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Ruchi Soya Industries Ltd.

BSE: 500368 Sector: Industrials
NSE: RUCHISOYA ISIN Code: INE619A01027
BSE LIVE 15:40 | 25 Sep 22.85 -0.45
(-1.93%)
OPEN

23.25

HIGH

23.45

LOW

22.25

NSE 15:40 | 25 Sep 22.95 -0.45
(-1.92%)
OPEN

23.15

HIGH

23.45

LOW

22.20

OPEN 23.25
PREVIOUS CLOSE 23.30
VOLUME 229655
52-Week high 31.80
52-Week low 18.50
P/E
Mkt Cap.(Rs cr) 763
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.25
CLOSE 23.30
VOLUME 229655
52-Week high 31.80
52-Week low 18.50
P/E
Mkt Cap.(Rs cr) 763
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ruchi Soya Industries Ltd. (RUCHISOYA) - Chairman Speech

Company chairman speech

Dear Shareholders 2015-16 proved to be a challenging year for global and Indianbusinesses especially for companies operating in the agribusiness and commodity space.Despite challenges we continued with our mission of enhancing our brands portfoliostrengthening our manufacturing and R&D capabilities and further expanding ourdistribution reach. We tried to anticipate future needs and intensified our capabilitiesaccordingly.

MARKET OPPORTUNITY

According to United States Department of Agriculture (USDA) India's edible oil has amarket size of 20.23 million metric tonnes (MT) in volume (annual consumption) and isvalued at over INR 1 trillion. (June 2015 estimates). entinational per capita consumptionof edible oils and fats is 14 kg per annum which is substantially lower than the worldaverage of 20 kg per annum. While in developed countries the _gure is 35 kg per annum.India's per capita consumption is expected to increase in future and that toosubstantially. e country's vegetable oil consumption witnessed a signi_cant growth duringthe year. Factors like growing population increasing household income surging demand andrising health awareness contributed to this growth. e edible oil industry plays asigni_cant role in ensuring food security for India's billion plus population. Besides ithas immense potential in saving the country's valuable foreign exchange. India isestimated to have spent over $10 billion on the imports of edible oil making it thethird-biggest import item after crude oil and gold. With brands like Nutrela MahakoshSunrich and Ruchi Gold Ruchi Soya is well poised to capitalise on the ever increasingdemand for edible oil in the country. ese brands have built a strong equity in the marketin their respective segments.

A recent study by Indian Market Research Bureau (IMRB) has revealed that 80% Indiandiets are protein de_cient. is provides a great opportunity for nutritious and protein-ledfoods like soyabean. us we see tremendous potential for our brand Nutrela a namesynonymous with soy protein in the country. Nutrela has much more protein content thanwhat is found in meat egg wheat or milk. is makes it the ideal source for protein.

CHALLENGING OPERATING ENVIRONMENT

During the year under review the Company's performance was adversely impacted byvarious factors. Sustained pressure in global commodities market weak and erratic monsoonin the country foreign exchange fluctuations and overall economic downturn largelyaffected our business. Turbulent global market conditions coupled with a steep fall inprices of commodities such as soyabean edible oils coffee guar gum and castor alsoimpeded our growth. But despite challenges our topline stood at ` 27805 crorerecording only a marginal decline over last year.

BRANDED SALES BUSINESS

Over the last couple of years our relentless focus has been to build enduring brandsand we have been largely successful in this regard. Our branded sales business registereda healthy growth of close to 10%. Our eminent brands including Ruchi Gold and MahakoshSoya recorded double digit growth and continued to gain market share. Besides Nutrela andSunrich maintained their market share. During the year the branded edible oil sales grewby over 15% in terms of volume.

WAY FORWARD

Going forward we will continue to strengthen our distribution reach focus on brandbuilding innovate new products and packaging techniques penetrate into the retail spaceand bolster our market presence. e Company is confident of the core branding and foodsbusiness that continues to be strong and resilient. is will drive the future growth andmeet the expectations of the various stakeholders.

Terefore we are positive about our long-term business growth. We are committed tobuilding a ‘Healthy India' with our nutritious and high-quality food products. As wemove forward we will create value for the environment people and communities whilefulfflling our business objectives. I on behalf of the entire leadership team deeplycherish the trust and support that you have provided to the Company in all these years. Iseek your continued cooperation in creating sustainable value for our consumers farmersemployees investors and all other stakeholders. Regards

Dinesh Shahra

Managing Director.