1

The Flavour of IndiaBuilding

Sustainable Growth

on

Taste

September 29, 2005Mumbai

2

Index

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

3

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

4

Company snapshot

Global Presence

Subsidiaries in US and UK

Rice polishing mill in UK

Joint Venture & Plant in UAE

Global Brand

Strong flagship brand “Kohinoor”

Supplies to 57 countries

Distributors in 46 countries

Strong Distribution

174 distributors worldwide

475 stockists

240,000 retailers

Financials

Total Revenue – Rs 5,079.8mn

Net Income – Rs 154.8mn

EPS – Rs 7.9

Incorporated in 1989 Market leader

Became a listed company in 1994 State-of-art manufacturing

Indian Presence - 3 production facilities in Amritsar, Murthal & Bahalgarh

5

Emerging global food company

Market leader with a 35% share in the $ 100mn domestic branded basmati rice industry

(Source : AMGF Brand Study - Ernst & Young 2004)

Industry Trendsetter

Introduced branding in the Indian basmati marketCreating Organized distribution networkCreating smaller and attractive packagingBrought technological innovation; imported plant and machineryPrint advertising and celebrity endorsing of products Introduced Contract Farming of basmati paddy

Premium quality food offerings around the world

6

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

7

Well diversified revenue streams

47.1%

1.8%

51.1%

Branded Basmati RiceUnbranded & Commodity SalesFood

Businesswise contributionSpectrum of Business

Branded Basmati Rice

Food

Unbranded & Commodity Sales

Focus Segments

Enhanced focus on branded business

Branded Sales up by 33% at Rs 2477mn in FY’05Branded Basmati sales increased by 31.5% to Rs. 2,386mnFood business grew by a robust 93% to Rs. 91mn

8

Moving up the value chain

BRANDED BASMATI RICE

Up by 32%

Focus on branded sales vis-à-viscommodity & unbranded sales

BRANDED FOODUp by 83%

BASMATIRICE

(Including Commodity & unbranded sales)

9

Branded Basmati Exports growing at a 2 year CAGR of 92.2%

742.7

285.0201.0

0100200300400500600700800

FY'03 FY'04 FY'05

1,199.4

1,528.7 1,643.0

0200400600800

10001200140016001800

FY'03 FY'04 FY'05

Branded Basmati – Domestic Branded Basmati – Exports

Growth drivers include Growth drivers include

Changing consumption patterns+

Organized retail+

Rising disposable income

Mill in UK with a capacity of 28,800 MTA

+Branding and marketing in

North America, UK, EU & Saudi Arabia

10

Wide Distribution Network- Vast Reach

Own distribution network in 46 countries to cater to the needs of the customer faster

High global market penetration - Internationally retailed in 25,000 outlets such as Harrods, Costco, TESCO, Tiger Brands International etc.

Pan Indian distribution setup- 129 distributors, 475 stockists & 215,000 retailers across the country

Own offices in Delhi, Mumbai and Bangalore

11

Well planned expansion into high margin RTE segment

SOL ventured into RTE foods in FY’03 in both domestic and overseas markets

Synergic move to leverage ‘Kohinoor brand strength’, ‘marketing capabilities’ and ‘global distribution network’

Tremendous response - Sales of Rs 91mn in the second year of operation

Bahalgarh plant with a capacity of 50,000 meals a day has been conceptualized and conceived with a view of serving the most discerning consumers and marketers around the world

28.3 21.6

64.9

26.1

010203040506070

FY'04 FY'05

Exports Domestic

Over 100 variants

Exports to 15 countries

YOY growth of 83%

12

Strong global & domestic distribution associations

Products placed in more than 15 countriesOffers a diverse range of value added authentic Indian food products Number of people -

Ready to Eat Categories

– Rice & Spice

– Cook-in Sauces

– Cooking Pastes

Association with leading food companies, mainstream retail chains and prestigious institutional buyers– Heat & Eat Curries

– Heat & Eat Desserts

– Rice & Curry – Ready Meals

– Rice Treat

– Chutney

Ready to Eat Categories

TESCO, U.K. Somerfield, U.K.Coles, AustraliaWoolworth, AustraliaTiger Brands, South AfricaAmway India EnterpriseMalaysia AirlinesJapanese Chains

Entry to TESCO has given a tremendous boost to the promotion of the products in the mainstream market of UK and rest of EU

Costco, CanadaBJ’s, USAWhole Food, USASuper Y, USAOcean State Jobbers, USAIGA Sobys, Canada7/11 & Carrefour SingaporeMustafa, Singapore

13

Fall of 35% YoY in unbranded & commodity sales

Reduced focus

3,138.63,451.9

2,559.1

0500

1000150020002500300035004000

FY'03 FY'04 FY'05

Commodity sales reduced by 18% YOY from Rs 2,182.4mn in FY’04 to Rs1,791.8mn in FY’05

Unbranded Sales fell by 40% YOY to reach Rs 767.2mn in FY’05

Fall of 26% YoY in unbranded & commodity sales

14

Branded Sales increased to 49.2% of sales

49.2%

35.1%30.9%25%

30%35%40%45%50%55%

FY'03 FY'04 FY'05

Falling share of commodity & unbranded sales in total revenues

69.1%64.9%

50.8%40%

50%

60%

70%

80%

FY'03 FY'04 FY'05

Increased share of Branded Sales in total revenues

15

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

16

State-of-art manufacturing and consistent quality

Production Facilities

50,000 Meals/ Day 4 MT/Hour36 MT/HourCapacity

206,571 476,8471,285,020Area (Sq. Ft.)

Bahalgarh AmritsarMurthal

State-of-art fully automated plants in two key Basmati rice producing states, Haryana and Punjab. Rice-processing mill in Felixtowe, UK with a capacity of 8 MTPH Food processing facility in Bahalgarh for development of innovative, healthy, nutritious food products.

HACCP certified ISO 9001:2000 certifiedUS-FDA and EU-FSA compliantKosher CertifiedBritish Retail Consortium

Commitment to global quality standards

Unbeatable locational advantage

17

Global Infrastructure

Overseas Operations

S.O.L. Inc., USA – Wholly owned subsidiaryIndo European Foods Ltd., UK - Wholly owned subsidiaryRich Rice Raisers Factory L.L.C., Dubai – Joint Venture

Domestic Operations

Credible marketing organization Own Offices in Mumbai and Bangalore

18

Impressive Client Marquee

19

Continuous Innovation

Focus on Research & Development of new food categories targeted at the consumers & new technologies available to increase production

R&D Centre located at Murthal facility in Haryana

Manned by highly qualified team of food technologists, stylists and researchers

Supplemented by the marketing services department for critical information about the changing consumer preferences

20

Awards and Recognition

APEDA Award for best basmati rice export performance in the last 13 years National Award for exceptional quality and best export performance in agro products from the Government of IndiaThe prestigious “Brand Equity” Award from the Ministry of Commerce, Govt. of India and many more“Trend & Innovation Award” for its Kohinoor Rice & Curry range of ready meals at SIAL 2004, the world’s second largest food fair. SOL’s food stall has been rated as 3rd Best Selling amongst participants from 108 countries in the 2005 World Exposition, held in Aichi, Japan.Award from World Economic ForumNiryat Shree Award from the Government of IndiaUdyog Ratan from Punjab Government

21

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

22

Huge potential in branded basmati market

Global Region-wise export market for BasmatiGlobal production of basmati -2,300,000

MTA

India has a 74% share of the total production

Monsoon & other Climatic conditions has no major impact on production

50,000

200,000

500,000

50,000

0

100000

200000

300000

400000

500000

USA Europe MiddleEast

RoW

Domestic

Size of the domestic market - 900,000 MTA amounting to $ 300mn

Branded market – Just 25% of the domestic market valued at $ 100mn

Figures in MTA

No Global Competition for “Kohinoor”

23

RTE segment to grow at 200% CAGR over next 2 years

Enormous PotentialStrong FundamentalsIndia is the 3rd largest food

producer in the world

Shift in consumption patterns

Opportunity to overcome inefficiencies in supply chain

Value added ready to eat market to expand exponentially

Increasing export potential for ethnic Indian foods

Enhance profitability through improved efficiencies

Size of Global RTE Market –

Food industry to grow to $ 112bn; value added foods pegged at $ 56bn by 2005

Ready-to-eat market (RTE) to grow to $ 220mn by 2010

McKinsey estimates the CAGR in RTE domestic market to be 200% over next 2 years

Domestic market estimated at $ 22mn in 2006

24

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Growth Initiatives

Financial Review

5

6

25

UK mill to provide access to large retail chains in Europe

Branded Basmati - Exports

Major breakthrough in the UK market by entering into a tie up with TESCO, the largest retail chain of UK to sell Kohinoor Basmati Rice

Other Major breakthroughs in mainstream markets:

FY'05 Seven Eleven, SingaporeFY'05Coles & Woolworth, AustraliaFY'05Hankyu, Daimaru, Takashimaya, JapanFY'05Costco, CanadaFY'06Somerfield, UK

Commenced commercial operations at the rice mill in UK

Targeting 16% share of the UK, Europe & US market by the end of FY’08

Finalizing an alliance with a leading business enterprise of Saudi Arabia, to market its range of Basmati rice

26

Strategic co-promotions

Branded Basmati - Domestic

Executed strategic co-promotions with leading FMCG brands & corporate houses in the domestic market like Indian Oil Corporation, Coke, and Duncans Tea

Entered into a co-promotion with Sandesh group of publications, publishers of the leading newspaper from Gujarat, for promotion of its Kohinoor Basmati rice

Over the years, SOL has been consistently adding new markets anddistributors to its list

Conducted an extensive advertising campaign to promote ‘Trophy Gold’ Basmati rice. Started supplying ‘Trophy’ to Pizza Hut & KFC outlets

Targeting a Market Share of 40% by 2007 in the domestic market

27

Creating waves in mainstream markets worldwide

Packaged Foods

Entered into a tie up with TESCO, UK for 3 new food product lines

Excellent response in the first phase launch of RTE Curries in South Africa; Tie-up with Tiger Brands International

Entry of Kohinoor Heat & Eat Curries, Rice & Curry in Coles and Woolworth, two largest retail chains of Australia

Creating waves in Japan mainstream chains of Japan, Hankyu, Takashimaya and Daimaru

Amway India selling RTE foods via its direct sales distribution channel in India - 1st order of 79,000 pouches executed

Entered strategic co-promotions in the domestic market for Heat & Eat Curries with Pizza Hut and Malaysian Airlines

28

Foray into the Frozen Food business

Packaged Foods

Set up an independent food division to look after the sales and marketing of new range of RTE products

Increasing its product basket by diversifying into the Frozen Food business. Placed orders for state-of-the-art machinery

Planning a capacity expansion in the food plant from 50,000 to 75,000 meals per day along with expansion of its portfolio of products

Constantly looking at enhancing its portfolio through mergers & acquisitions

Strengthening the Research & Development Team

29

Business Profile

Core Competencies

Introduction

Industry Overview

2

3

1

4

Initiatives

Financial Review

5

6

30

Branded sales contribute almost 50% to revenues

Revenues

4,539.0

5,321.85,066.1

4000

4500

5000

5500

FY'03 FY'04 FY'05

Revenues growing at a 3 year CAGR of 13% from Rs 3,504.8mn in FY’02 toRs 5,066.1mn in FY’05

Branded Basmati sales increased by 31.5% to Rs. 2,386mnFood business grew by a robust 93% to Rs. 91mn

Branded sales increased at a CAGR of 28% over the last 3 years from Rs1,315.4mn in FY’02 to Rs 2,476.7mn in FY’05

1,400.4

1,861.5

2,476.7

0

500

10001500

2000

2500

FY'03 FY'04 FY'05

Branded Sales

31

Operating margins increase to 7.5%

Operating Margin

5.9% 6.1%

7.5%

0.0%

2.0%

4.0%

6.0%

8.0%

FY'03 FY'04 FY'05

The EBIDTA margin increased from 6.1% in FY’04 to 7.5% in FY’05 due to favorable product mix shift

Net Profit increased by 19.3% to Rs. 154.8mn in FY’05 as compared to Rs. 129.8mn in FY’04 due to increase in operating profit margins and better working capital management

Net Margins increased from 2.4% in FY’04 to 3.1% in FY’05

EPS increased to Rs 7.01 from Rs6.62 in FY’04

94.9129.8

154.8

0

50

100

150

200

FY'03 FY'04 FY'05

Net Profits

32

Shareholding Pattern

26.86%

0.02%

44.12%11.47%

17.54%

Promoters FIIIndian FI Corporate BodiesPublic & Others Large FII Holding

Aranda Investments – 6.28%

The India Fund Inc. – 5.42%

Citigroup – 5.37%

33

Thank You