Soya Industry

SOYA INDUSTRY OF INDIAPresented by : Sheel Kumar Hans

Contents

Soybeans - The Miracle Crop

Global Scenario

Soya Industries in Indore – The Bastion of Indian Soya

Ruchi Soya and Vippy Soya – Major Players in Soya

The Soya Revolution

Indian Scenario

Indian Soya Market

Conclusion

Soybeans... The Miracle Crop

• The soybean (Glycine max) is often called the miracle crop. It is the world's foremost provider of protein and oil.

• The bushy, green soybean plant is a legume related to clover, peas and alfalfa.

• Farmers plant soybeans in the late spring. During the summer, soybeans flower and produce 60-80 pounds, each holding three pea-sized beans.

• In the early fall, farmers harvest their crop for these beans which are high in protein and oil.

• A 60-pound bushel of soybeans yields about 48 pounds of protein-rich meal and 11 pounds of oil.

History of Soya• Soya beans were a crucial crop in eastern Asia long before written records.

• They remain a major crop in China, Japan, and Korea. Prior to fermented products such as soya sauce, tempeh, natto, and miso, soya was considered sacred for its use in crop rotation as a method of fixing nitrogen.

• The plants would be plowed under to clear the field for food crops.

• Soya beans did not become an important crop outside of Asia until about 1910. In America, soya was considered an industrial product only, and was not used as a food prior to the 1920s.

The Soya Revolution

• In early 1960s Mr. Mahadeo Shahra created awareness on the potential of soya crop amongst the farmers in the state of Madhya Pradesh in India.

• He was instrumental in bringing up a small green revolution in the state, by introducing and encouraging soyabean cultivation on a commercial scale.

• Today Madhya Pradesh is considered as soya bowl of the country, and contributes to approximately 60% of its production.

Composition of a Soybean

• In processing, soybeans are cleaned, cracked, dehulled and rolled into flakes. This ruptures the oil cells for efficient extraction to separate the oil and meal components.

• Soybean oil finds its way into food products such as margarine, salad dressings and cooking oils, and industrial products such as plastics and biodiesel fuel.

• Lecithin, extracted from soybean oil, is used for everything from pharmaceuticals to protective coatings. It is a natural emulsifier and lubricant.

• After removal of the soybean oil, the remaining flakes can be processed into various edible soy protein products, or used to produce soybean meal for animal feeds.

Major constituents of Soybean

Soya are used as following

Soya Foods• Soya Beans• Soya Milk• Tofu• Soya ProteinSoya Drinks• Meals with Soya• Soya Desserts• Soya Cheeses• Soya YogurtDairy Alternative• Anti-Cholesterol• Isoflavones• Soya Issues

Global Scenario• Soybean is one of the major oilseed crops in the world

• It is cultivated extensively in south Asian countries and U.S.A.

• Account 58% of total oilseed production in the worldSource: USDA

Global Soybean Crop Calendar

Indian Soybean Crop Calender• Mainly grown in Kharif season – Monsoon• Sowing – June – July• Harvest – October – December

• The global trade of soybean meal is about 48 million tons• The leading soybean meal producing country is US in the 1st place and Brazil, Argentina in the 2nd & 3rd place respectively• The leading soy meal exporting countries are: -

•••••

USA (82 million tons)Brazil (73 million tons)Argentina (48 million tons)China (15.2 million tons)India (11 million tons)

• The major importers of soybean meal are: -•••••

European Union (22 million tons)Central Europe (3.5 million tons)Thailand (2 million tons)South Korea (1.5 million tons)Indonesia (1.5 million tons)

Global Supply Demand Estimates

Indian Scenario

• India is 5th largest producer of soybean in the world, with average production of 10 MMT

(Million Metric Tonnes) of soybeans • Average consumption in India is 6 MMT of soybeans

• Soybean output has more than doubled in the last 10 years

• With current international prices as high as US $ 400+ per MT, exports of Indian Soymeal earning close to US $ 1.8 billion or over Rs. 10,000 crores

• is expected to reach a level of 11.4 million tons in 2011-12, making available around 3 MMT of

Soybean Meal with 4.64 MMT for exports

Production And Yield Of soyabean in India

Production of Soya Bean in India

-Madhya Pradesh -Maharashtra -Gujarat -Rajasthan -Nagaland -Uttar Pradesh -Karnataka -Andhra Pradesh

• Madhya Pradesh being the leading producing state of India contributes to around 75% of the total Indian production.

• Likewise soya beans, the rate of production of soya meal in India is on an increasing level with a production figure of 10 million tons.

Soybean Growing Areas in India

Indian soya bean market• Soya bean holds a very important position in the

Indian agriculture and economy and it has a worth of over Rs 5000 crores.

• Regarding consumption of soya bean in India, it holds the 6th position in the leading consuming countries of the total production of soya bean in India, 10-12% of it is directly consumed and the rest is crushed to derive soya meal and soya oil.

• India is one of the major exporters of soy meal to the Asian countries -South Korea, Thailand, Philippines, Japan are some of the major importers of soy meal from the country

• Soy meal accounted for 84% of the total edible oilseed meal exports from the country

• Though soya meal is not imported to satisfy the growing domestic demand, but this is not in the case of soya oil. A large share of soya oil consumed in India is imported from Argentina, Brazil and US. In fact, soya oil is not permitted to export in bulk.

• About 1 million tons of soya oil is imported which makes the availability of oil in the country at 2.5 million tons. Moreover the rate of imports is still at a rising level.

• The prices of soya bean in the Indian market are highly volatile because they depend on the prices of the international market. As reference markets, the markets at Indore and Mumbai are looked upon.

Domestic soya bean market of India

Market Influencing Factors

• Weather most importantly during the pod bearing period.

• Prices of the competitive commodities including oils.

• Movement in prices in the international market.

• Pests and diseases.

• Fundamentals of the feed sector.

• Crush margin

• Infections affecting poultry and cattle.

Potential of Soy Bean, Soy Oil andSoy Meal

• Approximately 2/3rd of India’s population is vegetarian,much of the increase in protein consumption is expected to come from a non-meat source

• Consistently rising domestic demand for edible oil ingeneral and Soy Oil in particular leading to higher imports

• Higher crush capacity utilization in the industry• Lower crop estimate but higher demand projection forSoy Bean in China

• Increased Soy Meal demand from Far East due toreduced crush in China and Japan

• Recovery of domestic and global poultry industry fromavian flu resulting in revival of demand for feed, thus Benefiting Soy Meal manufacturers; and

• Rising demand for bio-fuels

Indian Soybean Market – Way Forward

• Indian Soybean market is worth over US$ 1.11 billionor INR 5,000 crores

• India is an importer of Soy oil but exports Soy mealwhich is considered to be one of the premium soy Meals among European and Asian countries

• India’s Soy meal exports are expected to cross 50,00,000 tone mark, which is 40 per cent ahead of last season’s (Oct 2010 – Sept 2011), estimated at US$ 1.8 billion or INR 10,000 crores.

• India export approximately 56% of the total soy meal produced and has turned out to be one of the largestexporter of soy meal usually to the Asian countries

Status of Soya Bean Meal in The World

Status of Soya Bean Oil in The World

Players in Soybean Industry

Soybean seed

• Monsanto India• Mahyco• Eagle Seeds & Biotech

Soybean processing

• Ruchi soya• Adani Wilmar• Gokul Refoils & Solvent• Liberty Oil Mills• Vippy Industries• Sanwaria Agro• Murli Industries• Dewas Soya

Major trading centers of soya bean

• Indore • Ujjain• Dewas • Mandsore• Astha• Nagpur• Sangli• Kota Also, soya bean is traded in Indian commodity

exchanges namely, National Commodity & Derivatives Exchange ltd, Multi Commodity Exchange of India ltd and National Multi Commodity Exchange of India ltd and National Board of Trade, Indore.

Major Players of Soya Bean in Indore• Ruchi Soya Industry Limited

• Vippy Industries.Ltd.

• Prestige Group of Industries

• Adani Wilmar Ltd

• Gujarat Ambuja Proteins LTD

• Prakash Solvex

• Utkarsh Insdustries

• Sonic Biochem Extractions Limited

• Parekh Agro Industries Limited Indore

• Kriti Group Indore

• Khaitan Chemicals & Fertilizers Limited Indore

About Ruchi Soya

• Featuring among the top five FMCG players in India, with a turnover crossing Rs. 13,000 crores, Ruchi soya Industries Limited is the flagship company of Ruchi Group of Industries.

• Besides being a leading manufacturer of high quality edible oils, vanaspati, bakery fats and soya foods.

• Ruchi is also the highest exporter of soya meal and lecithin from India.

• Nutrela (soya chunks, granules and soya flour) is the largest selling soya foods brand in the country.

• Ruchi soya Industries Limited is listed on Bombay Stock Exchange Limited (BSE Code: 500368), National Stock Exchange of India Limited (NSE Code: RUCHIsoya) and Delhi Stock Exchange.

• Ruchi now has over 2.2 million metric tons per annum of refining and over 4.1 million metric tons per annum of crushing capacities, spread over strategic locations across India.

• During the financial year 2010-11, RSIL had registered net profit worth Rs 201.59 crore on revenue of Rs 16,702.78 crore.

• The firm is also achieve the target of 1.1-million tones edible oil exports in 2010-11 year.

About Ruchi Soya

Vippy Industry

• First processing plant was of 60 MT/day capacity and currently the combined capacity is 1800 MT/day.

• Company went in for first IPO in 1986.

• The Company has been regularly expanding, modernising and upgrading its production facilities since last 27 years as reflected in the figures below :

Year ACQUIRER Target DEAL VALUE(US$mn)

2007 Ruchi Soya Industries Limited

Mac Oil Palm Limited (palm oil unit of SICAL Logistics Ltd)

7


Soya processing, edible oil and vanaspati businesses of Madhya Pradesh Glychem Industries Ltd

N.A.

2004Ruchi Soya Industries Limited

Aneja Solvex Pvt Ltd N.A.

2002 Marico Industries Ltd

Meal Maker brand from Plastomech Ltd

0.5


Desmet Chem food Engineering from Extraction DeSmet NV

N.A.

Deals in Soybean industry

# Only RUCHI SOYA looks to be active in Deal Street

Conclusion

• Soya Bean is one of best option of protein supplement and addible oil.

• Soya Bean as a miracle crop can help Indian Economy to grow fast.

• Export of Soya Meal in 2011 is increased by 180% which is showing a big opportunity in this Industry.

• A lot of potential is there in Indore and Madhya Pradesh to grow in Soya Industry and to increase production of Soya Oil.

• Ruchi Soya is a milestone in soya industry for other companies.

Soya Industry

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