The Hindu Business Line : Ruchi Soya sees 15% topline growth

RUCHI Soya Industries Ltd's consolidated operations are expected to see a topline growth of 15 per cent during the current fiscal, helped mainly by its capacity expansions that have got off ground this year.

The company, in its consolidated entirety, had ended 2003-04 with a turnover of Rs 5,222 crore.

The company has recently commissioned a vegetable oil refining unit at Patalganga primarily to cater to Maharashtra's demands. It is due to commission a 2,000-tonnes-per-day soyabean crushing unit near Nagpur.

This unit has been set up to capture a sizeable crushing business in Maharashtra, which is emerging as a large soyabean producer in the country.

Of the total anticipated soyabean production of 68 lakh tonnes during the 2004-05 season, over 20 lakh tonnes are expected from Maharashtra. The State also has the highest yield per hectare in the country.

"In soyabean crushing, we are the biggest players with a market share of 30 per cent,'' said Mr Dinesh Shahra, Managing Director, Ruchi Soya Industries.

The company is also in the process of growing its branded business. Ruchi Health Foods, a wholly-owned subsidiary, manages the processed foods business.

Ruchi Soya's range of brands include Nutrela textured soya protein, Mandap mustard oil, Sunrich sunflower seed oil, Soyumm refined soybean oil, Ruchi Gold refined palmolein, Ruchi Sona rapeseed oil, Proflo soya flour, and Prosoy soyabean meal.

The company is looking at the possibility of introducing blended oils shortly.

"We would like to shift our focus to branded and packaged products within our portfolio,'' Mr Shahra said. Although bulk commodities account for a larger share of the company's turnover, Mr Shahra said that margins are higher in branded products. The company would like to invest behind its brands in terms of ad spend.

Brand building would be the next phase of growth for the company, according to Mr Shahra.

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