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Edible oil and soya nugget manufacturer Ruchi Soya Industries is expecting a 15-20 per cent growth in turnover over the next two years, banking primarily on increased demand for packaged variants.
According to Satendra Aggarwal, Chief Operating Officer, edible oil accounts for over 53 per cent or Rs 16,000 crore of its Rs 30,000 crore turnover. Soya nuggets and byproducts, used as animal feed, account for the remaining, including exports worth of Rs 5,000 crore.
“We are concentrating primarily on the edible oil segment and are expecting a 15 to 20 per cent growth in the coming two years,” he told reporters on the sidelines of the re-lauch of its 'Sunrich' oil brand.
Among the edible oil variants, palmolein, mustard, soya and sunflower continue to be the dominant categories. The company has a presence in these segments through the brands 'Nutrela', 'Mahakosh', 'Ruchi Gold' and 'Sunrich'. It has a 27 per cent market share in the edible oils market.
Research figures, Aggarwal indicated, saw the edible oils market touch 22 million tonnes per annum (MTPA) by 2015 from the present levels of 15 MTPA.
Capacity expansion
According to him, there was no immediate requirement for capacity expansion at its existing units.
Ruchi Soya currently has 18 units - six refineries and 12 crushing units - with a total refining capacity of 4.2 MTPA and 3 MTPA crushing capacity.
“Our plants have an average capacity utilisation of 50-60 per cent and hence we do not need any immediate investments to expand capacities,” Aggarwal said.
Some investments, he said, are likely to take place in upgrading the plants and the packaging facilities.
Ready - to-Eat segment
The company is also exploring the possibility of entering the ready-to-eat segment in two years.
According to the COO, discussions were in a nascent stage. “We have some joint ventures and there are discussions on exploring the ready-to-eat segment,” he said.
Ready-to-eat offerings are likely to cover both breakfast and meal (lunch and dinner) segments.
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