GICS Industry: Food Products l Sub Industry: Packaged Foods & Meats l Website: www.ruchisoya.

com

Ruchi Soya Industries Ltd

Key Stock Indicators

NSE Ticker: RUCHISOYA CMP (as on 21 Jan 2011—Rs/share): 109.8 Shares outstanding (mn): 311
Bloomberg Ticker: RSI:IN 52-week range up to 21 Jan 2011 (Rs) (H/L): 141.05/83.00 Free Float (%): 51.5
Face value / Share: 2.0 Market Cap as on 21 Jan 2011 (Rs mn): 34,147 Average daily volumes (12 months): 1,387,272
Div. Yield (%): 0.5 Enterprise Value as on 21 Jan 2011 (Rs mn): 42,701 Beta (2 year): 1.4
Div. Yield (%): 0.0

Ruchi Soya Industries Limited (RSIL) is the flagship company of the Ruchi group. It was incorporated
in 1986. RSIL is the largest manufacturer and supplier of edible oil and soya foods in India. The Key Financial Indicators
company has over 2.2 million tonnes per annum (mtpa) of refining and over 4.1 mtpa of crushing Mar-08 Mar-09 Mar-10
capacities, spread across India.
Revenue (Rs mn) 117,289.7 127,356.7 143,895.4
KEY HIGHLIGHTS EBITDA ma rgi ns (%) 4.1 2.0 3.4
PAT (Rs mn) 1,657.9 974.8 1,777.0
Established player in soya industry with strong distribution network
PAT ma rgi ns (%) 1.4 0.8 1.2
RSIL has a strong position in the edible oils segment, with a market share of ~15%. This segment
accounted for ~73% of total sales in FY10. RSIL derives ~27% of its revenue from other segments. Gea ri ng (x) 2.1 1.8 1.7
They are: extraction (14%), vanaspati (6%), food products (2%) and others (7%). It has EPS (Rs /s ha re) 8.8 5.2 6.8
manufacturing facilities across 21 locations in India. The company has 86 company depots (with PE (x) 10.0 4.3 16.2
storage and other logistical facilities) which serve 4,230 distributors across the country, reaching
510,000 retail outlets. RSIL has a strong customer base, with companies such as Parle, Britannia
P/BV (x) 1.5 0.4 1.8
Industries, Cadbury India, Nestle India, Lotte India, Bunge India etc as clients. Its branded oil RoCE (%) 15.0 8.8 12.2
segment consists of strong brands such as Nutrela, Ruchi Gold, Mahakosh, Ruchi Star, Sunrich, etc. RoE (%) 17.0 8.6 12.8
EV/EBITDA (x) 5.7 4.6 7.6
Strong existence in niche market of soyabean meal
n.m. : Not meaningful
RSIL is one of the largest crushers of soyabean in India and presently has installed crushing capacity
of ~4.1 mtpa across 12 plants. RSIL, with annual export of about 600,000 tonnes, has also become
one of the largest exporters of Indian soyabean meal. Soyabean meal (de-oiled extractions/ cake) is Shareholding (As on September 30, 2010)
obtained after crushing of seed and extraction of oil by solvent extraction process. Soyabean meal
FII DII Others
is the most valuable raw material for preparing poultry/ aqua/ animal feed in the world market as it
15% 2% 35%
contains a very high percentage of protein. RSIL produces different grades of soyabean meal viz de-
hulled, high pro and normal FAQ varieties. The demand for soyabean meal comes mainly from
Southeast Asia, the Far East and Middle East markets.

Focusing on palm plantation activities by mergers and acquisitions

RSIL has ~175,000 hectares of land in India for palm oil plantation. The company consolidated its
position in palm plantation activities by merging with Mac Oil Palm Ltd and Palm Tech India Ltd.
This consolidation will enable RSIL to sustain its leadership and have a formidable presence in the
southern market of India, both in terms of sourcing and marketing. Merger of Mac Oil and Palm
Tech with RSIL also supports initiatives such as promotion, development and processing of oil palm
plantations in India. RSIL has set up 2 wholly-owned subsidiary — Ruchi Industries Pte Ltd in Promoter
Singapore, and Ruchi Ethiopia Holding Ltd in Dubai, for investing in plantation activities outside 48%
India.
Indexed price chart
KEY RISKS
• Adverse climatic conditions (index) ('000)
180 25000
• Intense competition by organised and unorganised players 160
140 20000
• Volatility in commodity price and foreign exchange fluctuations — exports contributed ~20%
of total revenue in FY10 120
15000
100
Stock Performances vis-à-vis market 80
10000
Returns (%) 60
40 5000
YTD 1-m 3-m 12-m 20
0 0
RUCHISOYA 11 6 -19 16
Feb-10

Apr-10

Jun-10
Jul-10
Aug-10

Sep-10
Oct-10

Nov-10
Dec-10
Jan-10

Mar-10

May-10

NIFTY 8 -4 -5 9
Volumes (RHS) RUCHISOYA NIFTY
Note:
1) YTD returns are since Apr 01, 2010 to Jan 21, 2011.
2) 1-m, 3-m and 12-m returns are up to Jan 21, 2011

CRISIL COMPANY REPORT | 1

 Ruchi Soya Industries Ltd
BACKGROUND

RSIL is the flagship company of the Ruchi group. Incorporated in 1986, the company processes over 25 % of the India's soyabean crop. RSIL is the largest manufacturer and
supplier of edible oil and soya foods in India. The company has over 2.2 mtpa of refining and over 4.1 mtpa of crushing capacities. It has manufacturing and trading facilities
for soyabean products, oils and fats, flat steel, galvanised steel and cold rolled steel etc. The group also has an exposure to trading of oil, pulses and other agriculture crops.
Its plants are located in Madhya Pradesh, Karnataka, Maharashtra, West Bengal, Gujarat, Tamil Nadu and Rajasthan. RSIL’s key brands include Nutrela, Ruchi Gold, Ruchi
Star, Sunrich and Mahakosh.

RSIL exports edible oil and other products to Japan, Vietnam, Indonesia, Thailand, the Philippines, South Korea, Taiwan and Middle East countries. It also exports to
countries in the Indian sub-continent such as Bangladesh, Pakistan, Nepal and Sri Lanka. Export contributed ~16% of total revenue in FY10.

COMPETITIVE POSITION

Peer Comparison
Ruchi Soya Gujarat Ambuja
Industries Ltd Exports Agro Tech Foods KS Oils
Mar-10 Mar-10 Mar-10 Mar-10
Revenue (Rs mn) 143,895.4 14,216.6 6,524.4 40,603.2
EBITDA ma rgins (%) 3.4 7.2 5.2 11.2
PAT (Rs mn) 1,777.0 607.2 251.4 2,125.4
PAT ma rgi ns (%) 1.2 4.3 3.9 5.2
Gea ring (x) 1.7 0.4 0.0 1.1
EPS (Rs /s ha re) 6.8 4.4 11.3 4.2
PE (x) 16.2 8.2 33.8 9.9
P/BV (x) 1.8 1.2 5.8 1.1
RoCE (%) 12.2 16.8 27.3 13.7
RoE (%) 12.8 16.8 22.1 15.6
EV/EBITDA (x) 7.6 6.3 0.0 7.0
n.m: Not meaningful

FINANCIAL PROFILE Key Financial Indicators

Healthy growth in top-line with improvement in operating margin in FY10 Units Mar-08 Mar-09 Mar-10
Revenue Rs mil li on 117,289.7 127,356.7 143,895.4
In FY10, the top-line of the company registered a growth of 13% year-on-year on the
back of improved demand both domestically and globally. Top-line grew from Rs EBITDA ma rgins Per cent 4.1 2.0 3.4
127.3 bn in FY09 to Rs 143 bn in FY10. Operating margin improved by 140 bps in PAT Rs mil li on 1,657.9 974.8 1,777.0
FY10 to 3.4%, from 2% in FY09, mainly because of improved realisations from edible
oils, extractions and vanaspati. PAT ma rgi ns Per cent 1.4 0.8 1.2
Revenue growth Per cent 29.5 8.6 13.0
PAT increased significantly in FY10, from 0.9 bn in FY09 to Rs 1.7 bn (an increase of
82%). The increase in PAT was on account of higher operating profit, which grew EBITDA growth Per cent 37.1 -46.1 91.8
91% in FY10, income from exceptional items (Rs 35 mn in FY10 against NIL in FY09) PAT growth Per cent 59.9 -41.2 82.3
and absence of fringe benefit tax.
Gea ri ng Ti mes 2.1 1.8 1.7
RoCE Per cent 15.0 8.8 12.2
RoE Per cent 17.0 8.6 12.8
INDUSTRY PROFILE

Edible Oil

The size of the total domestic edible oil industry is around Rs 950 billion. It faces tough competition from the unorganized sector, since branded oil accounts for only 30 per
cent of the total domestic production. Branded edible oil’s demand is price sensitive and is a function of penetration level of organized retail, consumption pattern,
population and overall income levels of a country. Demand in 2008-09 (oilseed season Nov-Oct) increased by a robust 16.5 per cent to 14.8 million tonnes. The higher
demand was met by imports, which grew by 46 per cent to 8.1 million tonnes in 2008-09(Nov-Oct), while domestic production of edible oil fell by 6.5 per cent to 6.68
million tonnes in 2008-09(Nov-Oct)

CRISIL COMPANY REPORT | 2

Ruchi Soya Industries Ltd
ANNUAL RESULTS

Income Statement Balance sheet

(Rs million ) Mar-08 Mar-09 Mar-10 (Rs million ) Mar-08 Mar-09 Mar-10
Net Sales 115,504.0 124,849.7 142,551.1 Equity share capital 377.6 378.8 596.9
Operating Income 117,289.7 127,356.7 143,895.4 Reserves and surplus 10,501.6 11,333.4 15,366.3
Tangible net worth 10,879.2 11,712.1 15,963.2
EBITDA 4,757.1 2,565.2 4,919.3 Deferred tax liablity:|asset| 1,017.8 1,347.8 1,683.8
EBITDA Margin 4.1 2.0 3.4 Long-term debt 5,186.7 5,790.9 5,847.2
Short-term-debt 15,164.2 13,122.2 18,703.7
Depreciation 747.7 857.7 1,004.3 Total debt 20,350.9 18,913.1 24,550.9
Interest 2,129.4 1,520.7 2,084.2 Current liabilities 30,591.7 31,268.1 32,057.6
Other Income 750.5 1,322.4 930.9 Total provisions 225.2 160.2 189.8
Total liabilities 63,064.8 63,401.3 74,445.3
PBT 2,553.6 1,520.1 2,762.5 Gross block 14,971.0 17,380.2 21,402.3
PAT 1,657.9 974.8 1,777.0 Net fixed assets 12,292.0 14,275.0 17,743.5
Investments 959.2 972.3 1,660.8
PAT Margin 1.4 0.8 1.2 Current assets 49,813.6 48,154.0 55,041.0
Receivables 11,798.5 12,808.5 14,674.0
No. of shares (Mn No.) 188.8 188.8 262.9 Inventories 22,185.9 15,261.8 16,184.5
Cash 9,594.7 11,387.3 15,996.8
Earnings per share (EPS) 8.8 5.2 6.8 Total assets 63,064.8 63,401.3 74,445.3

Cash flow Ratio

(Rs million ) Mar-08 Mar-09 Mar-10 Mar-08 Mar-09 Mar-10
Pre-tax profit 2,630.5 1,509.2 2,761.7 Revenue growth (%) 29.5 8.6 13.0
Total tax paid -595.9 -215.3 -649.5 EBITDA growth(%) 37.1 -46.1 91.8
Depreciation 747.7 857.7 1,004.3 PAT growth(%) 59.9 -41.2 82.3
Change in working capital -2,783.5 4,063.5 -1,458.4
EBITDA margins(%) 4.1 2.0 3.4
Cash flow from operating activities -1.2 6,215.1 1,658.1 Tax rate (%) 23.3 14.2 23.1
Capital Expenditure -2,118.7 -2,839.0 -4,460.0 PAT margins (%) 1.4 0.8 1.2
Investments and others -598.4 -13.1 -688.6
Dividend payout (%) 5.7 11.2 8.8
Dividend per share (Rs) 0.4 0.5 0.6
Cash flow from investing activities -2,717.1 -2,852.1 -5,148.6 BV (Rs) 57.6 61.3 60.7
Equity raised/(repaid) 497.9 0.0 359.2 Return on Equity (%) 17.0 8.6 12.8
Debt raised/(repaid) 3,807.1 -1,437.8 5,637.8 Return on capital employed (%) 15.0 8.8 12.2
Dividend (incl. tax) -131.6 -149.2 -186.7
Others (incl extraordinaries) 148.2 16.4 2,289.7 Gearing (x) 2.1 1.8 1.7
Interest coverage (x) 2.2 1.7 2.4
Debt/EBITDA (x) 4.3 7.4 5.0
Cash flow from financing activities 4,321.6 -1,570.6 8,100.0
Change in cash position 1,603.3 1,792.4 4,609.5 Asset turnover (x) 8.4 7.9 7.4
Opening cash 7,991.4 9,594.7 11,387.3 Current ratio (x) 1.1 1.1 1.1
Closing cash 9,594.7 11,387.3 15,996.8 Gross current assets (days) 155 137 138
n.m : Not meaningful;

QUARTERLY RESULTS

Profit and loss account

(Rs million) Sep-10 % of Rev Sep-09 % of Rev Jun-10 % of Rev Sep-10 % of Rev Sep-09 % of Rev
No of Months 3 3 3 6 6
Revenue 38,079.8 100.0 31,952.5 100.0 34,690.5 100.0 72,678.0 100.0 63,073.6 100.0
EBITDA 1,474.8 3.9 1,131.3 3.5 1,093.8 3.2 2,568.6 3.5 2,329.4 3.7
Interes t 207.1 0.5 137.1 0.4 36.8 0.1 243.9 0.3 338.8 0.5
Depreci a ti on 299.5 0.8 237.9 0.7 261.4 0.8 560.9 0.8 452.8 0.7
PBT 968.2 2.5 756.3 2.4 795.6 2.3 1,763.8 2.4 1,537.8 2.4
PAT 636.3 1.7 482.6 1.5 524.1 1.5 1,160.4 1.6 984.1 1.6

CRISIL COMPANY REPORT | 3

Ruchi Soya Industries Ltd
FOCUS CHARTS & TABLES

Rs mn Quarterly sales & y-o-y growth Per cent Rs mn Quarterly PAT & y-o-y growth Per cent
45,000 35 700 1,000
40,000 30 600 800
35,000 25 500
20 600
30,000
15 400
25,000 400
10 300
20,000
5 200
15,000 200
0
10,000 -5 100 0
5,000 -10 0 -200
0 -15

Dec-07

Jun-08

Sep-08
Dec-08

Jun-09
Sep-09

Dec-09

Jun-10
Sep-10
Mar-08

Mar-09

Mar-10
Dec-07

Jun-08
Sep-08
Dec-08

Jun-09
Sep-09
Dec-09

Jun-10
Sep-10
Mar-08

Mar-09

Mar-10
Sales Sales growth y-o-y (RHS) Net Profit Net profit growth y-o-y (RHS)

Rs/share EPS Per cent Movement in operating and net margins

3 5
4.5
2.5 4
3.5
2 3
2.5
1.5
2
1 1.5
1
0.5 0.5
0
Dec-07

Jun-08

Sep-08

Dec-08

Jun-09

Sep-09

Dec-09

Jun-10

Sep-10
0
Mar-08

Mar-09

Mar-10
Dec-07

Jun-08

Sep-08

Dec-08

Jun-09

Sep-09

Dec-09

Jun-10

Sep-10
Mar-08

Mar-09

Mar-10

OPM NPM

Shareholding Pattern (Per cent) Board of Directors

Dec 2009 Mar 2010 Jun 2010 Sep 2010 Director Name Designation
Promoter 36.2 46.9 46.9 48.5 Ka i la s h Cha ndra Sha hra (Mr.) Non-Executive Cha i rma n, Promoter-
FII 26.7 16.7 16.4 14.7 Director
DII 0.8 1.8 2.6 1.7 Dines h Cha ndra Sha hra (Mr.) Ma na gi ng Di rector, Promoter-Di rector
Others 36.3 34.6 34.2 35.1 Sa jeve Deora (Mr.) Non-Executive Di rector
Pra bhu Da ya l Dwi vedi (Mr.) Non-Executive Di rector
Vija y Kuma r Ja in (Mr.) Director
Na vi n Kha ndelwa l (Mr.) Non-Executive Di rector
Muruga n Na va ma ni (Mr.) Non-Executive Di rector
As hutos h Bha il a l Ra o (Mr.) Director
Sa njeev Kuma r As tha na (Mr.) Director

Additional Disclosure
This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT).

Disclaimer
This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as
such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment,
legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial
liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or
redistributed or communicated directly or indirectly in any form to any other person – especially outside India or published or copied in whole or in part, for any purpose.

CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please
contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4