Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
and Prosperity
Investor Presentation
The Company 03
Industry Dynamics 10
K S Oils Background 26
Manufacturing 40
The branded edible oil segment (~ 25% of the total market) is expected to
grow by 25-30% p.a. in the next few years.
Strong brands
Soya Oil,
19.40% Soya Oil,
Palm Oil, Palm Oil, 22.3%
13.80% 27.4%
Other Edible
2nd largest import bill item for India Oils - 80%
Branded
Increasing health consciousness 30%
preference for packaged products (hygiene
factors and avoidance of any adulteration) Unbranded
and low-saturated fat cooking mediums 70%
“
India accounts for 8.2% of world oilseeds output (2008-09);
6.5% of world oil meal production; 6.1% of world oil meal “
export; 5.3% of world vegoil production; 13.8% of world vegoil
imports; and 10.26% of the world edible oil consumption.
Source: Oil World
The Independent Forecasting Service for Oilseeds, Oils & Meals
Hamburg / Germany (Website: www.oilworld.biz)
India has ~ 15,000 oil mills, 711 solvent extraction units and over 585
refineries employing more than one million people.
18
16
Oil consumption (Mn. tonnes)
14
12
10
0
2005
2007
2009
2006
2008
Soybean Oil Groundnut Oil Sunflower Oil Mustard Oil Other Oils Palm Oil
Palm Oil has the highest consumption in India ~40% and is almost entirely imported. Mustard oil is the largest domestic oil and
constitutes 12% of total consumption.
India’s Per capita consumption is assumed to equal current world average of 24.5 kg per person p.a. in next 10 years. India’s total
consumption of edible oil is expected to double from current 16 Mn. Mt. to 32 Mn. Mt. by 2020.
Sr. Oilseeds/ Solvent Oil Oil - Marketable Surplus Total Total Oil
no. Extracted Oils Recovery Seeds For Crushing & Oil Marketable Availability
% Availability Surplus
Kharif Rabi
(Summer) (Winter)
I. OILSEEDS
1 Groundnut (in shell) 40 5.12 3.29 1.83 1.52 0.61
2 Soybean 17 8.50 8.50 - 7.50 1.28
3 Rape/Mustard/Toria 33 6.42 0.10 6.32 6.22 2.05
4 Sunflower 35 0.99 0.32 0.67 0.98 0.34
5 Others 2.08 1.44 0.64 1.74 0.76
SUB TOTAL 23.11 13.65 9.46 17.96 5.04
II. OTHER OILSEEDS
10 Cottonseed 12.5 9.15 9.15 - 8.65 1.08
11 Copra 65 0.66 0.66 - 0.66 0.43
SUB TOTAL 9.81 9.81 - 9.31 1.51
III. SECONDARY SOURCE 1.33
(Rice Bran, Oil Cakes and other Minor Oilseeds)
Mustard/ Rapeseed
17
Delivering Health and Prosperity • www.ksoils.com
India’s Edible Oil Consumption
Consumption Production
Consumption in India The Local Oil production
during Nov.09 to Oct.10 in India as per Trade
is estimated to be estimates will be around
~17 Mn. MT 7.88 Mn. MT
Imports
India will have to import ~9 Mn. MT to meet the
shortfall and increased demand.
The imported oils mainly constitute crude and
refined Palm oils from South-East Asia and Soya
Degummed oil from South America.
Palm oil imports accounted for ~80% in the last oil year – global sourcing at best prices helping Indian edible
oil companies fulfil the increased per capita consumption.
Groundnut west
largely consumed
in urban India, in
Sunflower
relatively small
quantity Strategic Location of KS
Oils to address mustard
cultivating / consuming
belts
Gokul Refoils Gokul Capacity of 690 MT/ day for mustard crushing
Shri Hari
Engine Established brand in Rajasthan
Industries
Acquired the brand 5 years ago; crushing capacity of
Vijay Solvex Scooter
325 MT/day
Recent entrant in crude mustard oil (third party
Adani Wilmar Fortune Kachi Ghani
manufacturing)
Mandap and Ruchi Presence in crude and refined mustard oil (third party
Ruchi Soya
Gold manufacturing)
Delivering Health and Prosperity • www.ksoils.com 21
Outlook
“ The demand for edible oils is expected to increase from current levels of 16.6
million tonnes in 2009 to 22.5 million tonnes by 2015.
-- The Solvent Extractors' Association of India
Particulars 2015
Total Demand (Million Tonnes) 22.5
Total area under Oil seeds (Million Hectares) 30
Yield (Tonnes/ hectare) 1.3
Production of Oil seeds (Million Tonnes) 42
Domestic supply of edible oils (Million Tonnes) 12.5
India’s dependence on imports is expected to increase to the extent of ~44% of its consumption
requirement. The improvement in yields and the increase in area under cultivation are expected to
ensure that domestic oilseed production is sufficient to meet only ~56% of consumption requirement.
Corn Oil 13 29 1 57
Soybean Oil 15 23 8 54
Olive Oil 15 75 1 9
Peanut Oil 19 48 33
Cottonseed Oil 27 19 54
Lard 43 47 1 9
Palm Oil 51 39 10
Coconut Oil 91 7 2
Boston
Dr K Srinath Reddy from AIIMS, renowned • The reason for the protective effect of
scientists involved in the study, says mustard oil is that it is rich in alpha
Linolenic acid which is a source of
The Promoters are currently engaged in the edible oils business only
Delivering Health and Prosperity • www.ksoils.com 28
Management Team
Name Designation Profile
He has over 20 years of experience in this
Sanjay sector and is the main driver in the Company’s
Managing Director
Agarwal expansion & growth; key person driving
backward integration.
Ex-CEO of Britannia and one of the most
Head - Marketing celebrated Marketing Guru’s in India. He
Sunil Alagh
Advisory Committee formulates the Marketing and Brand strategies
of the company.
He has experience in edible oils international
Himanshu Global Head- trade. He drives strategic new business
Gandhi Business Strategy initiatives and international foray of the
company.
BW REAL 500
sound companies
a Premier Association of Vegetable Oil Industry & Trade
Note: The Company had allotted 62,247,230 equity shares of Re. 1 each in favour of the Custodian
underlying three GDR's Issues of total USD 64 Million.
Sourcing
• The Company also does bulk sourcing of seeds from NAFED
• Bulk crude oil is either imported or sourced from Madhya Pradesh and Delhi
INR in millions
Margin
Delivering Health and Prosperity • www.ksoils.com 35
SWOT Analysis
• Management experience of decades in this business
Strengths
• Largest integrated solvent/ rapeseed crushing capacity in India
• Established brands in crude mustard oil, refined oil and vanaspati
• Efficient and flexible manufacturing facilities
• Captive power production (92 windmills - 78 MW)
• Loyal customer base
• Secure raw material supply
• Extensive distribution network
• Among the highest margin earners in the Indian Edible Oils sector
Weakness
Opportunity
• Ongoing consolidation in the • Currently limited presence in
mustard/ domestic oilseed sector West India and no presence
and conversion of unorganized
in South India
(70%) to organized market (30%)
• Continued growth in the Indian
edible oil industry fuelling need
for organic growth through
greenfield projects to tap other
cultivating regions • Competition from substitutes
• Backward integration (refined edible oil brands) for
Threats
KSOL’s refined oil products
(plantations and power
generation) and forward • Weak regulatory environment in
integration (value added products India – spurious and adulterated
for personal care and oleo oil being available in the market
chemicals)
Vanaspati
KS and KS Gold are well accepted brands in the
(KS Gold and refined oil as well as Vanaspati segments.
KS Gold Plus)
Factories
One of the most modern and integrated state-of-the-art
edible oil manufacturing plants in India
Current Capacity
Total Current
Division
Capacity
Refinery
Refining of oil refers to neutralised, bleached and de-odorised oil. The process is carried out in
vacuum at high temperatures
Vanaspati
The process involves hydrogenation of refined oil. Vanaspati obtained is filled into containers
and taken for cold room treatment where the temperature is reduced in a controlled manner
which facilitates the final finishing required for the grainy texture
Power
Captive Power production capacity of over
92 Windmills (78 MW)
The company has 1,313 Distributors and over 200,000 retailers serviced by the
company’s 275 member strong marketing team
Delivering Health and Prosperity • www.ksoils.com 49
Historical Financial
Performance
Particulars Amount
Total Revenue 10,324
EBIDTA 1,173
Interest 437
Depreciation 155
PBT 581
Current Tax 57
Deferred Tax 19
Net Profit after Tax 505
**,*** Promoters paid 50% money upfront at the time of subscription of warrants.
Delivering Health and Prosperity • www.ksoils.com 55
**** Paid 25% money upfront at the time of subscription of warrants.
Strategy &
Growth Initiatives
Increase • market share from the current 12.5% to 20% in the Mustard
segment
• proportion of retail packs
Final Distribution
Farms
REPORT
Delivering Health and Prosperity • www.ksoils.com 61
Indonesia