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 is a leading branded edible oil supplier. Nutrela Soyumm (Soyabean Oil), Ruchi
Gold (Palmolein Oil), Mahakosh, Sunrich (Sunflower Oil) and Mandap (Mustard Oil)
and new healthy oil variants like Nutrela Vitamin Sunflower oil and Nutrela Groundnut
oil
make
Nutrela
a
trusted
option
in
edible
oils.
Superior procurement and trading skills, continuous innovation, an endeavor to meet
consumer needs and stringent quality control standards have enabled Ruchi to emerge as
a
highly-respected
and
admired
Indian
company.
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.

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.
Despite all odds, Ruchi is now a leading player in the country in edible oils, soya foods
and processed foods categories. This is largely due to its strict adherence to quality and
continuous innovation to keep with the times. Also, Ruchi has evolved from being a large
manufacturing firm to a respected brand, keeping in line with the FMCG players. Its
Nutrela and Ruchi Gold brands have captured leading positions in the soya foods and
edible oils categories respectively. Ruchi has also ventured into other businesses like
bakery specialties, where it foresees a big potential for growth. With its innate
manufacturing and logistics advantages, and its foray into the branded sector, one only
sees immense potential for the growth of Ruchi in the future.

BRANDS
Over the years, Ruchi Soya Industries Limited has grown to become a multi-million US
Dollar company. Two of our strongest brands, Nutrela and Ruchi Gold are category
leaders.

Nutrela, the most respected soya foods brand in the country, enjoys sizeable market share.
It has enjoyed the trust of consumers for last 24 years now, and continues to expand its
range to cater to varying needs of its consumers. It has become generic to the soya
category. We have effortlessly strived to educate people about health and goodness of
soya as our firm commitment is to provide healthy solutions to the consumers.
Our edible oils brands like Ruchi Gold and Nutrela Soyumm enjoy mass acceptability
and acclaim from the people. Ruchi Gold is the leader in the palmoline category. As a
part of packaged goods thrust, Ruchi Gold was introduced in Chennai. Today, it enjoys
leadership position in branded palmoline oil category.
Mahakosh Refined Soyabean Oil is known for its purity and premium taste, its nutritional
qualities enhance its health quotient. It contains fats that may help in reducing serum
cholesterol levels and omega-3 fatty acids that protect against heart diseases.
Nutrela Soyumm ranks in one of the most popular oils in the category, and continues to
strive to reach the top position. Both brands symbolize health and quality.
We are also a leading vanaspati manufacturer with brands like Ruchi No. 1 and have also
ventured into bakery and special fats category.

MARKETING

STRENGTHS

The extensive distribution network, built over the years, is a major strength for Ruchi
Soya Industries Limited. Catering nationally through over 6.25 Lac retail stores, with 96
Company depots, over 3200 distributors and a sales staff of over 200, Ruchi has
attempted to penetrate depth wise, along with opening new markets. With its emphasis on
providing value goods to consumers, dual strategy of Ruchi on popular and premium
range works well. Ruchi Gold and Sunrich are our value for money offering but with
no compromise in quality. This positioning helps generate large sales volumes for the
products. Our Nutrela series is more premium, and offers healthy options in soya foods
and edible oils. This dual strategy is based on our cultivated understanding of the Indian
consumer
psyche.

EXPORTS
Ruchi Soya Industries Limited is the Flagship Company of Ruchi Group, a pioneer soya
processor group, which started operating back in 1972-73 and is the first exporter of
Soyabean Meal from India. Over the years, Ruchi has become one of the largest crushers
of soyabean in India and presently has installed crushing capacity of about 4.1 million
tons annually in 12 plants. Being a leading crusher, Ruchi with its annual export of about
6 lacs tons has also become one of the largest exporters of Indian Soyabean Meal
accounting for nearly 25% of the total soyabean meal from India. Soyabean meal (deoiled extractions / cake) is obtained after crushing of seed and extraction of oil by solvent

extraction process. Soyabean meal is considered as one of the most valuable raw material
for preparing poultry / aqua / animal feed in the world market as it contains a very high
percentage of protein. Ruchi produces different grades of soyabean meal viz. de-hulled,
high pro and normal FAQ varieties.
Ruchi has been able to create a strong niche in the international market for its soyabean
meal which is in high demand particularly by the quality feed producers in South East
Asia, Far East and Middle East markets.
Besides, Ruchi is also able to export high end value added products like edible de-fatted
soya flour, full fatted edible flour, soya lecithin, soya granules, soya flakes and soya
chunks etc.
All the products produced by Ruchi enjoy ready accessibility in the export market
namely, Japan, Vietnam, Indonesia, Thailand, Philippines, South Korea, Taiwan, Middle
East countries apart from Indian Sub continent countries namely Bangladesh, Pakistan,
Nepal, Sri Lanka etc.

NEW

HORIZONS

Ruchi Soya Industries Limited is exploring new horizons beyond its traditional business
interests. New initiatives like palm plantation and renewable energy sources coagulate
well with the existing business goals of the company. They have expanded our crushing
and refining capacities to remain competitive in the market.

SCOPE
According to the economic times report,
Ruchi Soya the country's largest edible oil processing company has been in the thick
of action on the bourses. Appreciating by 360% in the past one year, the stock has
outperformed the Sensex. Most of the action in the stock has occurred since July 2009.
There have been a series of developments fuelling the rally in prices. Ruchi Soya has
been reporting steadily improving performance since the past three quarters against the
same periods in the previous year. The company, which is largely into processing of soy
oil and soy products, has been on a capacity expansion drive.
Recently, it signed a memorandum of understanding with the Ethiopian government for
the cultivation of soybean and processing facilities on 61,775 acres land on a lease basis
for 25 years.
In a bid to diversify from soy oil, the company has planned capacity expansion for the
production of palm and mustard oils. It is also looking at backward integration into palm
oil plantation, resulting in better margins.
In January this year, the company acquired Gemini Edibles and Fats. This was followed
by the acquisition of Andhra-based palm oil firm Palm Tech India in February. The
company's promoters recently hiked their stake in the company to 42.24% from 36.24%.

C Sivasankaran-backed firms have also increased their stake from 6.87% to 9.52% in
Ruchi Soya. These developments further boosted investor confidence in the company.
Notwithstanding the rally in the company's stock price, there is no scope for re-rating.
The stock has only managed to recover most of the gains that were lost in 2008.
Despite the efforts made by the company to diversify into high-value branded business, it
functions as a trading company. The company earns an operating profit margin of 2-3%,
much lower than its peers like KS Oil and JVLAgro industries .
Trading at a price-to-earnings multiple of 15.4, the stock is fairly valued vis--vis its
peers. With most of the company's future plans and positive developments already
factored in the price, the upside in the stock appears limited.

OBJECTIVES
- increased efficiencies from strategic resource allocation including rationalizing
distribution networks,
- ability to maximize the brand values through increased scale as the largest edible oils
company in India, and
- ability to capitalize on market opportunities through a more professional, focused and
competitive top management team

INVESTMENT HIGHLIGHTS
From Supply chain to manufacturing
Withfive standalone port based refiners,four standalone crushing plants
and five integrated crushing and refining plants, Ruchi Soya has redesigned
its business model to increase the contribution of its
manufacturing products to 76% from 33% in a period of 6 years. Currently
the manufacturing products contributes 76% and the Company looks
forward to increase the share of manufacturing products to 90% in a span
of another 2-3 years. Over a period of 5 years the company has made significant
expansion and a multifold increase in its refining and crushing capacities
as a conscious move to redesign its business model.
During the period of 6 yrs from 2002-2008, Ruchi had undertaken
substantial expansion plans for increasing its installed capacities to meet
the ever increasing demand.
Ruchi has carved a niche for itself by creating a strong branded
portfolio. Currently focusing to capture the markets for health
and diet related pEDroducts
.Refined Palm and Soya Oil manufactured by
Ruchi has a market share of 17% and 28% respectively. Its brand Nutrela

has a market share of around 55% where as its second leading brand
Ruchi Gold is having a market share of 60% and has grown at a CAGR of
35% - 40% since its introduction. .

Competitive Prices of Indian Soya meal in the global

markets places Ruchi in a sweet spot to capture the benefit
of demand supply gap.
The demand for soya meals is expected to increase significantly as the
feeding of livestock continues to expand, especially in rapidly developing
countries. Canada alone is expected to import $300 million of
soymeal.Indian Soya meal is having wider consumer base in International
markets on account of various factors viz:
Cheaper as compared to American or Brazilian Soya meal
Has a high protein content of 48%.
Only India supplies non genetically modified soya meal while other
countries manufactures genetically modified soya meal.
As a result there is a growing demand of Indian soya mealfrom countries like
China,Indonesia,Japan,Korea.

COMPANY'S PRODUCTS PORTFOLIO

1. EDIBLE OIL:
2. Mahakosh oil:soyabean oil,sunflower oil,cottonseed,mustard
3. Ruchi gold:palmolein oil,mustardoil
4. Nutrela:soyumm oil ,mustard oil,sunflowere oil,groundnut oil
B.VANASPATI:
5. Nutrigold:Formulatedafter extensiveR&D which has a grainy
structure
6. Ruchi no 1:is hydrogenated vegetable fat
C.SOYA FOODS:
chunks ,granules,mini chunks,proflo flour

STRENGTHS:
Multifold increase in capacity over years.
Well-dispersed mix of proximity to raw materials and accessibility to the
markets through its crushing and refining units.
Has smartly moved from supply chain to manufacturing.
Has an efficient network of qualified and experienced operators and
engineers.

Has built up a strong stable portfolio of brands.

WEAKNESS:
Companys raw materials are agro based and hence subject to
volatility
in the national and international commodity markets.

OPPURTUNITIES:
Foraying into other healthy food products under the brand Nutrela.
Strengthening its leadership in the branded edible oil segments.
Setting up of commodity exchanges have provided reasonable
opportunities for the industry as well as the company to hedge and
manage the impact of price fluctuations.

THREATS:
Exposed to foreign exchange risk on account of products which are
imported and further processed before sales in the domestic markets.
Any change in Government policy with respect to edible oils /food
items
can have a major impact on the profits of the company.
The business is subject to many regulations by several authorities
which could have an adverse effect on company's business and the
results of operation.

RESEARCH METHODOGY:
PRIMARY:Ruchi soya industries was visited personally and the
information was collected from the trusted authorities.
SECONDARY:Other information was collected from the
websites,magzines,newspaperslike economic times.