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Ruchi Soya Industries Ltd.

BSE: 500368 Sector: Industrials
NSE: RUCHISOYA ISIN Code: INE619A01027
BSE 15:43 | 19 Jan 19.15 -0.05
(-0.26%)
OPEN

19.20

HIGH

19.45

LOW

18.65

NSE 15:58 | 19 Jan 19.05 -0.15
(-0.78%)
OPEN

19.50

HIGH

19.50

LOW

18.60

OPEN 19.20
PREVIOUS CLOSE 19.20
VOLUME 345212
52-Week high 33.75
52-Week low 15.40
P/E
Mkt Cap.(Rs cr) 640
Buy Price 0.00
Buy Qty 0.00
Sell Price 19.05
Sell Qty 3145.00
OPEN 19.20
CLOSE 19.20
VOLUME 345212
52-Week high 33.75
52-Week low 15.40
P/E
Mkt Cap.(Rs cr) 640
Buy Price 0.00
Buy Qty 0.00
Sell Price 19.05
Sell Qty 3145.00

Ruchi Soya Industries Ltd. (RUCHISOYA) - Chairman Speech

Company chairman speech

MESSAGE FROM THE MANAGING DIRECTOR

But in these trying times it has been the trust of our customers andstakeholders that have seen us emerge stronger to face tomorrow with faith and conviction.Our strength in these difficult times has come from our relentless focus on quality tomake us the most reliable edible oil and soy foods manufacturer today.

DEAR SHAREHOLDERS

We entered 2016-17 hoping for a good monsoon but an erratic monsoondid not allow agribusiness the opportunity to fully recover from the effects of theprevious years of bad weather. It would be pertinent to point out that after the floods in2013 the back to back failure of the monsoons in 2014 and 2015 occurred only for the thirdtime in the last 143 years. The brunt of this drought was faced mainly by the farmers andagri-commodity industry and the effects spilled over leading to our reporting losses forthe second time.

But in these trying times it has been the trust of our customers andstakeholders that have seen us emerge stronger to face tomorrow with faith and conviction.Our strength in these difficult times has come from our relentless focus on quality tomake us the most reliable edible oil and soy foods manufacturer today.

TAKING ACTION

We have not stood silently but have faced the challenges with a clearstrategy. As an integrated agribusiness leader with a presence from farm to fork we haveworked on the various aspects of our business to limit the negatives and enhance thepositives. We undertook consolidation of our operations and rationalised production inline with availability of raw materials and market demand. We also implemented certainausterity measures and cost-cutting initiatives. These include implementation of energyefficient technologies at the plant level optimisation of crushing capacities and plantoperations A conscious decision was taken to reduce exposure to the low margin tradingbusinesses. Instead we have focussed on strengthening our manufacturing brands anddistribution with an eye on operational efficiency to emerge leaner and stronger. This isreflected in the increased contribution of our branded FMCG business to the topline. Ourbrands Nutrela Mahakosh and Ruchi Gold continue to be leaders in their areas and holdgreat promise for the future. Our value-added food products Textured Soy Protein (TSP)under the brands Nutrela and Mahakosh displayed strong growth. A positive note was anincrease in the export of Oil Seed Extractions to the tune of over 50%.

Edible Oil Processing and Packaging as per the agreements withPatanjali Ayurved began and we are sure that this will contribute to improving RuchiSoya's capacity utilisation efficiency and profitability. The fruits of our labourwill be visible in the coming years.

The demonetisation in November 2016 was a step to benefit the nation inthe long run. Farmers faced problems in the immediate aftermath of demonetisation due tocash being their primary mode of transaction. To support the farmers through thisdifficult period Ruchi Soya launched the ‘Kisan Kalyan Ayojan' digital bankinginitiative to educate and guide farmers to the transition to a digital economy. Throughthis initiative we have helped over 30000 farmers to make the move to cashlesstransactions.

The recent increase in import duty on edible oils is a big positive fororganised edible oil players. The increase in duty differential from 7.5% to 10% betweenrefined and crude palm oil will bring down the quantum of refined palm oil imports andgive an impetus to the domestic refining industry by encouraging import of crude palm oil.This is in line with the ‘Make in India' credo as we move towards nutritionalsecurity.

LOOKING AHEAD

The future is bright and promising. India's large populationbacked by rising urban and rural incomes is a key to increasing demand for agriculturalproducts. The government is operationalising many schemes to ensure that agriculture getsthe right stimulus to meet future demand. The schemes launched include the Pradhan MantriFasal Bima Yojana for crop insurance Pradhan Mantri Krishi Sinchayee Yojana for promotinginvestment in irrigation the Paramparagat Krishi Vikas Yojana to promote organic farmingand the setting up of the Agricultural Technology Management Agency for deliveringservices and information to farmers.

The Hon'ble Prime Minister's announcements on the eve of 2017have also shone a positive light on the farmer's future with a long-term vision toprovide farmers better access to loans from co-operative banks and societies through afund infusion into NABARD. Even small farmers will have access to credit with theincorporation of ‘Kisan Credit Cards' into the ‘RuPay' fold.

India's agricultural sector provides more jobs and sustainableincomes than all other sectors put together. India's agricultural products fetchhigher earnings than even trade in services or manufacturing. With proactive supportIndia can further enhance its farm exports and contribute to the nation's prosperityand development. Progress in agriculture will also address other glaring social problemslike village and town planning urban migration and access to basic health care andnutrition in rural areas. Better access to credit for farmers will help them gainsustainable incomes and invest in assets for growth and better returns.

DINESH SHAHRA

Managing Director