I have always been intrigued by how Soybean industry started in otherwise indolent environment of MP and how did government or private enterprise catalyzed it.
Now when we have even IIM at Indore this can be a good case of 'cluster study' like IT in Bangalore or automobile in pune and Chennai though ours is obviously smaller but I guess it impacts more lives and in a much powerful way.
MUMBAI: CARE has assigned ‘CARE A-’ rating to the long-term bank loans and ‘PR2+’ to the short-term bank loans of Ruchi Soya Industries Ltd. for
an aggregate amount of Rs 3,582.59 crore, including term loans.
The ratings take into account the leadership position of Ruchi Soya in the domestic edible oil market, its processing capacity which is the largest in India with a good mix of inland crushing/refining and port-based refining units, experienced management, increasing share of sales from branded products and consistent growth in profit over the last five years despite volatility associated with commodity prices. The ratings are constrained due to low profit margin inherent to the agro-commodity sector, seasonality associated with availability of raw materials, working-capital intensive nature of the industry, low liquidity indicators and successive debt-funded capital expenditure plans. Improvement in financial profile through control over debt in a working-capital intensive industry and efficient commodity/forex risk management are the key rating sensitivities.
Ruchi Soya is engaged in extraction of oil from soya and other oil seeds, edible oil refining, manufacture of vanaspati, textured soya protein and related byproducts. Share of revenue from trading activity has consistently declined over the years as Ruchi Soya has shifted its focus to value-adding manufacturing activities and further to branded retail segment. Ruchi Soya markets its products under the brand names like Nutrela, Sunrich, Proflo, Bakefat, Soyumm, Ruchi Gold etc. Branded sales contributed to 29% of Ruchi Soya’s total sales in FY08, up from 26% in FY07 and the same grew by nearly 45% over the previous period. Ruchi Soya has manufacturing facilities at 16 locations across India having a good mix of inland-crushing/refining units and port-based refining units providing Ruchi Soya with the flexibility of processing various types of oilseeds and edible oils. Ruchi Soya’s seed crushing and edible oil refining capacities are the largest in India. Edible oils contributed 67% to FY08 revenue followed by seed extractions (23%), vanaspati (8%) and others (2%). Exports constituted 17% of Ruchi Soya’s total revenue for FY08.
Ruchi Soya posted a total income of Rs.11,135 crore for FY08 which grew by 28% compared to FY07. PBIDLT and PAT margins were 4.37% and 1.43% in FY08 respectively. Overall gearing as on Mar.31, 2008 was 1.28. For Q1FY09 ended Jun.30, 2008, total income grew by 20% compared to corresponding period of previous year. Both PBILDT margin and PAT margins have improved during Q1FY09 compared to the corresponding period of previous year.