RUCHI SOYA INDUSTRIES LIMITED CORPORATE PRESENTATION

Transcription

1 RUCHI SOYA INDUSTRIES LIMITED CORPORATE PRESENTATION

2 ABOUT RUCHI SOYA INDUSTRIES (RSIL) OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY RSIL S COMPETITIVE POSITIONING THE WAY FORWARD 2

3 ABOUT RUCHI SOYA INDUSTRIES (RSIL) 3

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

5 Despite commodity cycles International prices of major edible oils US$/MT 5

6 We have GROWN consistently Consistent revenue growth and has never been in red NET SALES PAT 120, Rs.Mns 100,000 80,000 60, year CAGR 24% Rs.Mns year CAGR 25% 40, , FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in

7 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 7

8 Dominance across segments RSIL Market Share 30% 28% 25% 25% 20% 20% 17% 15% 13% 10% 5% 0% Edible Oil Palm Oil Branded Oil DOC Soya Oil Industry is conducive to Ruchi becoming an aggregator Industry fragmented and inefficient Virtual absence of integrated players 8

9 OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY 9

10 Indian Oilseed Sector 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 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 Source: Oil World

11 Edible oil consumption moving up Total Edible Oil Consumption- in Mn Tonne Per Capita oil consumption- in Kg. 14,000 10,500 7,000 3, Others 24% Consumption Pattern Palm Oil 32% 25% 20% 3 Year CAGR 20% 15% Cottonseed Oil 7% 10% 5% 4% 8% 10% -1% Soyabean Oil 20% Rapseed Oil 17% 0% -5% Palm Oil Rapseed Oil Soyabean Oil Cottonseed Oil Others Source : Industry 11

12 and move up even further In MMT 25 Total Demand Domestic Oil Supply Total Edible Oil Imports E 2015E Source : Rabo Bank, Industry Over 1/3rd of demand met through imports 12

13 Industry need for consolidation Fragmented and Inefficient industry: Oil mills, 600 Solvent extraction units,over 650 refining units and 250 vanaspati units More than 50% of the players with output less than 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 owned by different entities Consolidation imminent in the Indian industry Better capacity utilization Funds for higher investments Well equipped to service the market Ruchi Soya Accounts for around 13% of Indian Edible Oil Consumption 13

14 A shift Loose to packaged Factors Driving the Shift Increasing attention to health and hygiene Increasing Presence of Organized Retail Channel Increasing Affordability Industry-wide branded edibleoil sales expected to grow at 15% annually over the next few years versus 6% annually in the last few years Government Rules Favouring Packaged Oil Source: Industry 14

15 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 15

16 16 Ruchi Soya right up there

17 RSIL S COMPETITIVE POSITIONING 17

18 Asset Investment ahead of time Expansion Multiple increase in capacity in 6 years Capacities ( 000 MTPA) Multiplier Solvent Extraction X Refinery X Vanaspati / bakery fats X TSP X 18

19 Strategically located Plants Shriganganagar Baran Kota Guna Shujalpur Indore Kandla Nagpur Patal Ganga Gadarwara Jabalpur Haldia Ruchi balances proximity to raw materials (cultivating states and ports) with proximity to markets Mangalore Chennai Crushing Refining 19

20 From supply chain to manufacturing Sales Break up 120,000 Manufacturing Supply chain 100,000 80,000 Rs.Mns 60,000 40,000 20,000 0 FY03 FY04 FY05 FY06 FY07 FY08 Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in Share of Manufactured products up from 46% to 77% in 5 years 20

21 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 21

22 which is reflected as 35,000 Branded Sales 30,000 Rs.Mns 25,000 20,000 15,000 7 year CAGR 30% 10,000 5,000 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in Share of Branded sales in Total sales grew from 19.6% in FY01 to 29.5% in FY08. 22

23 Strengthening leadership 25.0 ROCP market share %(volume) RUCHI SOYA INDS ADANI WILMAR CARGILL FOODS Leading the market with widening gap 0.0 APR07 MAY07 JUN07 JUL07 AUG07 SEP07 OCT07 NOV07 DEC07 JAN08 FEB08 MAR08 Source:AC Nielsen ROCP Refined Oil in Consumer Pack 23

24 Strengthening leadership ROCP market share % (value) 25.0 RUCHI SOYA INDS ADANI WILMAR CARGILL FOODS Leading the market with widening gap APR07 MAY07 JUN07 JUL07 AUG07 SEP07 OCT07 NOV07 DEC07 JAN08 FEB08 MAR08 Source:AC Nielsen ROCP Refined Oil in Consumer Pack 24

25 Reflecting in numbers FY FY % Increase FY % Increase Rs.Mn Rs.Mn Rs.Mn Net Sales % % EBITDA % % PBT % % PAT % % Performance reflects the journey 25

26 THE WAY FORWARD 26

27 New initiatives Leverage Organisation Strengths. Scale-up the Branded Portfolio Brand Architecture. Nutrela Meal Clock. Nutrela Brand Portfolio The Journey. 27

28 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 28

29 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 Visibility, Entry Basic Nutrition Values Volume driver N rich Endorsed brand Nutrition Equity Energy, Activeness Beverage & Snack Brand Image & Volume Driver Credibility, Recognition, Heritage Youthfulness, Premiumness, Modernity Freshness, Smart factor, Novelty, Value added Soyumm Endorsed brand Soy Equity Approachability Soy Food Brand Image Driver Credibility, Recognition, Heritage Health Equity 29

30 Nutrela Meal Clock Soyumm N rich Breakfast Indulgence Main meals Nutrela Soyumm Snacks Soyumm 30 Product Categories envisaged : fortified healthy edible oils ; snack foods ; milk & fruit beverages ; intermediates (ready to use)

31 Nutrela Brand Portfolio- The Journey Premium & Exciting RTE Snacks Crackers Soya Nuts Protein drink Nutrition Bars Premium Oils Olive Oil Smoothies & Yoghurts Moderate on Health High on Health Milk Beverages Margarine Soya Granules, Chunks & Flour Regular 31

32 New initiatives continued Entry into Rs. 120 bn Mustard Oil market Extending Oil Portfolio Capacity ramp-up to 850 TPD. Target 20% Market Share. Backward Integration Palm Plantation. Contract Farming. Potential avenues Emerging Biofuel opportunities. 32

33 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 33

34 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 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. 34

35 35 Thank you