Ruchi Soya Industries Ltd

About the Company:

Ruchi Soya Industries is one of the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining companies in India.

Ruchi Soya being the pioneers and largest manufacturers of soya foods has aided company’s brand ‘Nutrela’ in becoming a household and generic name in India.

Company’s robust brands portfolio of ‘Mahakosh’, ‘Ruchi Gold’, ‘Ruchi Star’, ‘Sunrich’, ‘Soyumm’, ‘Tulsi’, ‘Ruchi No.1’, ‘Bakefat’, ‘Avanti’, and vanaspati and other brands, are well positioned in the market.

Leveraging upon the brand ‘Nutrela’, company has launched a range of premium edible oils and blended edible oils and ‘Nutrela High Protein Chakki Atta’ and ‘Nutrela Honey’ in Fiscal 2021.

In Fiscal 2022, company has also forayed into a niche and a high growth FMHG segment with the launch of Nutraceutical business.

Company has presence across the entire value chain in palm and soya segment, with a healthy mix of upstream and downstream business.

 

 

Company is a part of Patanjali Group:

Ruchi Soya was taken over by the Patanjali group, post the takeover company has successfully turnaround the financials of the company.

Company is a part of the Patanjali group, one of India’s leading FMCG and health and wellness company. Their portfolio includes health and ayurvedic products, cosmetics, processed food, beverages and juices, and personal and home care products.

Company leverages Patanjali Ayurved’s sourcing capabilities, technical know-how and benefit from Patanjali Ayurved’s in-depth understanding of local markets, extensive experience in manufacturing of FMCG products and trading and advanced logistics network in India.

 

Company’s Business Verticals:

  • Edible oil, its by-products and derivatives.
  • Edible Soya Flour and Textured Soya Protein (“TSP”).
  • Honey and Atta (flour).
  • Oil Palm Plantation.
  • Biscuits, cookies and rusks.
  • Noodles and breakfast cereals.
  • Nutraceuticals and wellness Products.
  • Renewable Energy – Wind Power.
  • Oleochemicals.

 

 

Details about all the business verticals:

Edible oil, its by-products and derivatives Business:

Company is one of the largest integrated oil seed solvent extraction and edible oil refining company in India.

Company is recognized amongst the largest branded oil packaged food company with a strong portfolio of brands in various types of cooking oils under categories such as palm, soyabean, mustard, sunflower, cottonseed etc.

Company’s robust brands portfolio of ‘Mahakosh’, ‘Ruchi Gold’, ‘Ruchi Star’, ‘Sunrich’, ‘Soyumm’, ‘Tulsi’, ‘Ruchi No.1’, ‘Bakefat’, ‘Avanti’, and vanaspati and other brands, are well positioned in the market.

‘Ruchi Gold’ has a market leadership position, on account of being India’s highest selling palm oil brand.

 

Edible Soya Flour and Textured Soya Protein (“TSP”) Business.

Company launched soya chunks in the 1980’s through own brand ‘Nutrela’ as a high-protein add-on to vegetables.

Company had pioneered the concept of soya chunks three decades ago and ‘Nutrela’ has become a household and generic name for textured soya protein, throughout India with a 40% market share in branded TSP as on March 31, 2020.

 

Honey and Atta (flour) Business.

Leveraging the brand ‘Nutrela’ associated with nutrition and good health, company launched ‘Nutrela High Protein Chakki Atta’ and ‘Nutrela Honey’ in Fiscal 2021.

 

 

Oil Palm Plantation Business: 

Initially through acquisitions and direct allotment of zones by state governments for development of oil palm, company ventured into oil palm plantation development business as a route to backward integration and are now one of the largest palm plantation companies in India.

Currently ‘Ruchi Oil Palm’ is reckoned as one of the top player in this segment in India with the largest allocated zone of 2,55,207 hectares.Of the aforesaid company has developed 53,981 hectares as of December 31, 2020.

 

Biscuits, cookies and rusks Business: 

In line with company’s strategy to strengthen the position as a leading FMCG player, company forayed into biscuits, cookies, rusk and other associated bakery products category in May 2021.

 

Noodles and breakfast cereals Business:

Company’s noodles and breakfast cereals business focuses on manufacture and sale of healthier version(non-maida) of noodles predominantly available in India with high contents of fibre and protein and are sold under the ‘Patanjali’ brand.

 

Nutraceuticals and wellness Products Business:

Company has recently forayed into the nutraceutical and wellness product space to take benefit from the experience of the Patanjali group which is an experienced
player in natural and ayurvedic FMHG segment.

The Nutraceuticals are launched under the joint branding of ‘Patanjali’ and ‘Nutrela’.

 

 

Oleochemicals Business.

Company’s downstream business of oleochemicals utilizes the by-products produced primarily from our edible oil refineries.

Company manufactures products like soap noodles, glycerine, distilled fatty acids as well as value-based products of castor oil, soya and palm-based derivatives, which have application in wide array of sectors like grease, lubricants, paints, crayons, personal care, cosmetics, pharmaceuticals etc.

 

Renewable Energy – Wind Power Business:

To counter the carbon foot-print, company also generates power from renewable energy sources. As on December 31, 2020, company generated wind power at a total aggregate amount of 85.2 MW across eleven locations and six states.

 

 

Company’s Revenue from Various Brands: (in lakhs

 

 

Company’s Distribution Network:

Company’s are sold through a pan India network of over 100 sale depots, 4,763 distributors who in turn reach out, directly to 4,57,788 retail outlets (general trade channel) in the urban, semi-urban and rural areas of the country.

Company is also increasing focus on modern trade and e-commerce platforms like Big Basket. The edible oil and soya products are also retailed through Wal-Mart India, More Retail Pvt Ltd and Spencer’s Retail.

 

 

Market Leaders in various Edible Oils segments.

 

 

Objectives of the Issue:

Fresh Issue: (Rs.)

  • Repayment and/ or prepayment, in full or part, of certain borrowings availed by the Company.
  • Funding incremental working capital requirements of the Company.
  • General corporate purposes.

 

 

 

Management Team:

  1. Mr. Acharya Balkrishna (Designation: Chairman and Non-Executive Non- Independent Director)
  2. Mr. Ramdev (Designation: Non-Executive Non-Independent Director)
  3. Mr. Ram Bharat (Designation: Managing Director)

 

 

 

Positives for the Company:

Strong promoter pedigree of the Swami Ramdev led Patanjali group, a leading FMCG and wellness-oriented brand.

  • Company benefits from the strong parentage of Promoters. Patanjali Ayurved Limited, one of our Promoters, has a proven track record of being involved in the FMCG sector in India.
  • Company leverages Patanjali Ayurved’s sourcing capabilities, technical know-how and benefit from the Patanjali Ayurved’s in-depth understanding of local markets, its brands, extensive experience in manufacturing of FMCG products and trading and advanced logistics network in India.

 

 

Company’s products enjoy strong brand recognition in the Indian market.

  • Company’s brand ‘Nutrela’ is synonymous with TSP and is a household and generic name.
  • Company’s nutraceuticals brand Patanjali – Nutrela is focused on health and wellness and reaps the benefits of the association with a proven brand like, Patanjali.
  • Company’s robust brands portfolio comprises of Nutrela, Mahakosh, Ruchi Gold, Ruchi Star, Sunrich, Soyumm and other brands, which are well positioned in the market.
  • Ruchi Gold has market leadership position on account of being India’s highest selling palm oil brand.

 

 

Strong, established and extensive distribution network.

Company has a strong, established and extensive distribution network in India.

Company’s products are sold through a pan India network of over 100 sale depots, 4,763 distributors who in turn reach out, directly to 4,57,788 retail outlets (general trade channel) in the urban, semi-urban and rural areas of the country.

 

Foray into health and wellness space with launch of Nutraceuticals.

  • Presently, India is experiencing a spate of lifestyle changes and a corresponding rise in lifestyle diseases, including diabetes, high blood pressure, obesity and cardiovascular problems.
  • This has increased the demand for nutritional supplements among upper and middle-class consumers. Nutraceutical intake is growing in popularity as consumers look for products to boost energy and health, especially given the current Covid-19 situation.
  • The demand for dietary supplements such as tablets, capsules, powders, liquids, soft caps and soft gels is increasing.
  • Company’s association with Patanjali, that has been into the natural health and wellness space, for over a decade, will support company’s entry into the nutraceuticals space.

 

 

Presence across mass, value and premium segment.

  • Company’s diversified product portfolio enables company to cater to a wide range of tastes, preferences, price points and consumer segments.
  • Ruchi Gold’ brand is focused as a “mass” brand focused on the middle and lower-income segments, ‘Mahakosh’ brand is focused on the middle-income segment and ‘Nutrela’ brand is positioned as a premium brand.
  • As company has products in the premium as well as mass market categories, which makes company’s products less susceptible to shifts in consumer preferences, market trends and risks of operating in a particular product category.

 

 

Entry into high margin premium food portfolio through the Nutrela brand.

  • ‘Nutrela’ is the leading brand in TSP and enjoys a high recall amongst consumers, As a strategy, company has expanded the ‘Nutrela’ brand portfolio from soya chunks to manufacture and sell Nutrela honey, Nutrela High Protein Atta and Nutrela Gold (blended oil) and will continue to launch new and premium products under this umbrella brand.

 

 

Financials of the Company:

(in Crores) FY 18 FY 19 FY 20 FY 21
Revenue 12,029.3 12,829.2 13,175.3 Will be Updated
Net Profit (-5,573.2) 34.12 7,714.6 Will be Updated

 

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Ruchi Soya Industries Ltd 2 876.88 TBA 4950.6% 126.80
Adani Wilmar Ltd 1 6.37 TBA 22.06% 28.86
Hindustan Unilever Ltd 1 34.03 68.57 16.8% 202.99
Britannia Industries Ltd 1 77.43 44.23 51.6% 148.80
Tata Consumer Products Ltd 1 9.30 81.32 6.0% 169.57
Dabur India Ltd 1 9.58 62.90 22.0% 43.57
Nestle India Limited 10 215.98 81.96 103.1% 209.44

 

 

IPO Details:

Details Info
Issue Opens on Coming Soon
Issue Closes on:. Coming Soon
Issue Price Will be Updated
Face Value Will be Updated
Retail Category Allocation Will be Updated
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior Will be Updated
Equity Shares after the issue Will be Updated

Also Read : List of Upcoming IPO’s in India.

 

Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
876.88 Will be Updated 4950.6% 126.80

 

 

Check IPO Allotment Status:

Link InTime : https://linkintime.co.in/PublicIssue/

BSE IPO Website: https://www.bseindia.com/IPO/Allotment

 

Company Contact Info:
Ruchi Soya Industries Limited
Ruchi House
Royal Palms, Survey No. 169,
Aarey Milk Colony, Near Mayur Nagar,
Goregaon (East)
Mumbai – 400 065 Maharashtra
Tel: +91-22-61090100 / 200
Email: ruchisoyasecretarial@ruchisoya.com
Website: www.ruchisoya.com

 

IPO Registrar Info:
Link Intime India Private Limited
C-101, 247 Park
L.B.S Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra
Tel: +91 22 4918 6200
E-mail: ruchisoya.fpo@linkintime.co.in
Website: www.linkintime.co.in