RUCHI SOYA INDUSTRIES LIMITED -CP-USIV.pdfNote : Consolidated Edible oil and Soya businesses of...
30
RUCHI SOYA INDUSTRIES LIMITED CORPORATE PRESENTATION
Transcript of RUCHI SOYA INDUSTRIES LIMITED -CP-USIV.pdfNote : Consolidated Edible oil and Soya businesses of...
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
3
ABOUT RUCHI SOYA INDUSTRIES (RSIL)
4
Overview of Ruchi Soya
One of the largest agribusiness companies in India, with annual turnover of over US$2.7bn in 2008
The largest producer and supplier of Vegetable Oil and Soya Food in India
Instrumental in India’s Soya Revolution
Leading manufacturer of high quality edible oils, bakery fats, and Soya foods
Business Mix
67%
21%
9%3%
Edible Oil
De Oiled Cakes DOC)
VanaspatiOthers
5
Despite commodity cycles
International prices of major edible oils US$/MT
6
…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.
* FY 08 fig. are unaudited.
0
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
* 0
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%
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 2.89 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
8
Dominance across segments
Ranking
Industry is conducive toRuchi becoming anaggregator Industry fragmented and
inefficient
Virtual absence of integrated players
#1 #1 #1 #1 #1
RSIL Market Share
13%
17%20%
25%28%
0%
5%
10%
15%
20%
25%
30%
Edible Oil Palm Oil Branded Oil DOC Soya Oil
9
OVERVIEW OF INDIAN EDIBLE OIL INDUSTRY
10
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
11
Edible oil consumption – moving up
Total Edible Oil Consumption- in Mn Tonne
1000510720 11266
12280 12510
0
3,500
7,000
10,500
14,000
2002-03 2003-04 2004-05 2005-06 2006-07
Per Capita oil consumption- in Kg.
9.44 10.02 10.4311.16 11.48
0
2
4
6
8
10
12
14
2002-03 2003-04 2004-05 2005-06 2006-07
Consumption Pattern
Palm Oil32%
Rapseed Oil17%
Soyabean Oil20%
Cottonseed Oil7%
Others24%
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
12
…and move up even further
6
10
12
16
21
6 6
8
10
13
1
4 4
6
8
0
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
13
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 owned by different entities
Consolidation imminent in the Indian industry Better capacity utilization Funds for higher investments Well equipped to service the market
14
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 Favoring Packaged Oil
Industry-wide branded edible-oil sales expected to grow at
15% annually over the next few years versus 6% annually in the
last few years
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
16
Ruchi Soya – right up there
17
RSIL’S COMPETITIVE POSITIONING
18
Asset Investment ahead of time…
Expansion – Multiple increase in capacity in 6 years
6 X14024TSP
4 X470112Vanaspati / bakery fats
12 X2112180Refinery
5 X2893600Solvent Extraction
Multiplier20082002Capacities (‘000 MTPA)
19
Strategically located Plants…
Indore
Shriganganagar
ShujalpurKota
Gadarwara
Jabalpur
NagpurPatal Ganga
Chennai
Mangalore
Haldia
Kandla
Crushing
Refining
Ruchi balances proximity to raw materials
(cultivating states and ports) with proximity to
markets
BaranGuna
20
From supply chain to manufacturing
Share of Manufactured products up from 46% to 76% in 5 years
Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in 2006.
* FY 08 fig. are unaudited.
Sales Break up
0
20,000
40,000
60,000
80,000
100,000
120,000
FY03 FY04 FY05 FY06 FY07 FY08*
Rs.
Mns
Manufacturing supply chain
21
Strong Brand portfolio provides an edge
Well-established branded portfolio
Nutrela: A premium brand positioned on health platform with addition of vitamin A,D & E
Ruchi Gold / Ruchi Star: A mass segment brands
Sunrich / Mahakosh / Mandap: “Fighter brands”
Increased focus on healthy food products – “N’rich”
22
… which is reflected as
Note : Consolidated Edible oil and Soya businesses of Ruchi Group into Ruchi Soya Industries Ltd in 2006.
* FY 08 fig. are unaudited.
Share of Branded sales in Total sales grew from 19.6% in FY01 to 29.6% in FY08.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000R
s.M
ns
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08*
7 year CAGR 30%
Branded Sales
23
Strengthening leadership
ROCP – Refined Oil in Consumer Pack
Leading the market with widening gap
ROCP market share %(volume)
20.819.6 19.7
15.0 14.412.7
11.6 11.4 12.0 11.3 12.310.2 10.3 9.7 9.4 9.5 9.7
18.5 18.6 19.017.5 17.8 18.1 18.7 19.4 19.6
14.716.2 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
24
Strengthening leadership
ROCP – Refined Oil in Consumer PackSource:AC Nielsen
Leading the market with widening gap
ROCP market share % (value)
17.4 17.4 17.816.3 16.6 16.4 16.9 17.5 17.8
18.717.5
19.2
16.0 16.1
9.4 9.4
16.016.816.0 16.2
16.616.2 15.9 15.7
14.9 15.0
9.4
13.212.0 11.9 12.3 11.6 12.6
10.3 10.49.6
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
25
Reflecting in numbers…
Performance reflects the journey
* FY 08 fig. are unaudited.
56%157422%1007828PAT
59%248431%15641196PBT
44%428528%29822338EBITDA
28%10999814%8625575404Net Sales
Rs.Mn Rs.MnRs.Mn
% Increase FY 2007-08*% Increase FY 2006-07FY 2005-06
26
THE WAY FORWARD
27
New initiatives…
Scale-up the Branded Portfolio
Extending Oil Portfolio
Backward Integration
Potential avenues
• Aggressive Marketing.
• New Product launching.
• Tie-up with Organized Retailers.
• Entry into Rs. 120 bn Mustard Oil market
• Capacity ramp-up to 1000 TPD.
• Target 20% Market Share.
• Palm Plantation.
• Contract Farming.
• Emerging Biofuel opportunities.
28
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
29
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.
30
Thank you
