.

Share of Branded sales in Total sales grew from 19.6% in FY01 to 29.5% in FY08.

5,000 10,000 15,000 20,000 25,000 30,000 35,000 Rs.Mns FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

7 year CAGR 30%

Branded Sales

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Strengthening leadership

ROCP – Refined Oil in Consumer Pack

Leading the market with widening gap

ROCP market share %(volume) 20.8 19.6 19.7 15.0 14.4 12.7 11.6 11.4 12.0 11.3 12.3 10.2 10.3 9.7 9.4 9.5 9.7 18.5 18.6 19.0 17.5 17.8 18.1 18.7 19.4 19.6 14.7 16.2 15.4 15.7 16.1 15.8 15.6 15.2 14.4 14.3 0.0 5.0 10.0 15.0 20.0 25.0 APR07 MAY07 JUN07 JUL07 AUG07 SEP07 OCT07 NOV07 DEC07 JAN08 FEB08 MAR08 RUCHI SOYA INDS ADANI WILMAR CARGILL FOODS

Source:AC Nielsen

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Strengthening leadership

ROCP – Refined Oil in Consumer Pack

Source:AC Nielsen

Leading the market with widening gap

ROCP market share % (value) 17.4 17.4 17.8 16.3 16.6 16.4 16.9 17.5 17.8 18.7 17.5 19.2 16.0 16.1 9.4 9.4 16.0 16.8 16.0 16.2 16.6 16.2 15.9 15.7 14.9 15.0 9.4 13.2 12.0 11.9 12.3 11.6 12.6 10.3 10.4 9.6 0.0 5.0 10.0 15.0 20.0 25.0 APR07 MAY07 JUN07 JUL07 AUG07 SEP07 OCT07 NOV07 DEC07 JAN08 FEB08 MAR08 RUCHI SOYA INDS ADANI WILMAR CARGILL FOODS

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Reflecting in numbers…

Performance reflects the journey

58% 1592 22% 1007 828 PAT 62% 2537 31% 1564 1196 PBT 44% 4305 28% 2982 2338 EBITDA 28% 110380 14% 86277 75404 Net Sales Rs.Mn Rs.Mn Rs.Mn

% Increase FY 2007-08 % Increase FY 2006-07 FY 2005-06 25

THE WAY FORWARD

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New initiatives…

Scale-up the Branded Portfolio

• Leverage Organisation Strengths.
• Brand Architecture.
• Nutrela Meal Clock.
• Nutrela Brand Portfolio – The Journey.

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Leverage Organisation Strengths

• Large existing loyal consumer base – pan India presence
• Multi – locational manufacturing; contract production options
• Extensive field sales and trade distribution network
• Can access international technology
• Capable of investing in demand generation

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Brand Architecture

Brand Role in Portfolio Borrows from Nutrela Builds

(for itself and for the portfolio)

Nutrela

 Mother Brand (Driver/ Lead Brand)  Main Meal Brand  Volume driver  Visibility, Entry  Basic Nutrition Values

N’rich

 Endorsed brand  Beverage & Snack Brand  Image & Volume Driver  Nutrition Equity  Credibility, Recognition, Heritage  Energy, Activeness  Youthfulness, Premium- ness, Modernity  Freshness, Smart factor, Novelty, Value added

Soyumm

 Endorsed brand  Soy Food Brand  Image Driver  Soy Equity  Credibility, Recognition, Heritage  Approachability  Health Equity

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Breakfast Main meals Indulgence Snacks

Product Categories envisaged : fortified healthy edible oils ; snack foods ; milk & fruit beverages ; intermediates (ready to use)

Nutrela Meal Clock

Nutrela N’rich Soyumm Soyumm Soyumm

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Nutrela Brand Portfolio- The Journey

Premium & Exciting High on Health Moderate on Health Regular

Protein drink Soya Granules, Chunks & Flour RTE Snacks Premium Oils Crackers Soya Nuts Milk Beverages Margarine Smoothies & Yoghurts Olive Oil Nutrition Bars

New initiatives continued…

Extending Oil Portfolio Backward Integration Potential avenues

• Entry into Rs. 120 bn Mustard Oil market
• Capacity ramp-up to 850 TPD.
• Target 20% Market Share.
• Palm Plantation.
• Contract Farming.
• Emerging Biofuel opportunities.

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Ruchi Soya…

…with,

• Scale comparable to any global play
• Integrated operations
• Strong stable of branded portfolio
• Sufficient funds availability
• Professional management
• And aggressive growth plans

… is set to redefine the traction

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Disclaimer

Statements in this presentation describing company’s

• bjectives,

expectations or predictions may be forward looking within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed in presentation,depending upon circumstances.Important factors that could influence company’s operations include demand and supply conditions in the market which affect the selling prices of finished goods, input availability and prices, change in government regulations, tax rates, global and internal economic developments and other factors such as litigation and industrial relations.

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Thank you

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