BRAND VA L U E Ruchi Soya Industries Limited 29th Annual Report 2014-15 Forward-looking Statement In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and take investment decisions. is report and other statements - written and oral - that we periodically make contain forward looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in our assumptions. e achievements of results are subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise. CONTENTS 0116 1757 58177 CORPORATE STATUTORY FINANCIAL OVERVIEW REPORTS STATEMENTS In Step with a Healthier India 02 Directors’ Report 17 Standalone Financial Statements 58 Manufacturing Locations 04 Management Discussion and 45 Consolidated Financial Statements 116 Analysis Report Capacity Break-up 05 Corporate Governance Report 50 Message from the Managing Director 06 Notice 179 Financial Performance 08 Creating India’s Beloved Brands 09 Board of Directors 12 Management Team 14 Social Commitments 15 Awards & Recognition 16 BRAND PRODUCTS Nutrela Soya Food Products PREMIUM Rened Oils (Soyabean, Groundnut, Cotton POWER Seed, Sunower, Mustard and Rice Bran) Nutri Gold Vanaspati RUCHI SOYA’S VISION OF PROVIDING VALUE ADDED FOODS IN EVERY HOME FOR EVERYONE, EVERYWHERE, EVERY DAY IS BEING REALIZED THROUGH ITS LARGE PORTFOLIO OF BRANDS. OUR BRANDS PROVIDE MORE THAN JUST NUTRITION, TASTE AND QUALITY. ey are prudently formed lifestyle in customized product development. choices that oer trusted preferences in We work to ensure the same level health and convenience, soon becoming of commitment to quality, taste and a part of the consumer’s life. nutrition across all our brands, to touch lives in a positive way and constantly As a market leader, Ruchi Soya feels earn consumers’ trust. responsible for meeting and exceeding your expectations. Every brand is a result of comprehensive research, and answers deep-rooted consumer needs. Every brand is built on the core values of quality, trust and integrity. And every brand is testament to the Ruchi Soya’s commitment to raise the benchmark BRAND PRODUCTS BRAND PRODUCTS Mahakosh Rened Oils (Soyabean, Ruchi Gold Rened Oils (Mustard and Groundnut, Cotton Seed, VALUE Palmolein) Mustard Oil and Rice Bran) Ruchi Star Rened Soyabean Oil Sunrich Rened Sunower Oil Ruchi No.1 Vanaspati Ruchi Soya Industries Limited IN STEP WITH A HEALTHIER INDIA RUCHI SOYA IS ONE OF THE LARGEST INTEGRATED OILSEED SOLVENT EXTRACTION AND EDIBLE OIL REFINING COMPANIES IN TERMS OF OILSEED CRUSHING AND OIL REFINING CAPACITY. With expansion plans across its business BRANDS Ruchi Soya provides a complete verticals, it continues to consolidate vegetable oil solution comprising Nutrela, Mahakosh, Sunrich, Ruchi and sustain its market leadership in a range of oils and fats – soyabean, Gold, Ruchi Star and Soyumm are edible oils, vanaspati, bakery fats and sunower, mustard, rice bran, the agship brands of Ruchi Soya soya foods categories. e Company palmolein, groundnut, vanaspati has built strong brand reputation Nutrela is the most respected soya and bakery fats and emotional connect through its foods brand in the country and has consumer brands and products over the become generic to that category PANINDIA PRESENCE last two decades. RAW MATERIAL Processing plants across 20 locations Over the years it has diversied its in India, giving access to markets product portfolio to serve a larger SECURITY across India section of the community with In the business of edible oil dierentiated needs and tastes. Its manufacture, raw material security 106 company depots (with storage strong brand portfolio and enhanced is critical and other logistical facilities) which availability has ensured nourishment at serve more than 5,000 distributors Ruchi Soya enjoys a trusted two- almost every Indian home. across the country reaching over decade relationship with credible 700,000 retail outlets plantation owners, which translates into a consistent supply of raw 29 material and production consistency Years of Corporate existence PRODUCT MIX e widespread product range enhances the Company’s exibility in being able to provide diverse 20 products to suit dierent economic Manufacturing locations across India realities 2 Annual Report 2014-15 2014-15 Revenue Mix (%) Oils 67 Others 16 Extractions 12 Vanaspati 3 Food Products 2 7 LAKH+ Retail stores across India 2 LAKH+ HECTARES Land access in India for palm oil plantations with exclusive procurement rights across six states 3 Ruchi Soya Industries Limited MANUFACTURING 1. Jammu 11. Nagpur LOCATIONS 2. Sriganganagar 12. Washim 3. Baran 13. Daloda 4. Kota 14. Patalganga 5. Guna 15. Mangalore 6. Kandla 16. Chennai 7. Pipariya 17. Kakinada 8. Gadarwara 18. Vijaywada 1 9. Haldia 19. Durgawati 10. Manglia 20. Peddapuram 2 4 3 5 13 6 8 10 7 19 9 11 12 14 20 17 18 15 16 4 Annual Report 2014-15 CAPACITY BREAK-UP Oilseed Edible Palm Extraction Oil Re ning Fruit Processing Annual Capacity Annual Capacity Annual Capacity 3.72 million metric tonnes 3.30 million metric tonnes 0.90 million metric tonnes Facility Locations 10 Facility Locations 14 Facility Locations 02 Vanaspati Soya Wind & Bakery Fats Meal Extraction Power Generation Annual Capacity Annual Capacity Annual Capacity 0.59 million metric tonnes 3.05 million metric tonnes 85.3 Megawatt Facility Locations 08 Facility Locations 10 Facility Locations 11 5 Ruchi Soya Industries Limited MESSAGE FROM THE MANAGING DIRECTOR OUR CONTINUOUS FOCUS ON BRAND and Priyanka Upendra for Sunrich. Having made the right moves, Ruchi BUILDING AND ENHANCING OUR Soya has achieved 18.5% market share MANUFACTURING CAPABILITIES IS HELPING of edible oil market in India and our brands Mahakosh, Sunrich and Ruchi US ACHIEVE STRONG TOP LINE AND Gold are the leaders in the branded BOTTOM LINE GROWTH. edible oil market. Our state-of-the-art manufacturing plants have indigenous technology based on our understanding of Dear Friends, Sunrich, Mahakosh, Ruchi Gold and improving eciency and quality. ese Ruchi Star constitute over 83% of our Reecting on the year 2014-15, Ruchi eorts have led to better utilization packed edible oil sales. Soya continued to execute its strategy of capacities. We endure to keep the of protable growth, and delivered consumer at the centre of everything on its strategic ambition of building a MAINTAINING THE we do and this single minded approach smart marketplace for India. At Ruchi GROWTH MOMENTUM has helped us to deliver sustainable Soya, we manage with a long-term e Company posted a top line of value protably. Ruchi Soya is currently perspective. Our aim is to evolve Ruchi ` 28,309 crore and prot after tax a market leader in the cooking oils Soya into a company with an integrated recorded 354% growth to ` 60.93 category with one of the largest retail global sourcing model for catering crore this year. Our continuous focus penetration of over 7 lakh retail outlets. to one of the world’s most potential on brand building and enhancing our Our strong and extensive network of market opportunities named India. manufacturing capabilities is helping depots, sale points, distributors, dealers us achieve strong top line and bottom and brokers across India has enabled us INDIA MARKET line growth. Our pan-India distribution to reach a wide spectrum of customers. OPPORTUNITY reach and continuous investment in R&D is helping us deliver the message India is one of the most attractive of ‘good health and tness’ to millions consumer markets with a one billion of Indian households. Branded sales plus opportunity. Young demographics, have grown from ` 6,965 crore to rising income levels and increased ` 8,357 crore, registering healthy health awareness among both urban growth of 19.98%. We market 1,20,000 and rural consumers are helping drive We are positive about the long-term tonnes per month and are the largest consumption. Edible oil is a part of prospects for consumer products, in the packaged edible oil segment and the staple cooking of every kitchen, thanks to consistent economic growth, soya foods category in the country. thus recession proof. Also there has low per capita consumption and the been a shift in consumer preference continued shift from the consumption from unbranded to branded oil with BUILDING ENDURING of unbranded to quality branded the guarantee of purity, health and BRANDS products in our key markets. non-adulteration. A large opportunity Our agship brands performed well too exists in the protein business for the during the year. Consumers relate to company as today 70% of urban and our brands for purity, smell, taste and rural Indians are decit in consumption health. At Ruchi Soya, building FMCG of protein and protein is an essential brands, especially in the commodity- building block of the human body. led edible oil sector, is a slow and Ruchi Soya through its pan India steady game. It will require signicant manufacturing and distribution of investments in brand building, branded and bulk, low cost and high advertisement spends and trade channel quality soya protein is in the best space development. During the year, we to be able to contribute to bridging this re-launched Mahakosh and Sunrich gap and playing a role in improving to capture the leadership in edible oil the state of the nutrition security of segment.