Ruchi Soya sees 15% growth in topline

Post-consolidation, Ruchi Soya Industries Ltd, the flagship of the Ruchi group, expects to achieve a topline growth of 15 per cent in the current financial year vis-a-vis 10 per cent last year, said its vice-president- finance, Suresh Kumar.

The company's bottomline is likely to grow 25 per cent, compared with 20 per cent last year.

"We expect the company's bottomline growth to far exceed that of topline this year, in tandem with the trend last two years," Kumar said.

"The consolidation will help us increase focus on manufacturing and brand building from trading. We feel that trading turnover of the company will fall below the current 45 per cent."

The branded segment turnover is likely to touch Rs 1,300 crore this year, Kumar said, thereby making it one of the top brands in edible oil, fats and soy products segment. The company expects over 65 per cent of turnover to come from the edible oil sector now.

RSIL's consolidation with six companies within the group and upcoming Rs 75-crore Haldia project has doubled the company's crushing and refinery capacity.

"The company's crushing capacity has now touched 7,150 tonnes per day from earlier 4,500 and the refinery capacity to 6,700 tonnes per day from 3,670," he said.

In case of vanaspati, the total capacity will now touch 775 tonnes per day from earlier 365 and textured soy protein capacity will rise to 380 tonnes per day from earlier 280.

Consolidation has helped increase the number of crushing plants from 3 to 7, refinery units from 4 to 10 and existing unit locations from 6 to 10, he added.

About the Rs 75-crore Haldia project, Kumar said, "the refinery unit will be basically for manufacturing rice bran oil and palm oil and is expected to be operational by the year-end."

Post-restructuring, RSIL will now focus on edible oil and foods business while the group company MP Glychem Industries will focus on dairy products.

The soy processing, edible oil and fats, and food business""General Foods Ltd, Ruchi Health Foods Ltd, Ruchi Pvt Ltd, Ruchi Credit Corporation Ltd, Param Industries Ltd and Aneja Solvex Ltd""are consolidation into RSIL. RSIL has emerged as a Rs 7,800 crore entity post-consolidation with six companies within the group, from Rs 3,922 crore last year.

Dairy products business"" Anik Industries Pvt Ltd""has been amalgamated with MPGIL.

The merger of the group companies will be effective from April 1, 2005, subject to statutory and other clearances. The board of directors of the respective companies have already approved the scheme of arrangement. RSIL has been in a capacity expansion mode in last three years, as the capacity has increased by three times.