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In terms of edible oil imports, on the record India is now the world's largest. Some of the primary causes boosting the edible oil market in India include improving household incomes, the rise of the food processing sector, rising urbanisation rates, and changing dietary patterns.
Consumer health concerns about the increasing prevalence of cardiovascular disease, gastrointestinal problems, diabetes, obesity, and other ailments are driving awareness of healthy edible oil in India. The industry is also being boosted by increasing knowledge of the numerous health benefits of low-cholesterol and organic edible oil. And that's what drove several regional producers to introduce healthy product versions that are high in omega-3, natural antioxidants, and vitamins.
Ruchi Soya Industries Limited (Ruchi Soya) has grown into a completely integrated company in the edible oil industry, with a reach from fields to plates with safe access to Indian palm oil plantations.
Ruchi Soya - Company Highlights
| Startup Name | Ruchi Soya |
|---|---|
| ACquired By | Patanjali Ayurved |
| Headquarters | Mumbai, Maharashtra, India |
| Industry | Food and Beverage Manufacturing |
| Founders | Dinesh Shahra |
| Founded | 1986 |
| Current CEO | Sanjeev Asthana |
| Website | www.ruchisoya.com |
Ruchi Soya - About and How it Works?
Ruchi Soya - Industry
Ruchi Soya - Founder
Ruchi Soya - Startup Story
Ruchi Soya - Name, Logo, and Tagline
Ruchi Soya - Vision, and Mission Statement
Ruchi Soya - Employees
Ruchi Soya - Funding, and Investors
Ruchi Soya - Acquisitions
Ruchi Soya - Competitors
Ruchi Soya - Challenges Faced
Ruchi Soya - Future Plans
Ruchi Soya - FAQs
Ruchi Soya - About and How it Works?
Ruchi Soya Industries Limited is a company that processes oilseeds and refines crude oil for human consumption. It is divided into the following sections: Seed extracts, oils, vanaspati, wind power generation, food products, and other products are available. Various forms of seed extractions are included in the Extraction section. Vanaspati, baking fats, and a table spread, all are available in the Vanaspati sector. Crude oil and refined oil account for the vast majority of revenue in the oils industry. Textured soy protein and soy flour are included in the Food Products category. Wind turbines are used to generate power in the Wind Power Generation industry. Seeds, seedlings, soap, coffee, fresh fruit bunches, toiletry preparations, castor seed, honey and wheat flour are included in the other segments.
The firm's headquarters are in Indore, with plants and offices across the nation's significant business hubs. Despite domestic and international rivalry, they have pursued an unwavering path of expansion since their inception.
Patanjali Ayurved acquired Ruchi Soya in 2019. As per a survey issued by Deloitte Touche Tohmatsu, Ruchi Soya is rated 175 among the list of top 250 consumer products companies in the "Global Powers of the Consumer Products Industry 2012."
Ruchi Soya - Industry
The provision of good infrastructure and India's diversified agro-climatic conditions, which promote the mass production of food components, are the two key factors that have helped the Indian food processing sector grow to become the fifth largest in the world. Currently, India's food processing sector employs 11.60 per cent of the country's population and accounts for 32 per cent of the country's food market. In addition, the industry contributes 2.2 per cent of India's overall FDI inflows. Even though the industry is dominated by the unorganised sector, the organised sector is predicted to grow throughout the projection period (FY 2020-FY 2024).
The Indian food processing market was worth Rs 25,691.30 billion in FY 2018 and is predicted to reach INR 53,435.52 billion by FY 2024, growing at a CAGR of 12.09 per cent between FY 2020 and FY 2024.
Ruchi Soya - Founder
Dinesh Shahra founded Ruchi Soya in 1986.
Ruchi Soya Industries Ltd.'s Founder and Managing Director, Dinesh Shahra, is renowned in the industry for his strategic business expertise and iconoclastic management.
Ruchi Soya - Startup Story
Ruchi has been one of the country's leading edible oil manufacturers since it began operations in Indore in 1986. Its other products included soya food, Vanaspati, and lecithin. Ruchi's product portfolio included these everyday delicacies. Despite their diverse product portfolio, palm oil and soya chunks accounted for a significant portion of their income.
Ruchi Soya quickly grew to become one of the country's top FMCG firms. It possessed a sizable market share and a well-developed distribution network. Ruchi Soya produced roughly 3 million tonnes of oil per year, with 7 lakh+ retail outlets and 6000+ wholesalers. It also has around 13 well-maintained refinery units. Customers and markets both appreciated it. It was one of the go-to investments for anyone searching for a high-yielding stock. Ruchi Soya's life was, in a nutshell, hunky-dory until 2011. In fact, it continued to make considerable money until the end of 2015.
However, the tides quickly turned against it, bringing with them a sequence of unfavourable circumstances that redefined its success story. Yes, the corporation saw a precipitous decline from its apex. So, where did things go wrong?
The problem began when Indonesia's government, which imports the bulk of its raw resources, enacted proposed laws. The government raised the tax on crude oil and some other raw resources exports under the new law. The higher expense has to be borne by it. This had an economic burden on the company's margins as well.
Ruchi Soya has become one of India's finest FMCG companies, as a prominent maker and distributor of a nutritious variety of edible oils and a pioneer of soya foods. And it's one of India's biggest palm planting firms. Ruchi Soya now has 22 production plants, with a combined refining capacity of over 11000 tonnes per day, a seed crushing capacity of 11000 tonnes per day, and a packaging capacity of ten thousand tonnes per day.
The industry's pan-India inclusion, which includes strategically located manufacturing facilities that strike the proper blend between proximity to raw materials and markets, as well as an extensive distribution network and a large sales force in India, has allowed it to run smoothly, increase product to satisfy ever-increasing domestic consumption, and outsource by-products like soy meal, lecithin, and other condiments to other nations.
Pratyusha Srivastava
Ruchi Soya - Name, Logo, and Tagline
Ruchi Soya's tagline says, "Healthy options every day."
Ruchi Soya - Vision, and Mission Statement
Ruchi Soya's vision statement says, "To be India's leading edible oil & food company by building profitable brands that delight consumers by meeting their everyday health & nutrition needs at the best value."
Ruchi Soya - Employees
Below are mentioned key people of Ruchi Soya Industries.
- Founder & Managing Director - Dinesh Shahra
- Vice President - Hemant Bansal
- Dy. Manager Supply Chain South - Ak Singh
- National Activation Manager - Amitakshya Chowdhury
- Asst. Manager Commercial/ Finance - Amol Desai
- Junior Manager - Anudit Purohit
- Product Manager - Ashish Jaiswal
- Sr Manager HRD - Ashwini Kumar
- Manager - Electrical - Avinash Agrawal
- Asst. Manager Legal - Dilip Taraj
- Assistant Manager - Diwedi Dwivedi
Ruchi Soya - Funding, and Investors
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Mar 24, 2022 | Funding Round | ₹12.9B | Alchemy Capital Management, Oman’s Pension Fund, Volrado Ventures |
Ruchi Soya - Acquisitions
| Acquiree Name | About Acquiree | Date | Amount |
|---|---|---|---|
| Patanjali Biscuit Business | Patanjali Biscuit Business is a producer of biscuits and bakery products. | May 11, 2021 | ₹600M |
| Gemini Edibles and Fats India Pvt. Ltd | Gemini Edibles & Fats India Private Limited is in the business of manufacturing and marketing edible oils and fats. | Jan 6, 2010 | ₹45M |
As of March 24th 2022, as follow-on public offering opens for subscription, Ruchi Soya falls 5%. Before the follow-on public offering, the business, which is run by Baba Ramdev's Patanjali Ayurved, received Rs 1,290 crore from anchor investors. Ruchi Soya's stock hit a low of Rs 851 on the BSE, down from Rs 897.45 at the previous closing. The Rs 4,300 crore FPO is available at a 40% discount to the company's existing market price at the top end of the price band of Rs 650 per share.
The firm was purchased by Patanjali Ayurved after it went bankrupt. It is a fully integrated operator in the edible oil industry, with operations spanning the whole production process. It sells Nutrela, Mahakosh, Sunrich, Ruchi Gold, and Ruchi No. 1 goods.
The firm has recently expanded into other industries such as data and honey. Ruchi Soya's entrance into additional FMHG and FMCG items such as biscuits, oleochemicals, rusks, honey, wheat flour, and nutraceuticals signals well for the company's mid-to-long-term commercial growth.
Patanjali, which controls 98.90% of the firm, was required to reduce its shareholding to 75% or less within three years after purchase. It has been two years, and it is thus necessary to sell its shares.
Ruchi Soya - Competitors
Some of the top competitors of Ruchi Soya are:
- Agro Tech Foods
- AVT Natural
- BCL Industries
- Gokul Agro
- Gokul Refoils
- Ruchinfra
- Sanwaria Consum
- M K Proteins
- Raj Oil Mills
- NK Industries
- JVL Agro Ind
- Rasoya Protein
- Vimal Oils
- KN Agri Res
Yash Taneja
Ruchi Soya - Challenges Faced
The Indonesian govt. has decreased the taxes on refined oil exports. As a result, a rise in the price of its product might lose the company money. Ruchi Soya was faced with a significant dilemma and a limited number of solutions. The higher expense has to be borne by it. This had a toll on the company's margins as well. The loss of the castor oil business impacted Ruchi Soya even harder since the firm was already struggling to keep up with rising production expenses. Even though castor seeds only accounted for a small fraction of the company's profitability, the losses were substantial.
The global market for castor seeds had a significant drop in 2017. Ruchi Soya had put a lot of money into it, only to lose a lot of money. Aside from that, India's seed and seedlings industry hit a snag when a severe drought hit the country, resulting in crop failure in various sections of the country. All of this had a significant impact on their output. Things have only gotten worse for a corporation that is already having a crisis.
Ruchi Soya, which had formerly been profitable, was now reporting massive losses on its accounting records. For example, the financial accounts for March 2016 forecast a shortfall of over 800 crores. Furthermore, the company's debts continued to rise to unprecedented heights and were estimated to be in the range of 9000 to 10000 crores. As a consequence of its clients' failure to pay, it began to see a rise in unsurvivable debts. A total of 5000 crores in loans were written off as bad debts.
The SEBI was also looking into the business because of its deceptive trading operations on the commodities market. They were soon compelled to withdraw from the stock markets.
Ruchi Soya - Future Plans
Ruchi Soya's Current COO stated that the firm is undergoing numerous rebranding operations. It is reducing expenses and diversifying its product range to include new areas. It has partnered with Adani and with Wilmar to completely reinvent its company.
Distribution and imports networks are also being examined. For the same goal, a Rs 5000 crore investment has been made. Sales increased for the corporation as well.
A number of businesses have risen from the ashes and gone on to construct colossal empires. Ruchi Soya will undoubtedly be added to the list.
The business experienced a setback, but it is now back on course, and with a roar. With massive potential and a well-thought-out strategy, the firm is looking forward to a brighter tomorrow filled with exciting changes.
Ruchi Soya - FAQs
What products does Ruchi Soya make?
The product line of Ruchi Soya contains Vanaspati, Biscuit Division, Ruchi Sunlight Oil, Mahakosh Oil, Sunrich Oil, Ruchi Gold Oil, Nutrela Oil, Nutrela, and Soya Foods.
When did Patanjali acquire Ruchi Soya?
Patanjali bought Ruchi Soya for 4,000 crores in a corporate bankruptcy resolution procedure in 2019.
Who founded Ruchi Soya?
Dinesh Shahra founded Ruchi Soya in 1986.
Which companies do Ruchi Soya compete with?
Ruchi Soya's top competitors are:
- Agro Tech Foods
- AVT Natural
- BCL Industries
- Gokul Agro
- Gokul Refoils
- Ruchinfra
- Sanwaria Consum
- M K Proteins
- Raj Oil Mills
- NK Industries
- JVL Agro Ind
- Rasoya Protein
- Vimal Oils
- KN Agri Res