corporate presentation november 2009 - … meet/100368_20091130.pdf¾th l t d d edible oil seed...

RUCHI SOYA INDUSTRIES LIMITED

CORPORATE PRESENTATION

November 2009

Business Profile of Ruchi Soya

Business Opportunity

Where are we placed?

What differentiates us besides scale?What differentiates us besides scale?

Way forwardWay forward




What differentiates us besides scale?

Way forward


Way forward

Profile of Ruchi Soya

One of the leading agribusiness companies in India, with annual One of the leading agribusiness companies in India, with annual Vanaspati

8%

Others6%

Product Mix (FY 09)

p ,turnover of over US$2.4bn in FY09.

Th l t d d

p ,turnover of over US$2.4bn in FY09.

Th l t d d

Edible Oil

Seed Extraction

22%

8%

The largest producer and supplier of Vegetable Oil and Soya Food in India.

The largest producer and supplier of Vegetable Oil and Soya Food in India.

64%

Instrumental in India’s Soya Revolution.

Leading manufacturer of high

Instrumental in India’s Soya Revolution.

Leading manufacturer of high

Installed Capacity:-

Crushing : 3.8 MMT

Installed Capacity:-

Crushing : 3.8 MMTLeading manufacturer of high quality edible oils, bakery fats, and Soya foods.

Leading manufacturer of high quality edible oils, bakery fats, and Soya foods.

g

Refining : 2.2 MMT

Vanaspati : 0.5 MMT

g

Refining : 2.2 MMT

Vanaspati : 0.5 MMTVanaspati : 0.5 MMTVanaspati : 0.5 MMT

4




What differentiates us besides scale?What differentiates us besides scale?






Way forward


Way forward

Growing edible oil consumption in India

Total Edible Oil Consumption‐ in Mn Tonne Per Capita Oil consumption‐ in Kg.

11.412.3 12.5 13.0

14.8

10.0

12.0

14.0

16.0

10.5211.16 11.17 11.40

12.78

8 00

10.00

12.00

14.00

2.0

4.0

6.0

8.0

2.00

4.00

6.00

8.00

0.0

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09E

0.00

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09E

Source‐ Industry

Expected to go up to 21 MMT by 2015.

Steady growth over a period of time.

7

Increasing edible oil import

6 3

8.5

7.0

8.0

9.0

0

5.5 5.45.6

6.3

4.0

5.0

6.0

Others

Soyabean Oil

MT

3.2 3.03.7

5.3

7.0

1.0

2.0

3.0 Palm Oil

In M

M

0.0

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09E

Source‐ Industry

Domestic demand‐supply gap increasing‐ met by importPalm’s share in total import is growingp g g

8

Growing branded sales

Factors Driving the Shift

I i tt ti t Increasing attention to health and hygiene

Industry-wide branded edible-oil sales expected to grow at 15% annually over the next few

Increasing Presence of Organized Retail Channel

years versus 6% annually in the last few years

Increasing Affordability

Increased media penetration leading to improved awareness among consumers

9

Changing consumption pattern

2009(E)2006

Palm26%

Oth

Others51%

Palm47%

Others39%

Soya23% Soya

14%

Although Palm’s share is growing, other oils contribute to 40% of total demand even now.

10




What differentiates us beside scale?What differentiates us beside scale?


Ruchi Soya has come a long way…

Aggregator in highly fragmented edible oil business, with presence across value chain from supply chain to manufacturing to branding.

Largest player in India’s Branded Palm oil category and one of the large players in Branded Edible Oil under Refined Oil in Consumer Pack (ROCP) t(ROCP) category.

Over 2.2 MMTPA of refining and over 3.8 MMTPA of crushing iti d t t i l ti (FY09) L t I I dicapacities spread over strategic locations (FY09) - Largest In India.

Distribution reach covering over 6,26,000 retail outlets.

Strong brand portfolio of Nutrela, Ruchi Gold, Mahakosh, Ruchi Star, Sunrich etc.

13

Where are we today?

Dominance across

25%30%

RSIL Market Sharesegments

Industry is conducive to11%

17%

22%

15%

20%

25%

yRuchi becoming anaggregator

Industry fragmented

11%

0%

5%

10%

y g

Virtual absence of integrated players

Edible Oil Palm Oil DOC Soya Oil

14

Capacity creation ahead of competition...

MTPD Capacity Crushing Refining

Ruchi Soya 12,700 7,370

Adani Wilmar 5 675 3 430Adani Wilmar 5,675 3,430

KS Oils 4,800 1,800

Guj. Ambu. Exp. 3,300 1,200

Sanwaria Agro 3 250 300Sanwaria Agro 3,250 300

15

Source- Data available in Public domain

Over 2X nearest competition

...with strategically located plants...

R hi b l Ruchi balances proximity to raw materials (cultivating states and ports) with

1

2

74

states and ports) with proximity to markets

35

Manufacturing locations:-12 10

8

13

11

6

14

9

Manufacturing locations:15

1. Jammu2. Ganganagar3. Baran

10. Gadarwara11. Haldia12. Manglia13

16

Crushing

4. Kota5. Guna6. Kandla7 Sh j l

g13. Nagpur14. Washim15. Daloda16 P t l

1817 Refining

7. Shujalpur8. Jabalpur9. Piparia

16. Patalganga17. Mangalore18. Chennai

Map- not to scale

16

...which is reflecting in changing mix

Sales composition

140000

Manufacturing Supply chainSales composition

23%23%

100000

120000

lions

77% 77%

29%32%

40000

60000

80000

Rs. i

n M

il

54%

71% 68%77%

46%

0

20000

40000

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

FY05 FY06 FY07 FY08 FY09

y

17

Strong brand portfolio...

Well-established branded portfolioWell-established branded portfolio

Premium Brands

p

Nutrela: A premium Umbrella brand positioned on H lth d W ll l tf

p

Nutrela: A premium Umbrella brand positioned on H lth d W ll l tfHealth and Wellness platform.

Ruchi Gold / Ruchi Star: Mass segment brands

Health and Wellness platform.

Ruchi Gold / Ruchi Star: Mass segment brands

P l B dSunrich / Mahakosh / Mandap: “Fighter brands”Sunrich / Mahakosh / Mandap: “Fighter brands”

Popular Brands

Increased focus on healthy food products – Nutrela N’richIncreased focus on healthy food products – Nutrela N’rich

18

...resulting in leadership position...

Market share of top 5 Players in Consumer Pack category

VolumeValue

YEC04

YEC05

YEC06

YEC07

YEC08

YEC04

YEC05

YEC06

YEC07

YEC08

100 100 100 100 100 100 100 100 100 100

Ruchi Soya 18.1 16.6 17.3 17.5 17.3 20.2 18.8 18.6 18.9 18.2

Adani Wilmar 16.3 16.4 17.3 16.1 16.5 16.0 16.2 17.1 15.6 15.4

Cargil 14.9 16.8 13.1 11.8 10.2 14.5 16.3 12.8 11.6 9.9

Agro Tech 9.7 8.2 7.2 6.9 6.3 8.8 7.4 6.8 6.1 5.2

on sustained basis.

Kaleesuwari 8.5 7.6 6.9 6.8 6.7 8.4 7.5 6.8 6.4 6.5

19

Source- AC Neilson

...and sustained growth momentum

Branded Sales

32,181

37,196

30,000

35,000

40,000

18,039

22,789

20,000

25,000

30,000

Rs.

Mns

8,662

5,000

10,000

15,000

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

0FY05 FY06 FY07 FY 08 FY09

Ruchi Soya Industries Ltd in 2006.

Share of Branded sales in Total sales grew from 22% in FY05 to 30% in FY09.20

We see opportunities in adversities...

Strong Risk Management

Proactive Business Responses

Cost Rationalisation and Value enhancement initiatives

Ability to spot business opportunities to grow

Creation of capacities for future

23

Despite volatile commodity cycles2000

US$/ MT

1600

1800

2000

1000

1200

1400

Rape

400

600

800 Soya

Palm

0

200

98 99 00 01 02 03 04 05 06 07 08 09

Rape - Crude, fob RotterdamSoya - Chicago Soybean Oil Futures Palm - Malaysia Palm Oil Futures

Apr‐

9

Apr‐

9

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

Apr‐

0

24

…we have grown consistently

120,000

140,000

Mn 80,000

100,000

Rs.

M

40,000

60,000

0

20,000

,

N C lid d Edibl il d S b i f R hi G i R hi S I d i L d i 2006

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY 09


25 Maintained topline growth

... and has never been in red

1,600

1,800

1,000

1,200

1,400

Mn

600

800

,

Rs.

M

0

200

400

N C lid d Edibl il d S b i f R hi G i R hi S I d i L d i 2006

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY 09


26 made profit even in toughest cycle

Ever toughest cycle...2000

US$/ MT

1400

1600

1800

800

1000

1200Rape

Soya

200

400

600 Palm

0

Apr‐9

8

Apr‐9

9

Apr‐0

0

Apr‐0

1

Apr‐0

2

Apr‐0

3

Apr‐0

4

Apr‐0

5

Apr‐0

6

Apr‐0

7

Apr‐0

8

Apr‐0

9

Rape - Crude, fob RotterdamSoya - Chicago Soybean Oil Futures Palm - Malaysia Palm Oil Futures

Rapeseed Oil fell 58% from its peak of $1736 to $732 in 8 month.

Soya Oil fell 52% from its peak of $1414 to $681 in 6 month.

27

Palm Oil fell 60% from its peak of $1096 to $433 in 5 month.

Rather created capacities in these downturns

1998 ‐ 2002

F TFrom To .

Crushing : 0.6 MMTPA 0.6 MMTPA

Refining : 0.1 MMTPA 0.3 MMTPA

2008 2009

g

Vanaspati : 0.05 MMTPA 0.11 MMTPA

2008 ‐ 2009

From To .

Crushing : 2.9 MMTPA 3.8 MMTPA

Refining : 2.1 MMTPA 2.2 MMTPA

Vanaspati 0 5 MMTPA 0 5 MMTPA

28

Vanaspati : 0.5 MMTPA 0.5 MMTPA

Business back on track...

H1 FY 10* H1 FY 09* YoY growth FY 09

Rs. Mn Rs. Mn Rs. Mn

Sales & Other Income 63004 53614 18% 121675

EBITDA 2329 2111 10% 2919

PAT 984 769 28% 932

* Figures for the half year are un‐audited.

31 Worst is behind us…

Way forward !

• Increasing CPO refining capacity by 1 MMTPA by 2012.

• Increasing Mustard seed processing capacity to 1 MMTPA • Increasing Mustard seed processing capacity to 1 MMTPA

by 2012.

• Growing Branded portfolio sales at 30% CAGR.

• Higher capacity utilization of production facilities, Cost

optimization and Improvement in efficiencies.

• Palm plantation Domestic and International• Palm plantation- Domestic and International.

32

Ruchi Soya…

• Scale comparable to any global play

• Integrated operations

St t bl f b d d tf li• Strong stable of branded portfolio

• Sufficient funds availability

• Professional management

• And aggressi e growth plans• And aggressive growth plans

33

Disclaimer

Statements in this presentation describing company’s objectives,

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

h h ff h ll f f h d d l b lwhich affect the selling prices of finished goods, input availability

and prices, change in government regulations, tax rates, global and

i t l i d l t d th f t h liti tiinternal economic developments and other factors such as litigation

and industrial relations.

34

Thank you

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