KSOils Presentation

Delivering Health
and Prosperity
Investor Presentation
526209 KSOILS KSO@IN KSOI.BO
© 2010, K S Oils Limited. All Rights Reserved.

Disclaimer: The information contained herein is subject to change without notice. This material was used during an oral
presentation; it is not a complete record of the discussion. K S Oils Limited accepts no liability whatsoever with respect to the use
of this document or its content. All product names and company names and logos mentioned herein are the trademarks or
registered trademarks of their respective owners.
Agenda
Section Slide No.
The Company 03
Industry Dynamics 10
K S Oils Background 26
Company’s Products and Markets 38
Manufacturing 40
Markets and Distribution 48
Historical Financial Performance 50
Strategy & Growth Initiatives 56
Delivering Health and Prosperity • www.ksoils.com 2

The Company

The Company
K S Oils Limited (“KSO" or “K S Oils” or “the

Company”) is one of India’s leading integrated
edible oil company
Code: 526209 Code: KSOILS

Listed Since 1994 Listed Since 2007

The Company
Integrated Manufacturing Plants
integrated capacities for crushing, refining,
solvent extraction and vanaspati.
Madhya Pradesh Rajasthan W. Bengal

Morena Kota Haldia
Ratlam
Guna
Strong Distribution Strong brands

network in crude mustard and
1,313 Distributors and soya refined oil
over 200,000 retailers
Key Highlights – Indian Edible oil market
Indian Edible oil market size
Estimated value: INR 750 bn.
Branded edible oils
Mustard Oil emerging as one of the
INR 130 bn. high growth segments
in Indian FMCG
Other Edible Oils industry
INR 620 bn. Growth Estimate
8% p.a.
The branded edible oil segment (~ 25% of the total market) is expected to
grow by 25-30% p.a. in the next few years.

Key Highlights
Largest rapeseed crusher in

Advantage India
K S Oils Wide product range to suit local
tastes and preferences
Strong brands
K S Oils is well- Strong distribution network

positioned to capture
this opportunity Increasing focus on retail packs
and pouches

Key Highlights
Excellent Track Record

• Excellent sales and profit growth
• Revenues have grown at a CAGR of 46%

p.a. for the last five years while EBITDA has
grown at a CAGR of 77% p.a. Strong Distribution
• Increase in EBITDA margins from 4.5% in Network
FY06 to 11.82% in FY10 on account of
shifting revenue composition in favour of • Strong presence in mustard oil
branded trade packs and consumer packs consuming regions – 37 C&F
• Successfully transitioning to an FMCG company agents, 6 company depots,
1,313 Distributors and over
• Increase in branded revenue from 293 crs.
200,000 Retailers
in FY06 to 2,496 crs. in FY10
• Initiated expansions into new
• Growth in Retail packs from 10% of the total
markets and organized retail
turnover in FY06 to 35% in FY10
formats with refined edible oil
• Highest margin earner in the industry
products
Key Highlights
Quality manufacturing
• Largest crushing capacity in India - 4,400 MT/day
facilities
located in Madhya Pradesh and Rajasthan
• Integrated facilities at the country’s strategic raw
material and consumer belts
• Captive power generation and in–house
packaging units
• Part of an established business house belonging to

Strong management
the Garg family from Morena, Madhya Pradesh
with decades of
dealing in agro based products for the last 150 years
experience in agri
commodities • Present management includes representatives from
the fifth and sixth generation of the family

Industry
Dynamics

World Consumption Pattern
World consumption of 17 Oils and Fats
1990-91: 81.8 Mn. MT 2008-09 : 163.15 Mn. MT
Other PKO &

Oils/ CNO,
PKO &
CNO, Animal 5.1% Sunflower
Sunflower
5.80% Fats, Oil, 7.5%
Other Oil,
Oils/ 10.10% 25.0% Rape Oil,
Animal 12.8%
Rape Oil,
Fats,
10.60%
40.30%
Soya Oil,
19.40% Soya Oil,
Palm Oil, Palm Oil, 22.3%
13.80% 27.4%
Source: Oilworld (www.oilworld.biz)

Macro-economic situation
Indian edible oil economy is world’s fourth
largest after USA, China and Brazil (India Indian Edible Oils Market – INR 750 bn.
accounted for 8.2% of world oilseeds, 6.53% oil Overall growth rate 8% p.a.
meal production and 10.26% of world Mustard Oil
consumption of edible oils in Oil year 08-09) 18-20%
Other Edible
2nd largest import bill item for India Oils - 80%
zero level import duties by government to

help domestic players in sourcing raw
Branded Mustard Edible Oils
material at best and low prices
Growth rate 40% p.a.
Branded
Increasing health consciousness 30%
preference for packaged products (hygiene
factors and avoidance of any adulteration) Unbranded
and low-saturated fat cooking mediums 70%

Indian Edible Oil Industry: Overview…
“
India accounts for 8.2% of world oilseeds output (2008-09);
6.5% of world oil meal production; 6.1% of world oil meal “
export; 5.3% of world vegoil production; 13.8% of world vegoil
imports; and 10.26% of the world edible oil consumption.
Source: Oil World
The Independent Forecasting Service for Oilseeds, Oils & Meals
Hamburg / Germany (Website: www.oilworld.biz)
India has ~ 15,000 oil mills, 711 solvent extraction units and over 585
refineries employing more than one million people.
With an annual consumption of ~ 17 mn tons, the per capita consumption is at 14.5

kg p.a., which is very low as compared to the world average of 23.90 kg p.a.
• Domestic supply is estimated at 8 mn tons while the rest is imported.
• By 2015, per capita consumption is expected to be between 17-18 kg p.a.

Indian Edible Oil Industry: Overview
Popular cooking mediums used in India include
sunflower oil, mustard oil, groundnut oil, soyabean oil, palm oil and
coconut oil
• Mustard, soyabean and palm oil account for over 75% of

total edible oil consumption (excluding butter). Edible oil is sold in
India either in
• Only around 16% of Indian households consume
consumer packs
branded edible oils.
(5 lt. and less than 5 lt.
• Among branded oils, refined oil accounts for 60% of pack sizes),
consumption and crude oil (only filtered) accounts for the bulk packs (15 kg/ lt.)
balance. or as loose oil in
• Branded edible oils have penetrated 31% of households tankers or barrels.
in urban areas and only 9% in rural areas.
• The edible oil sector in India is largely unorganized with
a few organized players.

India’s Edible Oil Consumption
18
16
Oil consumption (Mn. tonnes)
14
12
10
0
2005
2007
2009
2006
2008
Soybean Oil Groundnut Oil Sunflower Oil Mustard Oil Other Oils Palm Oil
Palm Oil has the highest consumption in India ~40% and is almost entirely imported. Mustard oil is the largest domestic oil and
constitutes 12% of total consumption.
India’s Per capita consumption is assumed to equal current world average of 24.5 kg per person p.a. in next 10 years. India’s total
consumption of edible oil is expected to double from current 16 Mn. Mt. to 32 Mn. Mt. by 2020.

COOIT’s Estimates of India Oilseeds Crop for 2009-10 (Nov. - Oct.)
Figs. in Mn. metric tonnes
Sr. Oilseeds/ Solvent Oil Oil - Marketable Surplus Total Total Oil
no. Extracted Oils Recovery Seeds For Crushing & Oil Marketable Availability
% Availability Surplus
Kharif Rabi
(Summer) (Winter)
I. OILSEEDS
1 Groundnut (in shell) 40 5.12 3.29 1.83 1.52 0.61
2 Soybean 17 8.50 8.50 - 7.50 1.28
3 Rape/Mustard/Toria 33 6.42 0.10 6.32 6.22 2.05
4 Sunflower 35 0.99 0.32 0.67 0.98 0.34
5 Others 2.08 1.44 0.64 1.74 0.76
SUB TOTAL 23.11 13.65 9.46 17.96 5.04
II. OTHER OILSEEDS
10 Cottonseed 12.5 9.15 9.15 - 8.65 1.08
11 Copra 65 0.66 0.66 - 0.66 0.43
SUB TOTAL 9.81 9.81 - 9.31 1.51
III. SECONDARY SOURCE 1.33
(Rice Bran, Oil Cakes and other Minor Oilseeds)
iv. BUTTER, as Fat (as per Oilworld) 2.16
Grand Total 32.92 23.46 9.46 27.27 10.04

Rapeseed and Soybean growing areas
Mustard/ Rapeseed
Minor growing areas
Major growing areas

Kota Morena
Guna
Ratlam Haldia Soybean
Minor growing areas
Major growing areas
Location of KSO’s Plants
17
Delivering Health and Prosperity • www.ksoils.com
India’s Edible Oil Consumption
Consumption Production
Consumption in India The Local Oil production
during Nov.09 to Oct.10 in India as per Trade
is estimated to be estimates will be around
~17 Mn. MT 7.88 Mn. MT
Imports
India will have to import ~9 Mn. MT to meet the
shortfall and increased demand.
The imported oils mainly constitute crude and
refined Palm oils from South-East Asia and Soya
Degummed oil from South America.

Imports of Edible & Non-Edible Oil by India
Nov. 07 to Oct. 08 – 5.61 Mn. MT Nov. 08 to Oct. 09 – 8.18 Mn. MT

Sun Flower Oil
Ref ined Palm Oil 8%
15%
Soyabean Oil
(Degummed)
12%
Crude Palm Oil

64%
Palm oil imports accounted for ~80% in the last oil year – global sourcing at best prices helping Indian edible
oil companies fulfil the increased per capita consumption.

Regional Consumer Preferences
north-east, central,
Mustard
north and east
Groundnut west
Palm central and south
Soyaben north and central
largely consumed
in urban India, in
Sunflower
relatively small
quantity Strategic Location of KS
Oils to address mustard
cultivating / consuming
belts

Key Players and Brands: Mustard Edible Oil
Company Brand Remarks
Double Sher, Kalash, Largest player in the mustard edible oil market (crushing
K S Oils
KS Gold capacity of 4,400 MT/ day)
GCMMF (Amul) is the sole selling agent for Dhara and
NDDB Dhara
markets this brand through its wide distribution network
Refined mustard oil which is marketed in the Eastern
Agro Tech Sudham
market
Recently launched refined mustard/soyabean edible oil
Bunge Dalda
in Eastern market
Gokul Refoils Gokul Capacity of 690 MT/ day for mustard crushing
Shri Hari
Engine Established brand in Rajasthan
Industries
Acquired the brand 5 years ago; crushing capacity of
Vijay Solvex Scooter
325 MT/day
Recent entrant in crude mustard oil (third party
Adani Wilmar Fortune Kachi Ghani
manufacturing)
Mandap and Ruchi Presence in crude and refined mustard oil (third party
Ruchi Soya
Gold manufacturing)
Outlook
“ The demand for edible oils is expected to increase from current levels of 16.6
million tonnes in 2009 to 22.5 million tonnes by 2015.
-- The Solvent Extractors' Association of India
Particulars 2015
Total Demand (Million Tonnes) 22.5
Total area under Oil seeds (Million Hectares) 30
Yield (Tonnes/ hectare) 1.3
Production of Oil seeds (Million Tonnes) 42
Domestic supply of edible oils (Million Tonnes) 12.5
Total edible oil imports (Million Tonnes) 10

Imports as share of demand 44%
India’s dependence on imports is expected to increase to the extent of ~44% of its consumption
requirement. The improvement in yields and the increase in area under cultivation are expected to
ensure that domestic oilseed production is sufficient to meet only ~56% of consumption requirement.

Mustard Oil Industry: Mustard Seeds
Mustard Seed Cultivation Cropping Pattern
• The uniqueness of • Mustard is a winter crop, • Rajasthan (~42%), Uttar
mustard lies in the fact that it requires a temperate Pradesh(~15%), Madhya
it has a very high oil climate to prosper. The Pradesh & Chhattisgarh
content (~40-42% by sowing period in India is (~14%) contribute 71%
weight) and that it is a during the early Rabi of the total Indian
hardy short duration crop season i.e. October to production
requiring nominal amount November
of water and fertilizers • The balance 32% is
• The crop starts flowering cultivated in Punjab &
• Mustard seeds have a in the months of Haryana, Gujarat, West
shelf life of 3-4 years and December, January and Bengal, Assam, Bihar,
mustard oil is a natural February. The harvesting Himachal Pradesh &
preservative with period is from February Orissa
antioxidants, which makes to May
it the preferred oil for
pickles

Mustard Oil: ‘The Heart-friendly Oil’
Mustard Oil has
the least amount Comparison of Dietary fats
of saturated fat Mustard Oil 7 61 11 21
as compared to Safflower Oil 8 77 1 14
all other edible Flaxseed Oil 9 16 57 18
oils Sunflower Oil 12 16 1 71
Corn Oil 13 29 1 57
Soybean Oil 15 23 8 54
Olive Oil 15 75 1 9
Rice barn Oil 18 44 38
Peanut Oil 19 48 33
Cottonseed Oil 27 19 54
Lard 43 47 1 9
Palm Oil 51 39 10
Coconut Oil 91 7 2
Saturated Fat Monounsaturated Fat Polyunsaturated Fat

Alpha-Linolenic Acid – Omega 3
Linolenic Acid – Omega 6
Mustard Oil: ‘The Heart-friendly Oil’
A study was conducted among 350 cases of heart attack in eight hospitals and 700
normal people in Delhi and Bangalore by a team comprising experts from
All India Institute of Medical St. John’s Medical College

Sciences, New Delhi Bangalore
Boston
Dr K Srinath Reddy from AIIMS, renowned • The reason for the protective effect of
scientists involved in the study, says mustard oil is that it is rich in alpha
Linolenic acid which is a source of
“ Use of mustard oil was associated

with a two-fold lower risk than was
use of sunflower or other oils,
omega-3 polyunsaturated fatty acids,
known for giving protection to heart.
• Alpha Linolenic acid reduces the

adhesion-aggregation tendency of blood
Similarly, those who use mustard oil
for frying foods lower their risk for
“ platelet which should decrease the risk
of heart attack.
heart attack by 71 per cent.
Published in

K S Oils
Background

The Company
K S Oils is in the business of manufacturing and marketing of branded crude
mustard (rapeseed) oil and refined mustard/other edible oils
The Company is the largest processor Estd: 1985

of rapeseed in India
• Largest player in the crude
mustard oil market Code: 526209 Code: KSOILS
• Largest exporter of rapeseed Listed Since 1994 Listed Since 2007
deoiled Cake (200-09)
Manufacturing and Distribution
• Significant presence in the
Manufacturing facilities are located
refined oil market (soyabean/
in Madhya Pradesh, Rajasthan
palm)
and West Bengal.
• Other products include vanaspati,
Strong distribution network with 37
Soya deoiled cake, solvent oils,
C&F agents, 1,313 Distributors
fatty acids and other oils
and over 200,000 Retailers.
The promoters
The Company is part of an old established business house belonging to the
Garg family from Morena, Madhya Pradesh dealing in agro based
products for the last 150 years
Mr. Ramesh Chand Garg Mr. Sourabh Garg

Chairman Executive Director
• belongs to the fifth generation of • is from the promoter family

the Garg family. • is actively involved in green field
• has vast experience in business project activation and new
of agriculture commodities, infrastructure initiatives
project expansion, sales and • also looks after the product
distribution expansion initiatives
The Promoters are currently engaged in the edible oils business only
Management Team
Name Designation Profile
He has over 20 years of experience in this
Sanjay sector and is the main driver in the Company’s
Managing Director
Agarwal expansion & growth; key person driving
backward integration.
Ex-CEO of Britannia and one of the most
Head - Marketing celebrated Marketing Guru’s in India. He
Sunil Alagh
Advisory Committee formulates the Marketing and Brand strategies
of the company.
He has experience in edible oils international
Himanshu Global Head- trade. He drives strategic new business
Gandhi Business Strategy initiatives and international foray of the
company.
He has been a strategic advisor to top

R Ganesh Executive Director companies on policy issues. He is in charge of
the K S Oil’s HRD policies.

Board of Directors
Name Designation Profile
Rajeev Kalra Director He is nominee of the Citi Venture Capital group.
He is nominee of Baring Private Equity Asia III

Jimmy Mahtani Director
Mauritius.
Vivek Sett Director He is nominee of New Silk Route Advisors.
Independent He has extensive experience in the banking sector

P K Mandloi
Director and guides the Company in financial matters.
Independent He is a Doctorate in agriculture and looks after

Dr. R S Sisodia
Director quality control areas R&D.

Corporate Social Responsibility
• The Garg family are founders of a school teaching
1,200 students from nearby rural areas.
• A not-for-profit organization, it is the only school in

Morena that has high education standards, state of
the art computers and recreational facility like horse
riding and ample greenery.
• The Company has been instrumental in promoting

local brick industry using Company’s coal ash
remnants from boiler
• The Company employs about 3,500 people, directly &

indirectly.
• It supports 50,000 families like farmers supplying

their produce and dependent downstream industries
like transporters, brick factories, farmers, distributors,
etc.

Awards & Recognition
Business Today
5th Most Investor Friendly Company
Best Value Creator

2008 (small cap)
Oilman of
the year
BW REAL 500
sound companies
a Premier Association of Vegetable Oil Industry & Trade
Highest Processor The Economic Times

of Rapeseed Oilcake
2004-05 | 2005-06
ET500
2006-07 | 2007-08 KS Oils is one of the fastest
2008-09 growing companies in India.

Shareholding Pattern
As on 30th June, 2010
Note: The Company had allotted 62,247,230 equity shares of Re. 1 each in favour of the Custodian
underlying three GDR's Issues of total USD 64 Million.

K S Oils Operations
• Mustard oil (Double Sher & Kalash brands)

Products and • Refined oils (Kalash, KS Refined & KS Gold brands)
Brands
• Vanaspati (KS Gold & KS Gold Plus brands)
• Sales through C&F Agents and Company Depots

Distribution • North-East and Eastern Region: goods dispatched to branches and
depots via. Railway racks and sold directly to Distributors.
• Facilities located in Madhya Pradesh, Rajasthan & West Bengal

• Total installed capacity
Manufacturing
• Crushing Capacity – 4,400 MT/ day • Solvent Extraction – 4,200 MT/ day
• Refinery – 1,600 MT/ day • Vanaspati – 250 MT/ day
• Sourcing: mustard seeds from Rajasthan, M.P., U.P. and Delhi
Sourcing
• The Company also does bulk sourcing of seeds from NAFED
• Bulk crude oil is either imported or sourced from Madhya Pradesh and Delhi

Financial Performance Summary
INR in millions
Margin
SWOT Analysis
• Management experience of decades in this business
Strengths
• Largest integrated solvent/ rapeseed crushing capacity in India
• Established brands in crude mustard oil, refined oil and vanaspati
• Efficient and flexible manufacturing facilities
• Captive power production (92 windmills - 78 MW)
• Loyal customer base
• Secure raw material supply
• Extensive distribution network
• Among the highest margin earners in the Indian Edible Oils sector

SWOT Analysis
Weakness
Opportunity
• Ongoing consolidation in the • Currently limited presence in
mustard/ domestic oilseed sector West India and no presence
and conversion of unorganized
in South India
(70%) to organized market (30%)
• Continued growth in the Indian
edible oil industry fuelling need
for organic growth through
greenfield projects to tap other
cultivating regions • Competition from substitutes
• Backward integration (refined edible oil brands) for
Threats
KSOL’s refined oil products
(plantations and power
generation) and forward • Weak regulatory environment in
integration (value added products India – spurious and adulterated
for personal care and oleo oil being available in the market
chemicals)

Company’s Products
and Markets

Company’s Brands
The Company has established brands with high brand recall in their respective segments:
Kalash is the flagship brand for mustard oil well

known for purity, pungency and colour
Mustard Oil
Double Sher has 30% market share in North
(Kalash and Double Sher)
East India and enjoys a premium over other
brands. It has high penetration and acceptance
in the rural areas
Refined Oils Brand extensions for refined oil with high

(Kalash, KS and customer recall for purity
KS Gold)
Vanaspati
KS and KS Gold are well accepted brands in the
(KS Gold and refined oil as well as Vanaspati segments.
KS Gold Plus)

Manufacturing

Manufacturing
Strategic Locations
The manufacturing units are located in
Morena, Ratlam, Guna in Madhya Pradesh
and Kota in Rajasthan and a Port based
Refinery in Haldia, West Bengal
Ability to process Integrated Packaging

varied oilseeds and The operations of the Company are fully integrated with in-
any crude edible oil house packaging department which completely meets the
The facility is well Company’s requirements of tin, HDPE jars, pouches and
equipped to switch to PET bottles
processing of any
crude edible oil
Operationally efficient
The integrated nature of the manufacturing units of the
Company’s divisions is a very important source of KSOL’s high
profitability. Significant operational efficiencies by reducing power
and fuel costs, chemical costs and increasing automation have
been achieved
Manufacturing
Factories
One of the most modern and integrated state-of-the-art
edible oil manufacturing plants in India
Current Capacity
Total Current
Division
Capacity
Crushing 4,400 MT/day
Solvent Extraction 4,200 MT/day
Refinery 1,600 MT/day
Vanaspati 250 MT/day

Manufacturing – Integrated Process Flow Chart

Mustard Kachchi Ghani (Crude) Oil
• Kohllu has been traditionally used in the
manufacture of mustard oil; in the process the
seeds are broken in open air, during the process
certain enzyme is released. This enzyme provides
the pungency to the oil.
• Pungent mustard oil/ Kachchi Ghani is very popular
in the northern, eastern and north-eastern states of
India
• The process of extracting oil using only expellers
results in high temperatures thus losing its
pungency. In the Kohllu process, temperatures are
controlled to maintain the pungency and hence, the Rapeseed
Kohllu process is critical from consumers need and
preference for pungency in mustard oil
• The process begins with the cleaning of the
mustard seeds which are then loaded through
conveyor belts in to the Kohllus (cold press
crushers)

Mustard Kachchi Ghani (Crude) Oil
• The Company has skilled labour trained in the
art of manufacturing pungent oil through this
method
• Manufacturing Kachchi Ghani oil from Kohllu is
relatively less scalable, thus creating significant
entry barriers for new players.
• 22% oil is obtained in the Kohllu, which is
extremely pungent and inedible (pungency
factor of ~0.38). The residue oil cake is further
processed in the expellers. This results in 13%
oil which has pungency of ~0.12.
• Both the oils obtained (i.e. from Kohllus and the Kohllu – Cold press crusher for high
expellers) are blended to obtain the perfect pungency Mustard Oil
blend of edible oil with pungency of ~0.27 to
0.28
• The mustard Oil cake is then fed into solvent
extractor via conveyors to extract the remaining
oil .
Other facilities
Solvent Extraction
The mustard oil cake in the solvent extractor is sprayed
with Hexane, which extracts the remaining 7% oil.
Through the distillation method, the hexane is separated
completely to yield solvented oil. The deoiled cake is
exported as cattle feed to south-east Asia, South Korea &
China. The solvented oil is sent for refining
This solvent extraction process is used for soyabean Solvent Extractor

seeds as well, from which ~ 18% oil is extracted
Refinery
Refining of oil refers to neutralised, bleached and de-odorised oil. The process is carried out in
vacuum at high temperatures
Vanaspati
The process involves hydrogenation of refined oil. Vanaspati obtained is filled into containers
and taken for cold room treatment where the temperature is reduced in a controlled manner
which facilitates the final finishing required for the grainy texture

Other Facilities
Packaging
In-house packaging department completely meets the
Company's requirements of tin, HDPE jars, pouches and
PET bottles. The equipment includes offset printers,
pouch filling machines, tin automatic filling machine and
automatic bottle filling plant
Power
Captive Power production capacity of over
92 Windmills (78 MW)
Quality Control (“QC”)

Effluent Treatment The QC lab does standardization as per
The effluent treatment plant handles the AGMARK, V.Q.P and P.F.A. parameters
entire effluents of K S Oils. The effluent
treated water is completely recycled in-house The Company was awarded the ISO 9001:2000
resulting in zero release of effluents certification for Quality Management Systems for
Manufacturing and Supply of Edible Oils
Markets and
Distribution

Markets and Distribution
Markets Distribution Network
Company’s markets are classified For each market mentioned, the Company
as: has a distribution network:
• North East region (NE) & East • For the East and NE Region, goods are
(West Bengal & Bihar) where transported through railway racks. Kolkata,
the Company is the market Guwahati and Dimapur are the major
leader and which contributes ~ railway arrival points for the Company’s
28% of Company’s oil revenues; goods in this region. The Company has its
• Central & North India - Uttar own depots in these stations.
Pradesh, Madhya Pradesh, • For the rest of India, the Company has set
Delhi, Rajasthan, Himachal, up a network of C&Fs and Depots to cater
Haryana, Punjab and Jammu & to Distributors and Wholesalers.
Kashmir.
The company has 1,313 Distributors and over 200,000 retailers serviced by the
company’s 275 member strong marketing team
Historical Financial
Performance

Historical Profit & Loss Statement INR. Mn.
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10

(A) (A) (A) (A) (A)
Total Income 6,082 10,716 20,572 31,782 40,997
Less: Raw Materials 5,290 9,073 16,874 25,625 33,454
Manufacturing Exps. – Direct 251 313 526 633 946
Gross Profit 541 1,330 3,172 5,494 6,597

Expenditure
Selling Expenses 138 238 499 771 884
Administration Expenses 131 154 354 1,102 953
Operating EBITA 272 938 2,319 3,621 4,760
Depreciation 29 45 122 268 529
EBIT 243 893 2,197 3,353 4,231
Interest and Finance Charges 72 154 375 743 1,564

PBT 172 739 1,822 2,610 2,668
Provision for Taxation 24 166 615 916 423
PAT 148 573 1,207 1,694 2,245

Analysis
This growth was on account of high growth in

Company’s revenues touched INR revenues of the Mustard and Refined oils, new
40,00o mn. in FY10, growing over 6 capacity additions and geographical expansion
into newer markets.
times in last 5 years from INR 6,082
mn. in FY 2006
Overall EBITDA increased by 17.5

This leap was driven by increase in sales of
times from INR 272 mn. in FY 2006 branded products and increase in sale of
to 4,760 mn. in FY 2009 small SKUs.

Historical Balance sheet INR Mn.
Mar-06
Particulars+ Mar-07 (A) Mar-08 (A) Mar-09 (A) Mar-09 (A)
(A)
Sources of Funds:
Shareholders Funds
Share Capital 85 221 332 356 409
Equity Share Entitlement Warrants 0 238 500 0 713
Deferred Government Grants 11 10 9 9 8
Reserves and Surplus 373 1,434 6101 8,707 13,395
468 1,903 6,942 9,072 14,525
Loan Funds:
Secured Loans 788 852 2,847 9,319 14,773
Unsecured Loans 86 150 0 0 0
874 1,002 2,847 9,319 14,773
Deferred Tax Liability 0 155 415 1,051 999
Total 1,341 3,060 10,204 19,442 30,297
Application of Funds
Fixed Assets
Gross Block 597 1,378 2,904 6,920 11,738
Less: Accumulated Depreciation 159 203 324 589 1,118
Net Block 438 1,175 2,580 6,331 10,620
Capital WIP 0 169 1,837 3,535 787
Investments 185 779 1,960
Current Assets, Loans and Advances
Inventories 1,552 2,477 4,414 9,747 17,174
Sundry Debtors 154 139 1,064 1,208 2,310
Cash and Bank 61 131 1,496 666 1,236
Loans and Advances + Deposits + other Current
57 454 2,068 1,905 3,795
Assets
Total Current Assets 1,824 3,201 9,042 13,526 24,515
Less: Current Liabilities and Provisions
Current Liabilities 875 1,273 2,826 3,818 6,712
Provisions 46 235 614 911 873
921 1,508 3,440 4,729 7,585
Net Current Assets 903 1,693 5,602 8,797 16,930
Misc. Expenditure 0 23 0 0 0
Total 1,341 3,060 10,204 19,442 30,297
1st Qtr. - FY 11 (Unaudited)
in INR Mn.
Particulars Amount
Total Revenue 10,324
EBIDTA 1,173
Interest 437
Depreciation 155
PBT 581
Current Tax 57
Deferred Tax 19
Net Profit after Tax 505

Changes in Capital Structure
Particulars Date No. of Equity Shares Amount (INR)
Equity Share Capital as on 31.03.2006 8,392,900 83,929,000

107,100 forefited shares allotted on reissuance 12.08.2006 107,100 1,071,000
Equity shares allotted on Pref. basis (INR 225 per share) 19.08.2006 900,000 9,000,000
Bonus in Ratio of 1:1 11.09.2006 9,400,000 94,000,000
Equity Shares Allotted to CVC at INR180 per share 23.12.2006 3,291,656 32,916,560
Warrants issued to CVC – 1,708,344* & Promoters – 2,300,000** at INR 180
per warrant 23.12.2006
Equity Share Capital as on 31.03.2007 22,091,656 220,916,560
Shares Split in Ratio of 1:10 25.07.2007 220,916,560 220,916,560
Equity Shares Allotted to Baring Pvt. Equity Asia III at INR 41.9 per share 22.08.2007 21,479,710 21,479,710
Equity Shares Allotted to CVC Trustees at INR 41.9 per share 22.08.2007 90,720 90,720
Warrants issued to Promoters – 23,866,350*** at INR 41.9 per warrant
30,744,610 equity shares of Re. 1/- each (at INR41.9 per share) underlying
the GDR's Issue of USD 31.42 Mn. 07.09.2007 30,744,610 30,744,610
273,231,600 273,231,600
Warrants converted by Promoters** 22.10.2007 23,000,000 23,000,000
19,093,100 equity shares of Re. 1/- each (at INR41.9 per share) underlying
the GDR's Issue of USD 20.53 Mn. 08.11.2007 19,093,100 19,093,100
Warrants converted by CVC* 26.03.2008 17,083,440 17,083,440
Warrants converted by Promoters*** 25.10.2008 23,866,350 23,866,350
Equity Shares Allotted to New Silk Route Advisors at INR 48.43 per share 01.07.2009 27,921,406 27,921,406
12,409,520 equity shares of Re. 1/- each (at INR 48.43 per share) underlying
the GDR's Issue of ~ USD 12.5 Mn to New Silk Route Advisors 15.07.2009 12,409,520 12,409,520
396,605,416 396,605,416
Warrants issued to Promoters – 28,807,339 at INR 54.5 per warrant**** 01.07.2009
Warrants to be issued to CVC – 8,672,566 at INR 56.5 per warrant**** 01.07.2009
Warrants issued to Baring Pvt. Equity , Asia III – 8,672,566 at INR 56.5 per
warrant**** 01.07.2009
Warrants converted by Promoters**** 29.01.2010 12,346,002 12,346,002
Total issued Equity 408,951,418 408,951,418
Total diluted Equity 442,757,887 442,757,887
**,*** Promoters paid 50% money upfront at the time of subscription of warrants.
**** Paid 25% money upfront at the time of subscription of warrants.
Strategy &
Growth Initiatives

K S Oils – Where does it stand today!
Largest rapeseed crushing capacity in
India 4,400 MT/day
• Four times more than the nearest
competitor (Gokul Refoils – 690 MT/
day)
1
• Integrated manufacturing facilities
across 5 locations in oilseeds belt.
Market leader ~ 12.5% market share

of mustard oil market (INR 130 Bn.) Dominant market share in mustard oil
in 7 north east states with nearly
25% share of the organized mustard 30% market share – brands include
oil market. Double Sher and Kalash.

Vision
To deliver Health and Prosperity
To achieve a turnover of INR 8 bn by 2013
To consolidate market leadership position by achieving

20% market share in mustard oil
To accelerate the conversion of the loose unbranded

edible oil market to the branded retail market

Key Objectives
• extend reach to Tier II and Tier III towns and rural India
Distribution
• strengthen existing presence in Central, Northern and Eastern
India
• create distribution network in Western India
• brand power and obtain better pricing power
Increase • market share from the current 12.5% to 20% in the Mustard
segment
• proportion of retail packs
Improve utilization levels of its inland Lead in improving yields

oilseeds crushing facilities and port based of rapeseed and
refinery soyabean farmers

Strategy – Way ahead
Crude Oil
Production
Plantation Processing &

Products
Refining
Final Distribution
Farms
Global and Domestic Growth options

Backward and Forward integration
Secure raw material supply globally & source it

from best yield geographies

De-risking strategy
Global de-risking strategy for raw material supply

- owning palm plantations across the globe
• Proof of concept Aug. 2007

364 hect. of palm plantation in Malaysia
• Fortifying strategy Mar. 2008

20,000 hect. of palm plantation land in Indonesia
• New acquisitions in 2009

35,500 hect. of palm plantation lands in Indonesia
“ Self sufficiency by global agri-companies in raw

“
material sourcing will help insulate against short
supplies and spiraling prices.
REPORT
Indonesia

Oil Palm Cycle

Nursery
Several factors are taken into On each plantation, the Company

consideration when deciding the intends to build the appropriate
location of pre-nurseries to grow infrastructure to bring water sources to
seedlings, including a nearby source of seedlings and allow smooth drainage.
water, flat land, good drainage and
proximity to sources of labor.

Immature Plantation

Immature Plantation

Palm Tree

Palm Seed and Fruit

Mature Plantation

FFB harvesting

Thank You
K S Oils Limited
Registered and Corporate Office -
Jiwaji Ganj, Morena 476 001, Madhya Pradesh - India.
Phone: +91 7532 300000 • Fax: +91 7532 405060
email: investors@ksoils.com

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Delivering Health

526209 KSOILS KSO@IN KSOI.BO

© 2010, K S Oils Limited. All Rights Reserved.

Section Slide No.

Company’s Products and Markets 38

Markets and Distribution 48

Historical Financial Performance 50

Strategy & Growth Initiatives 56

Delivering Health and Prosperity • www.ksoils.com 2

Delivering Health and Prosperity • www.ksoils.com 3

K S Oils Limited (“KSO" or “K S Oils” or “the

Code: 526209 Code: KSOILS

Delivering Health and Prosperity • www.ksoils.com 4

Madhya Pradesh Rajasthan W. Bengal

Strong Distribution Strong brands

Delivering Health and Prosperity • www.ksoils.com 6

Largest rapeseed crusher in

K S Oils is well- Strong distribution network

Delivering Health and Prosperity • www.ksoils.com 7

Excellent Track Record

• Revenues have grown at a CAGR of 46%

• Part of an established business house belonging to

Delivering Health and Prosperity • www.ksoils.com 9

Delivering Health and Prosperity • www.ksoils.com 10

1990-91: 81.8 Mn. MT 2008-09 : 163.15 Mn. MT

Other PKO &

Source: Oilworld (www.oilworld.biz)

Delivering Health and Prosperity • www.ksoils.com 11

zero level import duties by government to

Delivering Health and Prosperity • www.ksoils.com 12

With an annual consumption of ~ 17 mn tons, the per capita consumption is at 14.5

Delivering Health and Prosperity • www.ksoils.com 13

• Mustard, soyabean and palm oil account for over 75% of

Delivering Health and Prosperity • www.ksoils.com 14

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iv. BUTTER, as Fat (as per Oilworld) 2.16

Grand Total 32.92 23.46 9.46 27.27 10.04

Delivering Health and Prosperity • www.ksoils.com 16

Minor growing areas

Major growing areas

Minor growing areas

Major growing areas

Location of KSO’s Plants

Delivering Health and Prosperity • www.ksoils.com 18

Nov. 07 to Oct. 08 – 5.61 Mn. MT Nov. 08 to Oct. 09 – 8.18 Mn. MT

Crude Palm Oil

Delivering Health and Prosperity • www.ksoils.com 19

Palm central and south

Soyaben north and central

Delivering Health and Prosperity • www.ksoils.com 20

Total edible oil imports (Million Tonnes) 10

Delivering Health and Prosperity • www.ksoils.com 22

Delivering Health and Prosperity • www.ksoils.com 23

as compared to Safflower Oil 8 77 1 14

all other edible Flaxseed Oil 9 16 57 18

oils Sunflower Oil 12 16 1 71

Rice barn Oil 18 44 38

Saturated Fat Monounsaturated Fat Polyunsaturated Fat

All India Institute of Medical St. John’s Medical College

“ Use of mustard oil was associated

• Alpha Linolenic acid reduces the

Delivering Health and Prosperity • www.ksoils.com 25

Delivering Health and Prosperity • www.ksoils.com 26