Ruchi Soya aims to turn Nutrela into Rs 5,000-crore brand in 5 years

KOLKATA: Ruchi Soya Industries today said it aims to expand the Nutrela brand five-fold to Rs 5,000 crore in the next five years.

Stating that Nutrela was a small brand compared to the Ruchi brand which accounted for sale of Rs 7,000-8,000 crore, Ruchi Soya AVP Marketing Sandipan Ghosh said the company wanted to make Nutrela a Rs 5,000 crore brand in the next five years from Rs 1,000-1,200 crore now.

On reports of raids by the Mumbai income tax authorities on the group, the company did not forsee any hurdle towards its growth target.

"No," Ghosh said when asked whether the raids would have any adverse impact on growth.

Ghosh said the existing business of Nutrela would grow by around 20 per cent year on year and the company planned to introduce more products.

"Currently, we are carrying out market research to enter new product categories under Nutrela brand," he said.

The brand was currently restricted to soya products, edible oil and margarine.

In 2008, the company had made an attempt to foray into beverage from soya but failed to get the desired response.

Ghosh said Nutrela offered high EBITA margin of 10-15 per cent for the company among other products.


Source: http://articles.economictimes.indiatimes.com/2013-02-04/news/36742839_1_nutrela-ruchi-soya-industries-soya-products

Securing Origination: Ruchi Soya at the Rabo Bank Advisory Board Meeting in Hong Kong, 2012

Mr. Ankesh Shahra and Mr. Dinesh Shahra is seen with:
Mr. Lex Kloosterman - Global Head ,
Wholesale Clients International
– Rabo Bank International

December 28, 2012: Shahra – Director, Business Development for    Ruchi Agritrading Pte Ltd, Singapore were invited to attend the prestigious Rabo Bank Food & Agribusiness Advisory Board Meeting that was held in Hong Kong in November 2012. The Theme of the meeting was ‘Burgeoning world food demand and the shrinking  corporate universe” and Ruchi was specifically asked to present their views and perspectives on the importance of M&A for Ruchi across the Food and Agriculture supply chain.  Spread across two days, there were several important thought provoking issues discussed between the key decision makers of the largest Food and agribusiness companies from Asia and the world.
Mr. Dinesh Shahra spoke about the importance of acquisitions at the low end of the business cycle and the value that high quality upstream assets at origination offer for companies such as Ruchi. In  a discussion moderated by x-CNBC anchor Ms. Lorraine Hahn, Mr. Dinesh Shahra mentioned that Asian companies should continue to vertically integrate but in order to remain sustainable, they must combine this integration with specialization down the chain. This is to ensure that they remain the most efficient users of the capital they possess, as niche/specialized ompanies are on a growth trajectory and are delivering exceptional returns.

Mr. Dinesh and Mr, Ankesh Shahra is seen with
Mr. Jeroen Nijsen – CEO Asia,
Rabo Bank International in the middle

Ruchi Industries Singapore, the overseas holding company of Ruchi Soya that is consolidating its global assets is in the process of executing the backward integration strategy of Ruchi Soya into palm plantations and agricultural production. One of the topics discussed in Hong Kong were the challenges that stretch into asset ownership whilst securing origination. “Asset ownership in emerging economies comes with a set of risks that must be evaluated in conjunction with the superior cost structure that these countries generally offer. Sovereign and regulatory risks,
management challenges, the ability to influence operations as well as differing tax regimes are all points to watch out for” says Ankesh Shahra.
Ruchi Soya Industries Limited
Featuring among the top five FMCG players in India, Ruchi Soya Industries is the flagship company of Ruchi Group of Industries. A leading manufacturer of high-quality edible oils, soya food, vanaspati and bakery fats, it is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, it is the largest producer and marketer of vegetable oils and soya food, the largest oilseed crusher and edible oil refiner, the largest importer of vegetable oil and the largest exporter of soya derivatives from India. Ruchi Soya has also diversified into Renewable Energy and Plantations in the recent past.

New FMCG Entrants ready to take on Big Rivals

A new breed of FMCG companies in India is aiming to reach the top quickly and challenge the incumbents. While Jyothy Laboratories hopped onto the top-five bandwagon by acquiring Henkel India, Ruchi Soya, with an annual turnover of Rs 18,000 crore, is close to matching the turnover of leading FMCG firm Hindustan Unilever (Rs 19,000 crore). Although Dinesh Shahra-run Ruchi Soya is seen as a commodity company, its growth is driven by brands like Ruchi Gold, Nutrela and Mahakosh. Not content with piggybacking the existing brands, Shahra is planning a foray into other branded commodities such as pulses, rice and salt. Its soap brand ‘Ruchi No.1′ may be a minnow when compared to the offerings from HUL, but with 10-15% yearly growth, Ruchi Soya Industries may just be able to catch up with the FMCG major, sooner or later.

Ankesh Shahra is managing the international businesses for Ruchi Soya. It includes establishing a cross-commodity global trading platform headquartered in Singapore, as well as implementing Ruchi Soya’s backward integration strategy into agricultural plantations in Asia and Africa. He has a background in Finance, Economics and International Trade, and represents the third generation of the Shahra family that started the business conglomerate Ruchi Group having business interests across the sectors ranging from Edible oil, Soya foods, Steel, Dairy, Information technology, Realty and others.

Shahra said, “I am very grateful to the committee for their kind consideration, and realise the responsibilities that this award carries and look forward to fulfilling each and every one of them. Food security is indeed a prevalent global concern, and Ruchi is taking strategic steps towards ensuring competitive supply to India in the coming several years.”

Ankesh Shahra of Ruchi Soya honoured at Globoil

Ankesh Shahra was felicitated with the Global Young Entrepreneur Award during the Annual Globoil Conference 2012 held in Mumbai. Currently based in Singapore, Shahra is managing the international businesses for Ruchi Soya.

Shahra, who received the award from member of Parliament Ram Jethmalani, stated, “Food security is indeed a prevalent global concern, and Ruchi is taking strategic steps towards ensuring competitive supply to India in the coming several years.”

Established in 1997 in India, Globoil is a premier international conference and exhibition on vegetable oil, feed and feed ingredients, oilseeds and oleo chemicals.

Featuring among the top five FMCG players in India, Ruchi Soya is manufacturer of high quality edible oils, soya foods, vanaspati, and bakery fats, and is also the highest exporter of soya meal, lecithin and other food ingredients from India. The company owns household brands such as Nutrela, Mahakosh, Sunrich and Ruchi Gold, It clocked a turnover crossing Rs. 26,000 crores last financial year.

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