ruchi soya industries limited

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
2
 Key Highlights
7
 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 Soya’s
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 India’s 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 “World’s 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 Ltd’s 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 FY07–FY13: 14%
18%
3,000 Indian edible oil:
2,697
CAGR FY07–FY13: 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%
0
FY07
FY08
FY09
FY10
FY11
FY12
FY07
FY13
FY08
FY09
FY10
FY 11
FY12
FY13
(000’MT)
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 Ltd’s 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

1
Favourable Industry Dynamics
2
Strong Brand Recognition in
India
3
Fully Integrated Operations
4
Extensive Distribution Network
in India
5
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
1
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
1
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
5
200
0
Population
400
549
467
481
6
807
630
0
GDP / capita
40
9
9
9
10
2010-11
2011-12
2012-13
25
20
15
10
5
0
Per capita consumption
Source: USDA FAS, IMF
11
5
5
5
6
6
7
6
7
6
6
7
7
7
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
0
16
4
1342
2
Indian Edible oil demand being substantially met by imports as domestic
production has lagged
Mn MT
8
1081
4
200
Total oil consumption
Source: USDA FAS, IMF
20
8
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
1
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
2
Ruchi Star – Refined Soyabean Oil
Ruchi No. 1 – Vanaspati
Page 13
3
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
4
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.
1
Cities
Jammu
Sriganganagar
2
4 3
Kota
Baran
Daloda
14
20
Shujalpur
5Guna
7
Manglia
Piparia
11
Kandla
13
6
Gaderwada
8
Washim
12
Patalganga
Durgawati
9
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
5
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
6
22.3
22.5
24.7
19.6
20
5.31
10
2
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
4
100
100
CAGR 2010- 2012: 4.6%
30
7.17
8
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!