Ruchi Soya to invest Rs 600 cr on capacity expansion

Edible oil maker Ruchi Soya Industries has said it will invest Rs 600 crore to expand refinery capacity by 1.1 million tonnes by next fiscal.

"We are aiming to expand our palm oil refinery capacity by 1.1 million tonnes by 2011-12 fiscal with an investment of Rs 600 crore," Ruchi Soya Industries Managing Director Dinesh Sahara had told PTI yesterday.

Currently, the company has palm oil refinery capacity of 2.1 million tonnes per annum and plans to increase that by an additional 1.1 million tonnes through brownfield expansion in Mumbai, Kandla and Haldia refineries, he said.

"We will raise Rs 600 crore through internal accruals and debts," he added.

Ruchi Soya, which has brands like Nutrela Soyumm (Soyabean Oil), Ruchi Gold (Palmolein Oil) and Sunrich (Sunflower Oil), is also in the process of raising palm plantation acreage by 10,000 hectare in the country by this fiscal-end.

Currently, the company has 20,000 hectare under palm.

Ruchi Soya has been in the process of consoldiation and said it has successfully completed the merger of one of its group companies Sunshine Oleochem with itself, following approval of the merger scheme by Bombay High Court.

The company on January 17 approved to issue its one fully paid equity share of Rs 2 each for every 13 fully paid shares of Rs 2 each held by Sunshine Oleachem, a soap manufacturer.

Further, Ruchi Soya has also agreed to issue its one preference share of Rs 100 each for every preference share of Sunshine.

In total, Ruchi Soya has agreed to issue 21.3 million shares for shares and warrants of Sunshine Oleochem.

"Necessary compliances, including application of listing of 21.3 million equity shares, will be made by the company," Ruchi Soya had said.

Meanwhile, the company has posted a net profit of Rs 63.78 crore for the quarter ended December 2010, up by 58.49 per cent from Rs 40.24 crore a year-ago. Its net sales rose to Rs 4,628.36 crore from Rs 3,799.45 crore in the review period.

Shares of Ruchi Soya were trading at Rs 106.05 a piece at noon, up 0.14 per cent from previous close on the BSE.