Ruchi Soya net sales up 18%

During the quarter, branded sales registered a healthy 22.95% growth from Rs. 1,374.23 crore to Rs. 1,689.59 crore
Ruchi Soya Industries Limited (Ruchi Soya) has announced its un-audited financial results for the quarter ended December 31, 2012 (Q3). As compared to the corresponding period of the previous year, net profit for the quarter rose by 105.45% from Rs. 24.05 crore to Rs. 49.41 crore whereas net sales rose by 17.56% from Rs. 6,954.29 crore to Rs. 8,175.16 crore.

During the quarter, branded sales registered a healthy 22.95% growth from Rs. 1,374.23 crore to Rs. 1,689.59 crore. Refining capacity utilization improved by 8.85% from 4,78,589 MT to 5,20,960 MT. Export of Soya Meal in value improved by 47.29% from Rs. 883.16 crore to Rs. 1,300.83 crore. Sale of Textured soya protein (TSP) stood at Rs. 28.16 crore registering an impressive rise of 43.53% from Rs. 19.62 crore during Q3 in the last fiscal.

Commenting on the performance, Managing Director, Dinesh Shahra said, “I am happy to share the healthy growth recorded by the Company during the third quarter ended December 31, 2012. Improved branded sales, better sales realization of oilseed extraction, effective control on the costs and favourable business sentiments helped us to get profit on the track. We are making our efforts to have good performance on a sustained basis in the times to come.”

Source: http://planetcorporatenews.blog.com/

Ruchi aims to turn Nutrela into Rs 5,000-cr brand in 5 yrs

Kolkata, Feb 4 (PTI) Ruchi Soya Industries today said it aims to expand the Nutrela brand five-fold to Rs 5,000 crore in the next five years.Stating that Nutrela was a small brand compared to the Ruchi brand which accounted for sale of Rs 7,000-8,000 crore, Ruchi Soya AVP Marketing Sandipan Ghosh said the company wanted to make Nutrela a Rs 5,000 crore brand in the next five years from Rs 1,000-1,200 crore now.

On reports of raids by the Mumbai income tax authorities on the group, the company did not forsee any hurdle towards its growth target. “No,” Ghosh said when asked whether the raids would have any adverse impact on growth. Ghosh said the existing business of Nutrela would grow by around 20 per cent year on year and the company planned to introduce more products.

“Currently, we are carrying out market research to enter new product categories under Nutrela brand,” he said. The brand was currently restricted to soya products, edible oil and margarine. In 2008, the company had made an attempt to foray into beverage from soya but failed to get the desired response. Ghosh said Nutrela offered high EBITA margin of 10-15 per cent for the company among other products.

Source: http://planetcorporatenews.blog.com/

Nutrela TVC

Launch of TVC and radio Jingle to tap Bengali market; veteran actor Soumitra Chatterjee to sing a jingle for the new campaign.

Ruchi Soya Industries is set to target the West Bengal market with an aggressive marketing campaign for their premium brand, Nutrela Kacchi Ghani Mustard Oil. The state accounts for over a third (around Rs 110 crore) of the Rs 300-crore mustard oil market in the country.

With the intent of reaching out to Bengali masses, the company is also planning to launch a 35-second TVC and a 25-second radio jingle this month. With the campaign, the company aims to create a bridge between the brand and true ‘Bangaliaana’, using a thoroughly Bengali concept, ‘Jagai Bangaliana’, which aims at evoking the authentic taste of food every time they use Nutrela Kacchi Ghani mustard oil.

The idea revolves around reviving and rejuvenating this ‘Bangaliaana’ and brings back the fading Bengali persona and spirit, reminding them of their roots. The campaign largely aims to reawaken authentic taste of Bengali food. It evokes the rich culture and tradition of the state and exhorting the people of Bengal to rediscover the pride of eating authentic Bengali food.

‘Bangaliyana’ is a tradition that has been passed on from one generation to the next in every Bengali family over the past century. It is a way of life as in the weekend ‘adda’, inviting friends and family to the house and discussing music, literature, politics, food, culture, history and then savouring authentic home cooked Bengali cuisine together. ‘Bangaliyana’ is also in celebrating togetherness and appreciation of Rabindrasangeet or Sumoner ‘gaan’ or Bangla ‘natok’ and even discussing Shakespeare, and most importantly how good the food was at the last brunch party.

Strengthening this connect further, the company has roped in veteran Bengali actor Soumitra Chatterjee to sing a jingle for the new radio campaign.

“We are sure that the campaign will rejuvenate the fading spirit of ‘Bangaliyana’ and the need for ‘kacchi ghani’ mustard oil as the predominant cooking medium. We are extremely excited about reviving ‘Bangaliyana’ and more so being able to make Soumitra Chaterjee partake in bringing the idea alive by singing a song for us,” said Sandipan Ghosh, Assistant Vice-President Marketing, Consumer Brands Division, RSIL.

The television and radio campaign has been conceptualized and developed by Hammer Communications in New Delhi.

The TVC and radio campaign will be simultaneously rolled out in Bengal and Assam. The 360 degree clamour marketing campaign is the company’s first campaign centred around the three-year-old mustard oil brand. Bihar and Jharkhand are next in the company’s radar.

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Source: http://www.youtube.com/watch?v=SltHF_7vYOg

Ruchi Soya in the global top 250

NEW DELHI: Country’s largest manufacturer of edible oil, Ruchi Soya has found a place in top 250 consumer products companies of the world.

It has been ranked at 175 in the top 250 consumer products companies, in the “Global Powers of the Consumer Products Industry 2012”, according to report published by Deloitte Touche Tohmatsu (Deloitte).

Only three Indian consumer products companies – Ruchi Soya, ITC Ltd & Videocon Industries Ltd have featured in the list of top 250 consumer products companies from across the world.

Ruchi Soya Industries Limited featuring among the top five FMCG players in India.

Besides being a leading manufacturer of high quality edible oils, soya foods, vanaspati, and bakery fats, Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India.

Source: http://articles.economictimes.indiatimes.com/2012-04-08/news/31308435_1_soya-foods-bakery-fats-top-five-fmcg-players
Ankesh Shahra dons the role of Director, Business Development for Ruchi Agritrading Pte Ltd. Ankesh has a background in Finance, Economics and International Trade and represents the third generation of the Shahra family that started the business conglomerate Ruchi Group. With his distinctive attributes and rich pedigree he is set to take the business in great space.

The Group has business interests across the sectors ranging from Edible oil, Soya foods, Steel, Dairy, Featuring among the top five FMCG players in India; Ruchi Soya Industries is the flagship company of Ruchi Group of Industries. A leading manufacturer of high-quality edible oils, soya food, vanaspati and bakery fats, it is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, it is the largest producer and marketer of vegetable oils and soya food, the largest oilseed crusher and edible oil refiner, the largest importer of vegetable oil and the largest exporter of soya derivatives from India. Ruchi Soya has also diversified into Renewable Energy and Plantations in the recent past.

Ankesh Shahra’s ideology is to work towards renewing, to reinterpret and reaffirm Ruchi Soya’s backwards integration strategy into agricultural plantations in Asia and Africa

RBI likely to cut repo rate, first time in nine months

MUMBAI: The Reserve Bank of India (RBI) is expected to reward the government next week for its efforts to reform the economy and bring its finances under control by announcing its first cut in interest rates in nine months.

The RBI has been growing in confidence that the government, gripped by inertia for much of last year, is finally doing its bit to lift an economy that has slumped to its slowest pace of growth in a decade.

“The government has gone ahead with all the promises it had made 3 to 4 months earlier. There have been pretty substantial measures on the fiscal deficit front,” said Samiran Chakrabarty, head of research at Standard Chartered Bank in Mumbai.

“To an extent, that will be comforting for the RBI.”

Inflation is also heading in the right direction as far as the central bank is concerned. Wholesale price inflation, the main price gauge, fell to a three-year low of just over 7 percent in December.

Since mid December, yields on 10-year Indian government bonds have pulled back to 7.865 percent from above 8 percent in anticipation of a rate cut. The slide marked the first time the yield had dropped below 8 percent since early 2011.

However, the RBI remains cautious with inflation around 7 percent. Last week, Governor Duvvuri Subbarao said inflation remained too high, a comment that dashed financial market expectations for a more aggressive rate cut of 50 basis points.

Most economists expect the RBI to cut its policy repo rate by 25 basis points on Tuesday to 7.75 percent and follow it up with a cumulative 75 bps of cuts by the end of September, a Reuters poll showed last week.

“The RBI cannot be very aggressive in rate cuts. Our view is that inflation is unlikely to fall sustainably below 7 percent. There are lot of suppressed inflationary pressures that will add to it,” said Sonal Varma, India economist at Nomura in Mumbai.

The RBI last cut rates in April 2012 by 50 basis points but warned at the time there would be limited scope for further cuts.

Fiscal house

For much of last year, the government was in turmoil as a fractious coalition struggled to push through new policies to arrest an economic slide that analysts forecast will leave growth for the full-year to March 2013 at just 5.5 percent, almost half the pace seen before the global financial crisis.

But in September it announced big bang reforms in a package of measures to revive growth, saying it would open up its supermarket sector to foreign chains and allow more foreign investment in airlines and broadcasters.

More recently, it gave oil companies more room to set regulated diesel prices and in a sign of a fresh measure that could be in the pipeline, Finance Minister P. Chidambaram said in TV comments aired on Thursday that India should consider hiking taxes for the “very rich”.

The moves are intended to bolster investor sentiment, mend battered government finances and stave off a possible credit rating downgrade to junk status.

India’s fiscal deficit touched 4.13 trillion rupees in April-November, or 80.4 percent of the budgeted target for the full fiscal year through March.

The government expects a budget deficit in the current fiscal year of 5.3 percent of GDP. Economists had pencilled in a deficit of at least 6 percent of GDP, although they have narrowed that to 5.5 percent or 5.6 percent of GDP following the various government measures in recent months.

The country’s current account deficit hit a record high of 5.4 percent of GDP in July-September, although Chidambaram said the country can finance the shortfall without cutting into national reserves.

Subbarao, a hawkish outlier in 2012 when many central banks were cutting rates and putting in place other stimulus measures, was due to meet with Chidambaram for a customary pre-policy discussion on Thursday.

In October, the RBI gave uncharacteristically specific guidance, saying there was a “reasonable likelihood” of policy easing in the January-March quarter. It reiterated the same point in December.

“The earlier guidance given by the RBI and the recent steps taken by the government has led to the expectation of a 25 bps rate cut,” said Saugata Bhattacharya, an economist with Axis Bank in Mumbai.

Source Info: http://timesofindia.indiatimes.com/business/india-business/RBI-likely-to-cut-repo-rate-first-time-in-nine-months/articleshow/18220397.cms

Ruchi Soya Sep ’12 sales at Rs 5,427.23 crore

 

Ruchi Soya Industries has reported a sales turnover of Rs 5,427.23 crore and a net profit of Rs 65.66 crore for the quarter ended Sep ’12. For the quarter ended Sep 2011 the sales turnover was Rs 6,082.29 crore and net profit was Rs 3.78 crore.

Quarterly Results of Ruchi Soya Industries ——– in Rs. Cr. ——–

Sep ’11 Jun ’12 Sep ’12 Sales Turnover 6,082.29 5,007.91 5,427.23 Other Income 10.84 67.74 83.16 Total Income 6,093.13 5,075.65 5,510.39 Total Expenses 6,045.25 4,860.81 5,362.07 Operating Profit 37.04 147.10 65.16 Profit On Sale Of Assets — — — Profit On Sale Of Investments — — — Gain/Loss On Foreign Exchange — — — VRS Adjustment — — — Other Extraordinary Income/Expenses — — — Total Extraordinary Income/Expenses — — — Tax On Extraordinary Items — — — Net Extra Ordinary Income/Expenses — — — Gross Profit 47.88 214.84 148.32 Interest 3.72 116.59 18.59 PBDT 44.16 98.25 129.73 Depreciation 34.02 34.63 34.27 Depreciation On Revaluation Of Assets — — — PBT 10.14 63.62 95.46 Tax 6.36 21.02 29.80 Net Profit 3.78 42.60 65.66 Prior Years Income/Expenses — — — Depreciation for Previous Years Written Back/ Provided — — — Dividend — — — Dividend Tax — — — Dividend (%) — — — Earnings Per Share 0.11 1.28 1.97 Book Value — — — Equity 66.60 66.69 66.69 Reserves — — — Face Value 2.00 2.00 2.00

Securing Origination: Ruchi Soya at the Rabo Bank Advisory Board Meeting in Hong Kong, 2012

December 28, 2012:

Ruchi Soya Managing Director Mr. Dinesh Shahra, along with Mr. Ankesh Shahra – Director, Business Development for Ruchi Agritrading Pte Ltd, Singapore were invited to attend the prestigious Rabo Bank Food & Agribusiness Advisory Board Meeting that was held in Hong Kong in November 2012. The Theme of the meeting was ‘Burgeoning world food demand and the shrinking corporate universe” and Ruchi was specifically asked to present their views and perspectives on the importance of M&A for Ruchi across the Food and Agriculture supply chain. Spread across two days, there were several important thought provoking issues discussed between the key decision makers of the largest Food and Agribusiness companies from Asia and the world.

Mr. Dinesh Shahra spoke about the importance of acquisitions at the low end of the business cycle and the value that high quality upstream assets at origination offer for companies such as Ruchi. In a discussion moderated by ex-CNBC anchor Ms. Lorraine Hahn, Mr. Dinesh Shahra mentioned that Asian companies should continue to vertically integrate but in order to remain sustainable, they must combine this integration with specialization down the chain. This is to ensure that they remain the most efficient users of the capital they possess, as niche/specialized companies are on a growth trajectory and are delivering exceptional returns.

Ruchi Industries Singapore, the overseas holding company of Ruchi Soya that is consolidating its global assets is in the process of executing the backward integration strategy of Ruchi Soya into palm plantations and agricultural production.  One of the topics discussed in Hong Kong were the challenges that stretch into asset ownership whilst securing origination. “Asset ownership in emerging economies comes with a set of risks that must be evaluated in conjunction with the superior cost structure that these countries generally offer. Sovereign and regulatory risks, management challenges, the ability to influence operations as well as differing tax regimes are all points to watch out for” says Ankesh Shahra.

Ruchi Soya Industries Limited

Featuring among the top five FMCG players in India, Ruchi Soya Industries is the flagship company of Ruchi Group of Industries. A leading manufacturer of high-quality edible oils, soya food, vanaspati and bakery fats, it is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, it is the largest producer and marketer of vegetable oils and soya food, the largest oilseed crusher and edible oil refiner, the largest importer of vegetable oil and the largest exporter of soya derivatives from India. Ruchi Soya has also diversified into Renewable Energy and Plantations in the recent past.

Ruchi Soya Industries Limited – Social Initiatives

We are interacting with three women groups through the Self Help process. Basically saving money and putting that to sensible use have found recognition that the women need. They are seen as individuals who help the family in difficult times. They learn to make decisions, voice their concern and come together to solve their own problems.

It is encouraging to see how the Ekta Mahila Group approached the Trust to help solve their Drinking water problem. They made a proper representation, put facts in proper perspective, were ready to help themselves and also worked out the distribution of water and paid their contribution as a token towards solving the water problem. They are now prepared to work on sorting out the water problem on a long term basis and are willing to look at Water shed programs.

They came forward and asked us to start tailoring classes. They searched a well known teacher and gave us two machines until we could purchase four more machines. They pay a nominal fee and show great enthusiasm to learn. We have seen great progress in their skills and are very encouraged by it.

New FMCG Entrants ready to take on Big Rivals

TNN | Jul 11, 2011, 04.34AM IST

A new breed of FMCG companies in India is aiming to reach the top quickly and challenge the incumbents. While Jyothy Laboratories hopped onto the top-five bandwagon by acquiring Henkel India, Ruchi Soya, with an annual turnover of Rs 18,000 crore, is close to matching the turnover of leading FMCG firm Hindustan Unilever (Rs 19,000 crore). Although Dinesh Shahra-run Ruchi Soya is seen as a commodity company, its growth is driven by brands like Ruchi Gold, Nutrela and Mahakosh. Not content with piggybacking the existing brands, Shahra is planning a foray into other branded commodities such as pulses, rice and salt. Its soap brand ‘Ruchi No.1’ may be a minnow when compared to the offerings from HUL, but with 10-15% yearly growth, Ruchi Soya Industries may just be able to catch up with the FMCG major, sooner or later.

 

Ankesh Shahra is managing the international businesses for Ruchi Soya. It includes establishing a cross-commodity global trading platform headquartered in Singapore, as well as implementing Ruchi Soya’s backward integration strategy into agricultural plantations in Asia and Africa. He has a background in Finance, Economics and International Trade, and represents the third generation of the Shahra family that started the business conglomerate Ruchi Group having business interests across the sectors ranging from Edible oil, Soya foods, Steel, Dairy, Information technology, Realty and others.

 

Shahra said, “I am very grateful to the committee for their kind consideration, and realise the responsibilities that this award carries and look forward to fulfilling each and every one of them. Food security is indeed a prevalent global concern, and Ruchi is taking strategic steps towards ensuring competitive supply to India in the coming several years.”

Ruchi Soya Industries Limited – Social Initiatives – Health

Whilst we would very much like to go into Health awareness programs in a systematic manner, we have started programs which can give immediate relief. We have partnered with The K.K. EYE Hospital which is run by the Sadhu Waswani Mission and has a super specialty hospital for eye care. We conduct Cataract Detection camps; those detected are then taken to the K.K. Eye Hospital for their surgeries. So far 68 financially challenged patients from these villages have got back their sight. These include the adivasis also.

The national program of Pulse Polio is another activity that we have decided to support and is in line with the nation’s goal to eradicate pulse polio. The Primary Health Centre staff is given the vehicle to move around in the villages that their centre is supposed to cover. Even the Cataract camp is held in this centre which gives them an edge also as the patients that come to them are then referred to the camp.

Most diseases are water borne and are a perennial problem to the people of the village of Esambe as there is a scarcity of clean and safe drinking water in this village. We consider it our duty to help provide clean drinking water to attack this phenomenon and as the women of the village of Esambe are ready to take this on a priority, we will address this issue along with them.