Ruchi Soya set to revolutionize soyabean production in India

Joint Venture with D J Hendrick International Inc (Canada) and KMDI International (Japan) 

JV to research, produce, market and distribute high yielding Non Genetically Modified (Non GM) 

Soyabean seeds with higher oil percentage and nutritional value

Shareholding pattern: Ruchi Soya 55%, DJHII 35% and KMDI International 10% stake in the new JV

Mumbai, February 22, 2014: Ruchi Soya Industries Limited (Ruchi Soya), the leading FMCG player in India has announced a Joint Venture (JV) with D J Hendrick International Inc (DJHII), a Canadian soyabean research corporation and center of excellence for development of healthy non genetically modified (Non GM) Soyabeans and KMDI International, a Japanese trader and marketer of high quality food grade Soyabeans.

Ruchi Soya continues to recognize the importance of Soyabeans as a food source for Indians that can combat protein malnutrition, as well as provide the growing Indian population with the requisite calorific values and food security. With that vision, Ruchi Soya believes that the future lies in increasing the overall quantum of soybeans grown in India and improving their genetic makeup through a systematic breeding program. 

The Joint Venture is combining expertise from each partner to uplift the low yields that India is currently facing which is amongst the lowest in the world, and far below the global average. This will be done by a comprehensive marketing and distribution program of the soyabean seeds that it has researched and bred. Apart from the health and nutritional benefits to the population, India stands to save precious foreign exchange spent on imports, raise farmer incomes as well as positively impact the balance of trade and rural economy.

Ruchi Soya will hold majority stake of 55% in the joint venture whereas D J Hendrick International Inc and KMDI International will hold 35% and 10% respectively. 

Mr. Dinesh Shahra, Founder and Managing Director, Ruchi Soya Industries Limited said, “The Joint venture aims to widen best crop management practices for soyabean varieties tailored for different Agro climatic zones of the country and adapt varieties to increase yield and also, increase the supply of specially designed functional, nutritious and affordable soy food products for the population especially women and children who need rich nutrition. This association is an important step towards our business objective of making and building a Healthy India. Better yield will also ensure better returns for the farming community”

India is the world’s fifth largest producer of soybeans in the world, producing approximately 12 million metric tons (MT) annually. This produces 1.8 million MT of soyabean oil. However, India’s productivity of just 1.017 MT of soyabeans per hectare is less than half of the global average of 2.5 MT per hectare. Further, India is a net importer of soyabean oil and imports almost 1.2 million MT annually. The pace of consumption of soyabean oil is much faster than the local production so if corrective action is not taken, India’s foreign exchange bill will continue to widen leading to an increasing trade deficit. This JV plans on reducing import dependency through improving the oil content in domestically grown soyabeans. 

This effort reinforces the commitment of Ruchi Soya to bring their deep understanding of Indian commodity, food & agriculture market; DJHII’s commitment to bring their global breeding, processing technology & knowledge to the Indian Market; and KMDI International’s commitment to provide their global network and establish sound internal controls for the Joint Venture Company.

Mr. David Hendrick – Chairman, D J Hendrick International Inc said, “We have vast experience in soy seed research and production of quality food which is rich in nutritional values. Our knowledge and know-how will be very helpful in developing and achieving the objectives of the joint venture”

Mr. Michael Treytiak – Managing Director, KMDI International said, “Our expertise and experience in marketing will play an important role in developing the seed business of the Joint venture.”

About RUCHI SOYA INDUSTRIES LIMITED Ruchi Soya is India’s leading FMCG Company, India’s number one cooking oil and soy food maker and marketer. An Integrated player from farm to fork, Ruchi Soya has secured access to oil palm plantations in India and other key regions of the world. Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector.

About D J HENDRICK INTERNATIONAL INC DHJII is a Canadian company having a global vision “Seed for a healthy way of life”. DJHII is the centre of excellence for non GM soyabeans in Canada. Their business involves research, production, processing and export of grains and oilseeds. Their cutting-edge breeding technologies have led to the development of a large collection of soyabean germplasm accessions that carry traits of interest, selected from the world soyabean gene banks. 

About KMDI INTERNATIONAL is a Japanese trading company dealing in commodities from Canada and Asia. They specialize in securing supplies of high quality food grade soyabeans for imports into Japan. Their management philosophy is based on the principle of treating their customers as partners, which ultimately translates into a more efficient work process, yielding better results. 

Contacts for media: 

Ruchi Soya Industries Limited Perfect Relations

Yogesh Kolte Anil Mathews | Adnan Syed

98203 09121 98204 80317 | 9920873783

yogesh_kolte@ruchigroup.com amathew@perfectrelations.com asyed@perfectrelations.com

Ruchi Soya Plans Palm Processing Unit In State

 Ruchi Soya Industries, India’s largest cooking oil and soya food maker, plans to set up an oil palm processing mill in Odisha at an investment of Rs 30 crore.
“We will initially set up a 10 tonne per hour fresh fruit bunches (FFB)  processing mill next year. We are exploring for a location  in districts like Mayurbhanj, Balasore and Bhadrak. The plant will take two years for operations”, said Dinesh Shahra, founder and managing director, Ruchi Soya Industries.
The company has started oil palm cultivation on 28,000 hectares land in Mayurbhanj, Balasore, Bhadrak and Kendrapada districts for which the company has entered into a tripartite agreement with the state government and farmers.

Ruchi Soya processes about 0.52 million tonne oil palm per annum.

Apart from Odisha, Ruchi Soya is working with the farmers in the states of Andhra Pradesh, Mizoram, Gujarat, Tamil Nadu, Karnataka and Chhattisgarh. In Andhra Pradesh, Ruchi Soya has access to over 30,000 hectares of plantation. The company operates four oil processing mills in Andhra Pradesh with aggregate FFB processing capacity of 125 tonne  per hour.

“We also have plans to set up an oil refinery in Odisha”, he added.

On hiking the prices of edible oils in the wake of rupee weakening against the dollar, Shahra said, there is no concern for price rise as the international prices of edible oil are coming down and in India, the price is also falling because of the good domestic oil seed crops this year.

The company imported about 1.4 million tonne of both crude and edible oil last year.

Just 2/250:Ruchi Soya,ITC fastest homegrowns

Only two home-grown Indian companies — Ruchi Soya & ITC — have made it to the top 250 consumer companies in the world, says a survey by Deloitte titled ‘Global Powers of the Consumer Products Industry 2013’.

While Ruchi Soya has been ranked at 121, ITC stands at 150. For Ruchi Soya that manufactures edible oil and soybean products, it’s an improvement of 54 positions, Last year, the company stood at 175. On the other hand, cigarette and consumer goods maker, ITC has slipped by seven position in this year’s ranking.

If we look at the list of 50 fastest growing company in the world, Ruchi Soya has been ranked at 13, followed by ITC at 39.

While Ruchi Soya has recorded a 66% growth in sales in 2011-12, ITC’s net sales jumped 17.5% in the same period.

This is based on a survey by Deloitte on the data available till June 2012. For a company to make it to the list of top 250 consumer product companies, it has to have a minimum sale of Rs16,600 crore and has to register at least a 7% growth in sales on a yearly basis.

The report points out that as sales in the other established markets are taking a beating, companies from the emerging markets have started taking the lead in the fastest growing company in the world and going forward, this trend is likely to continue.

Dinesh Shahra, managing director of Ruchi Soya, said, “Improved branded sales, better sales realisation of oilseed extraction, effective control on the costs and favourable business sentiment helped us to get better performance in the past one year. We are making our efforts to have good performance on a sustained basis in the times to come.”

An ITC spokesperson said: “ITC’s aspiration to be the No. 1 in the FMCG sector in its new consumer goods businesses is supported by its relentless effort to build world-class brands that create, capture and retain value in India. These brands have earned significant consumer franchise and in addition, we are looking at enhancing the competitiveness of the entire value chain.”

Ruchi Soya partners Japan cos for edible oil

To introduce a super premium edible oil brand which Indian consumers have never witnessed, Ruchi Soya Industries, India’s leading food and agro-based FMCG player, has inked a joint venture with J-Oil Mills Inc and Toyota Tsusho Corporation (TTC), both from Japan.  Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC.  “This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network,” said Dinesh Shahra, Founder and Managing Director, Ruchi Soya.

In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the company’s existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore. The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said. The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014.

Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, “The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment.” “Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field,” said Yoshiki Miura, Managing Director, TTC.

Ruchi Soya joins hands with GAIN and CECOEDECON

Ruchi Soya joins hands with GAIN and CECOEDECON for the Fortification of Mahakosh Soyabean Oil with Vitamin A and D 

•  CECOEDECON, GAIN and Soyabean oil processors join hands in Madhya Pradesh
•  Mahakosh soyabean oil will now have added health benefits to tackle deficiency of Vitamins

 June 18, 2013, Bhopal: India’s leading FMCG Company and No. 1 manufacturer & marketer of Edible oil and Soya products, Ruchi Soya Industries Limited (Ruchi Soya) will play a pivotal role in the project on ‘Soybean oil fortification’ in Madhya Pradesh. Under this project, largest selling Soyabean oil brand in the state ‘Mahakosh’ will now have additional health benefits of Vitamin A and D.  

This was announced recently in Bhopal during the official launch ceremony of soybean oil fortification project graced by the Honourable Chief minister of Madhya Pradesh Shri. Shivraj Singh Chouhan. Also present on the occasion was Shri Kailash Vijayvargiya, Honourable Minister of Science & Technology & Food Processing, Government of Madhya Pradesh along with several other dignitaries.

Centre for Community Economics and Development Consultants Society (CECOEDECON) has been working on ‘Soybean oil fortification’ in collaboration with the United Nations affiliated body, Global Alliance for Improved Nutrition (GAIN) and edible oil manufacturers in Madhya Pradesh. Under this project, soyabean oil by leading companies will be fortified with the essential vitamins A & D. This initiative aims to curb malnutrition in Madhya Pradesh with a primarily focus on the nutritional security.

 Mr. Sarvesh Shahra, Business Head, FMCG and Specialty Ingredients, Ruchi Soya Industries Limited commented, “The objective of the soyabean oil fortification project in Madhya Pradesh is to reduce health related problems arising due to Vitamin A and D deficiencies in the state. We are happy to partner with the NGOs and offering healthier options to the consumers of our soya oil brand Mahakosh in Madhya Pradesh. We will also work closely with NGOs like CECOEDECON and GAIN on the awareness generation campaign on Vitamin A and D deficiency and the strategies to address it.”

Ruchi Soya Industries Limited is India’s leading FMCG Company, the No. 1 manufacturer and marketer of Edible oil and Soya products under popular retail brands like Nutrela, Mahakosh, Sunrich and Ruchi Gold. An Integrated player from farm to fork, Ruchi Soya has secured access to oil palm plantations in India and other important parts of the world. Ruchi Soya is also the highest exporter of soya meal, lecithin and other food ingredients from India. Ruchi Soya is committed to renewable energy and exploring suitable opportunities in the sector.

The Global Alliance for Improved Nutrition (GAIN) is an alliance driven by the vision of a world without malnutrition. Created in 2002 at a Special Session of the UN General Assembly on Children, GAIN supports public-private partnerships to increase access to the missing nutrients in diets necessary for people, communities and economies to be stronger and healthier. GAIN is a Swiss foundation headquartered in Geneva, and has a global presence.

The Centre for Community Economics and Development Consultants Society (CECOEDECON) was founded by a small group of young, committed social workers to provide immediate relief to the victims of devastating floods in Jaipur district in 1982. From a very modest beginning as a relief agency, ECOEDECON has evolved into a civil society organization pursuing integrated participatory development and advocating human rights.

From soya oil to steel

Ruchi Soya Industries Limited (RSIL), the flagship company of the Rs 11,000 crore Ruchi Group of Industries, the country’s largest manufacturer of soya food products is all set to strengthen its base in the edible oil market.

The company is also foraying into the steel business to cash in on the growing demand for value-added steel products market.

To begin with it would focus on south Indian market, from where the company expects major volumes in the future.

Two of its strongest brands, Nutrela and Ruchi Gold are category leaders. Nutrela, the biggest Soya foods brand in the country, enjoys more than 40 per cent of the market share. The products under this brand name include, chunks, granules, mini chunks and soya flour and the recently launched cooking oil, Nutrela Healthy Cooking Oil, the company claims, is India’s first vitamin enriched oils with Vitamins A, D and E.

Ruchi Gold’s market share in southern states ranges from 50 to 85 per cent. The brand has grown from 35 per cent to 40 per cent compound annual growth rate (CAGR) since its introduction.

With its recent launch of Nutrela Healthy Cooking Oil and the existing Ruchi Gold (launched in 1998), the company has devised innovative strategy in order to emphasise its presence in southern territory.

Brand positioning
The company has positioned its products - Nutrela Healthy Cooking Oil and Ruchi Gold — on two different platforms. For the Nutrela Healthy oil, the target customers are a niche one, the one who can afford a higher price. Nutrela Healthy Cooking oil, are manufactured in the premium light oils category, comes in three variants, soyabean, sunflower and mustard oil. Moreover, to add the flavour of glamour, the company has roped in actress Bhumika Chawla as the face of Nutrela Healthy Cooking Oils. She will endorse the brand through their print and television advertising created by Ogilvy & Mather. In selected metros, outdoor media campaign will be launched which will include branding of the Metro railway station of Delhi.

On the other hand, Ruchi Gold, the market leader in the palmolien oil category, has been positioned at a more ‘aam aadmi’ (common man) platform. Branded as ‘as pure as 24 caret’, it claims to give the common man “more purity at a reasonable price”, according to Amrita Shahra, Head, Business Development, RSIL.

“We are using two different platforms — one is going to be the value for money option and the other is positioned on health grounds”, Ms Shahra opined.

Distribution network
Ruchi Gold has 80 per cent market share within refined palmolien oil category according to ORG February data and it is highest selling oil in consumer packs in South India. “RG is well distributed in metros, mini metros and class I-IV towns with a two pronged distribution network wherein we have brokers as well as dedicated distributors” she pointed.

The oil refineries are located in Patalganga (Maharashtra), Nagpur, Indore. Chennai, Mangalore with approximately 12.45 lakh MT per annum of refining capacity (Ruchi Soya and subsidaries) and total crushing capacity of approximately 12 lakh MT per annum.

There is a clear thrust on promoting soya foods in south India, where soya products are not yet popular. Traditionally, soya foods are more popular among north Indian. In a bid to cater to the south Indian palate, RSIL is coming up with customised soya flour, which will have the taste of south Indian dishes, for example, tastes of Idli and Dosa.

“In south India, we now see more acceptance of soya food. Hence, we have decided to offer certain south Indian taste masalas which will be suitable for south Indian plates.” says Ms Shahra.

“We intend to tap the healthy oils segment in sunflower oil. Since nationally Nutrela denotes health and nutrition, all the variants we will launch in this brand name will automatically connote health. We have also enriched it with Vitamins A, D and E, to make it the only oil in India which has been enriched with three Vitamins.

South India is a big market for sunflower oil and Ruchi Soya will indulge in major brand building there. Product will be available through 1,100 distributors, stockists, 1.5 lakh retailers etc. We have also tapped major super markets like Food Bazar, Spencer’s hyper market.”, Ms Shahra told Deccan Herald.

According to Dinesh Shahra, Managing Director, Ruchi Soya “The industry will also be in better shape due to removal of excise duties and VAT implementation, which will help consolidation and better margins to organised players. Higher customs duties on imported raw material will also discourage imports, which will lead to more domestic production and encourage farmers to grow more crop and help get better realisation.”

The company is also bullish on the industry with improved domestic crop production, consumption is expected to increase due to lowered prices to consumers. Also due to the government’s intention to implement the packaging control order, consumers will have a packed, hygienic oil which will ensure health safety.

“The edible oils branded sector is growing approximately at a rate of 20 per cent per annum and Ruchi plans to grow at a much faster pace. Already, around than 1/4 of its turnover comes from branded sales of oils, vanaspati and soya foods. Also, last year our bottom line growth far exceeded our top line growth and this trend is likely to continue the coming year as well”, Mr Shahra added.

Steel forayMeanwhile, Riding on the steel wave, the Ruchi Group is close to commissioning its new steel processing unit near Gandhi Dham in Kutch district of Gujarat. The Greenfield project, will be commissioned by Indian Steel Corporation, a group company, with an investment to the tune of Rs 580 crore.

With this project, Ruchi Group will add a fresh capacity of half a million tonnes to its processing capacity. The plant will produce cold rolled, galvanised and galvalum steel products.

“With increasing activity in the Indian auto sector and sustained buoyancy in the construction segment, we are bullish on Indian domestic demand”, Mr. Umesh Shahra, Managing Director - Ruchi Group, commented.

The plant is likely to benefit from cheaper imports of the raw material due to its proximity with the port. The plant is likely to start trial production by mid July 2005. Sales may take a couple of months more to commence.

RUCHI 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. We have expanded our crushing and refining capacities to remain competitive in the market. Our recent acquisitions and mergers will help us to accelerate our pace of growth

Palm Plantation                     Capacity Enhancement

Green Energy                          Mergers & Acquisition