Ruchi Soya to consolidate brand, diversify
RUCHI SOYA Industries Ltd (RSIL) ? India?s leading soya processor ? plans to focus on enhancing its brand equity to improve its margins and further consolidate its market share in the coming years. The company plans to expand to other food categories, vegetable oils and blended oils.india Updated: Feb 01, 2007 03:03 IST
RUCHI SOYA Industries Ltd (RSIL) — India’s leading soya processor — plans to focus on enhancing its brand equity to improve its margins and further consolidate its market share in the coming years. The company plans to expand to other food categories, vegetable oils and blended oils.
RSIL managing director Dinesh Shahra told Hindustan Times that future growth for RSIL would come from both expansion of existing facilities and acquisition of plants. “We expect the top line to grow by 15-20 per cent and bottom line by 25-30 percent this financial year,” he said.
RSIL, which has its corporate office in Indore, has a crushing and refining facility in Manglia near Indore besides other units in Nagpur and Kota.
Outlining his priorities, Shahra said that Ruchi has already consolidated its position to a large extent by amalgamation (with other group companies) and now our priority is to make sure that efficiency in maintained in terms of costs and branding.
On new export fronts, Shahra said, “The poultry industry is growing in southeast Asia, particularly Vietnam and Indonesia, and we are participating in that.” He also sees immense potential in Japan, particularly for non-GM (genetically modified) products. The company has taken some innovative measures like adding vitamins to its branded oils.
RSIL, he said, took some bold initiatives post economic reforms in 1993-94, including building port based refineries, which have helped it to sustain its market leadership and ward off the challenges posed by the entry of MNCs like Cargill.
Shahra, however, said that globalisation remained a threat “if we don’t optimise in terms of costs, size and branding.”
On company’s plans for entering contract farming, Shahra said that the government policy is not clear. “We are of course the largest processor and we are talking about it, but there is no clarity. We will just wait and watch how the government frames the policy and how it benefits the industry and the farmers.”
On the forthcoming budget, Shahra said that he is not expecting any major policy announcements with regard to the soybean industry as a whole. “Government has already reduced import duties and cannot afford to impose any levies on domestic crop because inflation is already a problem,” he said.
Shahra is optimistic about the future and believes that RSIL is now fully geared to capitalise on opportunities to grow its business in volumes and further enhance its leadership in the market.
RSIL post-amalgamation Q3 net Rs 37.52 cr
RUCHI SOYA Industries Limited (RSIL) has declared a post amalgamated net profit of Rs 37.52 crore for the third quarter ending December 31, 2006, compared to the standalone net profit of Rs 24.71 crore in the corresponding period previous year. On November 23, 2006, various group companies were merged with RSIL. The post amalgamation net sales stood at Rs 2,853 crore as compared to standalone RSIL net sales of Rs 1,092 crore.
For similar period, post amalgamation EBIDTA was Rs 98.12 crore as compared to standalone RSIL EBIDTA of Rs 54.15 crore whereas post amalgamation profit before tax (PBT) stood at Rs 58.20 crore as compared to standalone PBT of Rs 35.91 crore in the corresponding period of the previous year. Post amalgamation exports for the nine months’ period stood at Rs 570 crore as compared to standalone RSIL export of Rs 374 for the same period in the previous year.