Ruchi Soya Industries Ltd.

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 Ruchi Soya Industries Ltd.

TABLE OF CONTENTS

1 Ruchi Soya Industries Ltd. ..........................................................................................................................6

2 Ruchi Soya Industries Ltd. - Key Employees .............................................................................................7
3 Ruchi Soya Industries Ltd. - Key Employees Biographies .......................................................................8
4 Ruchi Soya Industries Ltd. - Major Products and Services ......................................................................9
5 Ruchi Soya Industries Ltd. - History.........................................................................................................11
6 Ruchi Soya Industries Ltd. - Company Statement...................................................................................13
7 Ruchi Soya Industries Ltd. - Locations and Subsidiaries .......................................................................14
7.1 Ruchi Soya Industries Ltd. - Head Office ................................................................................................................. 14
7.2 Ruchi Soya Industries Ltd. - Other Locations and Subsidiaries ............................................................................... 14
8 Ruchi Soya Industries Ltd. - Business Analysis......................................................................................16
8.1 Ruchi Soya Industries Ltd. - Company Overview ..................................................................................................... 16
8.2 Ruchi Soya Industries Ltd. - Business Description ................................................................................................... 16
9 Ruchi Soya Industries Ltd. - SWOT Analysis ...........................................................................................18
9.1 Ruchi Soya Industries Ltd. - SWOT Analysis - Overview ......................................................................................... 18
9.2 Ruchi Soya Industries Ltd. - Strengths ..................................................................................................................... 18
9.2.1 Strength - Dominant Market Position ................................................................................................................ 18
9.2.2 Strength - Broad Product Offerings .................................................................................................................. 18
9.2.3 Strength - Effective Distribution Network .......................................................................................................... 18
9.3 Ruchi Soya Industries Ltd. - Weaknesses ................................................................................................................ 19
9.3.1 Weakness - Deteriorating Financial Performance ............................................................................................ 19
9.4 Ruchi Soya Industries Ltd. - Opportunities ............................................................................................................... 19
9.4.1 Opportunity - Improving Economies ................................................................................................................. 19
9.4.2 Opportunity - Strategic Initiative ....................................................................................................................... 19
9.4.3 Opportunity - Increasing Demand for Oils & Fats in India ................................................................................ 19
9.5 Ruchi Soya Industries Ltd. - Threats ........................................................................................................................ 19
9.5.1 Threat - Rising Counterfeit Goods Market ........................................................................................................ 19
9.5.2 Threat - Shortage of Labor in India ................................................................................................................... 20
9.5.3 Threat - Stringent Regulations .......................................................................................................................... 20
10 Ruchi Soya Industries Ltd. - Company Financial Analysis .....................................................................21
10.1 Ruchi Soya Industries Ltd. - Five Year Snapshot: Overview of Financial and Operational Performance Indicators 21
11 Ruchi Soya Industries Ltd. - Interim ratios ..............................................................................................23
11.1.1 Ruchi Soya Industries Ltd. - Financial ratios: Capital Market Ratios ............................................................... 23
11.2 Ruchi Soya Industries Ltd. - Financial Performance and Ratio Charts .................................................................... 24
11.2.1 Ruchi Soya Industries Ltd. - Revenue and Operating margin .......................................................................... 24
11.2.2 Ruchi Soya Industries Ltd. - Asset and Liabilities............................................................................................. 25
11.2.3 Ruchi Soya Industries Ltd. - Net Debt vs. Gearing Ratio ................................................................................. 26
11.2.4 Ruchi Soya Industries Ltd. - Solvency .............................................................................................................. 27
11.3 Ruchi Soya Industries Ltd. - Competitive Benchmarking ......................................................................................... 28
11.3.1 Ruchi Soya Industries Ltd. - Market Capitalization ........................................................................................... 29
11.3.2 Ruchi Soya Industries Ltd. - Efficiency ............................................................................................................. 30
11.3.3 Ruchi Soya Industries Ltd. - Turnover: Inventory and Asset ............................................................................ 31
11.3.4 Ruchi Soya Industries Ltd. - Liquidity ............................................................................................................... 32
12 Ruchi Soya Industries Ltd. - Mergers & Acquisitions and Partnerships................................................33
12.1 Ruchi Soya Industries Ltd. - M&A and Partnerships Strategy .................................................................................. 33

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 Ruchi Soya Industries Ltd.

13 Ruchi Soya Industries Ltd. - Recent Developments ................................................................................37

14 Appendix ....................................................................................................................................................40
14.1 Methodology ............................................................................................................................................................. 40
14.2 Ruchi Soya Industries Ltd. - Ratio Definitions .......................................................................................................... 40
14.3 Disclaimer ................................................................................................................................................................. 45

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 Ruchi Soya Industries Ltd.

List of Tables

Table 1: Ruchi Soya Industries Ltd. - Key Employees .............................................................................................................. 7

Table 2: Ruchi Soya Industries Ltd. - Key Employees Biographies .......................................................................................... 8
Table 3: Ruchi Soya Industries Ltd. - Major Products and Services ......................................................................................... 9
Table 4: Ruchi Soya Industries Ltd. - History .......................................................................................................................... 11
Table 5: Ruchi Soya Industries Ltd. - Subsidiaries .................................................................................................................. 14
Table 6: Ruchi Soya Industries Ltd. - Annual ratios ................................................................................................................ 21
Table 7: Ruchi Soya Industries Ltd. - Capital Market Ratios ................................................................................................... 23

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 Ruchi Soya Industries Ltd.

List of Figures

Figure 1: Ruchi Soya Industries Ltd. - Revenue and Operating Profit .................................................................................... 24
Figure 2: Ruchi Soya Industries Ltd. - Asset and Liabilities .................................................................................................... 25
Figure 3: Ruchi Soya Industries Ltd. - Net Debt vs. Gearing Ratio ......................................................................................... 26
Figure 4: Ruchi Soya Industries Ltd. - Solvency ..................................................................................................................... 27
Figure 5: Ruchi Soya Industries Ltd. - Market Capitalization .................................................................................................. 29
Figure 6: Ruchi Soya Industries Ltd. - Efficiency..................................................................................................................... 30
Figure 7: Ruchi Soya Industries Ltd. - Turnover: Inventory and Asset .................................................................................... 31
Figure 8: Ruchi Soya Industries Ltd. - Liquidity ....................................................................................................................... 32

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 Ruchi Soya Industries Ltd.

Operating Performance

The company reported revenue of US$5,169 million

1 Ruchi Soya Industries Ltd. during the fiscal year 2016 (2016). The company's
revenue declined at a compounded rate of 1.92%
during 2012–2016, with an annual decline of 4.05%
Fast Facts over 2015. In 2016, the company recorded an
operating margin of -1.43%, as against 1.47% in 2015.
Headquarters Address 301 Mahakosh House,Indore,,452001,India

Revenue and Margins

Telephone +91 731 2513281

Fax N/A

Website www.ruchisoya.com

RUCHISOYA,National Stock Exchange of

Ticker Symbol , Exchange Name
India

Number of Employees 3,860

Fiscal Year End March

Revenue (US$ million) 5,169

SWOT Analysis

Strengths Weaknesses

Broad Product Offerings Deteriorating Financial Performance

Dominant Market Position

Effective Distribution Network

Opportunities Threats

Improving Economies Rising Counterfeit Goods Market

Increasing Demand for Oils & Fats in

Shortage of Labor in India
India

Strategic Initiative Stringent Regulations

Share Data

Share price (US$) as on 22 Jul 2016 0.39

EPS (US$) -0.48

Market Capitalization (US$ million) 131

Enterprise Value (US$ million) 938

Shares outstanding (million) 334

6
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 Ruchi Soya Industries Ltd.

2 Ruchi Soya Industries Ltd. - Key Employees

Table 1: Ruchi Soya Industries Ltd. - Key Employees

Name Job Title Board Level Since Age

Dinesh Shahra Managing Director, Director Executive Board

Vijay Kumar Jain Director - Commercial Executive Board 57

Anil Singhal General Manager - Corporate Accounts Senior Management

R. L. Gupta Secretary Senior Management

Kailash Shahra Chairman Non Executive Board 1986

N. Murugan Director Non Executive Board 68

Navin Khandelwal Director Non Executive Board 41

Prabhu Dayal Dwivedi Director Non Executive Board 73

Sajeve Deora Director Non Executive Board 55

Source: Canadean

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 Ruchi Soya Industries Ltd.

3 Ruchi Soya Industries Ltd. - Key Employees Biographies

Table 2: Ruchi Soya Industries Ltd. - Key Employees Biographies

Employee Details Biography

Kailash Shahra has been the non-executive Chairman of the Ruchi

Kailash Shahra Soya Industries Ltd since January 7, 1986. He had been a Director of
Bank of India as well as New Bank of India. Currently, he is also a
Job Title : Chairman
Director of Anik Industries Limited., Indian Steel & Agro Industries Ltd.,
Since : 1986 National Steel & Agro Industries Limited, National Board of Trade
Limited, and Ruchi Strips & Alloys Limited.

Source: Canadean

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 Ruchi Soya Industries Ltd.

4 Ruchi Soya Industries Ltd. - Major Products and Services

Ruchi Soya Industries Ltd is involved in the oil-seed extraction and refining of oil for edible use. The key products
offered by the company include the following:

Table 3: Ruchi Soya Industries Ltd. - Major Products and Services

Products:

Seed Extractions

Textured Soya Protein

Soya Flour

Vanaspati

Crude Oils

Bakery Fats

Table Spread

Refined Oils

Fruit Juice

Soya Milk

Coffee

Gram

Wheat

Maize

Rice

Corn

Marine Products

Tuar

Peas

Seeds

Barley

Soap

Coptton Bales

Toiletry Preperations

Fresh Fruit Bunch

Cotton Seed Oil Cake

Seedling

Plant And Equipment

Brands:

Nutrela

Ruchi Gold

Nutrela

Soyumm

Ruchi No 1

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 Ruchi Soya Industries Ltd.

Table 3: Ruchi Soya Industries Ltd. - Major Products and Services

Mahakosh

Sunrich

Nutri Gold
Source: Canadean

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 Ruchi Soya Industries Ltd.

5 Ruchi Soya Industries Ltd. - History

Table 4: Ruchi Soya Industries Ltd. - History

Year Event type Description

The company entered into a joint venture partnership with Kagome Co., Ltd. and Mitsui & Co.
2016 Contracts/Agreements
Ltd., for processed tomato products.

The company entered into a joint venture partnership with Adani Wilmar Ltd, to create FMCG
2016 Contracts/Agreements
company.

The company entered into a memorandum of understanding with the Government of

2015 Contracts/Agreements Maharashtra to extend its services for soya and tomato farmers with an investment of INR
500 crore.

The company signed a memorandum of understanding with the Government of Rajasthan, to

2015 Contracts/Agreements develop Agri-produce Procurement Centres, Warehousing for Agri Produce, Seed Research
& Development and Renewable Power Generation in Rajasthan.

The company announced a joint venture with D J Hendrick International Inc, a soya bean
2014 Contracts/Agreements research corporation and KMDI International, trader and marketer of soya beans to
revolutionize the soya bean production in India.

2014 Plans/Strategy The company announced plans to enter into ready-to-cook segment.

The company was named in the top 250 consumer companies in the world according to the
2014 Corporate Awards 7th annual Global Powers of Consumer Products 2014 report issued by Deloitte Touche
Tohmatsu Limited.

2014 Corporate Changes/Expansions The company entered into South Indian sunflower oil market with the launch of Sunrich brand.

The company announced joint venture with Kagome Co. Ltd, a tomato product company and
2013 Contracts/Agreements Mitsui & Co. Ltd , an investment and services company to revolutionize the Indian tomato
market of worth 17 million tons.

The company secured an award as the top Indian company under the Food and Agro
2013 Corporate Awards
Processing sector at the Dun & Bradstreet Corporate Awards ceremony.

The company announced a joint venture with J-Oil Mills Inc., an edible oil major and Toyota
2013 Contracts/Agreements Tsusho Corporation, a global trading company to enter into the business of production and
marketing of high quality, functional edible oils.

The company signed MoU with Thermax Limited, energy and environment solutions to set up
2012 Contracts/Agreements 1 MW biomass gasification plant for large-scale commercialization of biomass power in the
country.

The company entered into limited liability partnership agreement with Indian Oil Corporation
2010 Contracts/Agreements to establish Indian Oil Ruchi Biofuels.

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 Ruchi Soya Industries Ltd.

Table 4: Ruchi Soya Industries Ltd. - History

Year Event type Description

The company was awarded with the Dun & Bradstreet – Rolta Corporate Awards 2008, in the
2009 Corporate Awards
food and agro processing sector.

2008 Contracts/Agreements The company entered into technology licensed agreement with the US based, NutriJoy.

2008 New Products/Services The company expanded its product portfolio by launching N’rich in the beverage segment.

Ruchi Soya won the Dun & Bradstreet – Rolta Corporate Awards 2008 in the Food & Agro
2008 Corporate Awards
Processing sector.

The company merged its sister companies which include Aneja Solvex, General Foods, Ruchi
2007 Acquisitions/Mergers/Takeovers Credit Corporation, Ruchi Health Foods, Param, Ruchi Private and Soya businesses of MP
Glychem into it.

The company made a strategic tie-up with Pantaloon Retail, to develop premium oils which
2006 Contracts/Agreements would then be sold through both the Pantaloon network (Food Bazaar) as well as through
Ruchi Soya’s distribution set up.

The company commenced the commercial production of processed Soya food and refined
2006 Corporate Changes/Expansions
rice bran oil at its green field plant at Haldia.

2006 Acquisitions/Mergers/Takeovers The company took over the closed unit in Shujalpur, Ujjain.

2006 Corporate Changes/Expansions The company entered into the soap business.

2005 Corporate Changes/Expansions The company expanded its business into steel.

The company launched ready-to-cook Nutrela flavours, Korma Masala, Spicy Curry and
2005 New Products/Services
Chinese Manchurian products in the market.

2005 Corporate Changes/Expansions The company brought its edible oil products under the Nutrela brand.

1972 Incorporation/Establishment Ruchi Soya Industries Ltd was established in 1972.

Source: Canadean

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 Ruchi Soya Industries Ltd.

6 Ruchi Soya Industries Ltd. - Company Statement

A statement by Mr. Kailash Shahra, the Chairman of Ruchi Soya Industries Ltd is given below. The statement has been
taken from the company’s 2014 annual report.

Dear Friends,
For a country like India where more than half of its population is under the age of 30, nutrition plays a critical role. At Ruchi
Soya, we are committed to cater to the nutrition needs of this young and developing India.

Over the last decade, the Indian consumer has embraced varied food habits and nutritional content. Increasing per capita
incomes and globalization has also enhanced India’s focus on healthy and quality food, especially towards protein rich diet.

Besides, increasing consumption of edible oil has led to rising palm oil consumption in India due to price competitiveness.
The country, however, lacks sufficient domestic oil production and relies heavily on imports to meet the growing oil demand.
Edible oil comprises 63% of agricultural imports. This offers a promising opportunity for all of us in India.

Protein deficiency in food has been a critical issue for India’s growing population. We believe sustainable transformation
requires higher yields from available land resources. It also calls for better seed quality, productivity and support to ensure
better income and thriving farming communities.

POTENTIAL OF SOYA: My father, late Shri Mahadeo Shahra was among the first to realize the potential of the protein rich
soya crop in the early 1960s. He created awareness about the golden opportunity of soya cultivation among the farmers in
central India. This eventually led to Madhya Pradesh becoming the soya bowl of the country and India gaining importance as
a leading soya producer in the world.

We have evolved since then, expanding across business verticals and are fortunate to be a multiple-product, multiple-brand
and multi-location player. We diversified our portfolio to cater to the larger sections of the community to ensure a wider
reach. We began with Nutrela and moved on to a varied range of other brands and value added soya products.

However, our commitment to quality and health has remained steadfast over the years. It touches every aspect of our
operation and business strategy.

PARTNERING FOR GROWTH: We are embarking on new partnerships with key organizations that will help us realise our
quest for growth in a responsible and beneficial manner.

The year 2013-14 saw us entering into three joint ventures with partners of international repute. Our new ventures have
been undertaken for research, collaboration and knowledge transfer. We aim to improve the quality of soya beans in India,
add new and improved functional edible oils to our product portfolio, and create a presence in the processed tomato food
market.

Moreover, these partnerships are also targeted at fulfilling our vision to enable farmer communities to increase their revenue
realisation and also to improve India’s agro-commodity independence and reduce our foreign exchange outgo. Our
collaborations are not restricted to business only, but extend to society as well. We have partnered with farmers in central
India on a pilot basis to educate them on the best crop management practices for soya bean varieties tailored for different
agro-climatic zones in India. Our partnerships with the communities helped us create a positive impact through improved
nutrition, better education and women’s empowerment initiatives.

WAY FORWARD: Going forward, we will try to sustain, grow our market share and formulate our growth strategy through
pivotal partnerships with our stakeholders.We will also strive to improve our bottom line and generate stronger returns and
continually strive to reduce overheads wherever possible.

We believe this can only be achieved through the vital efforts of our employees who deliver best-in-class performance. I
would like to thank the Ruchi Soya team for their hard work and dedication throughout the year. I would also like to thank our
shareholders, bankers and financial institutions for their unwavering trust in us.

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 Ruchi Soya Industries Ltd.

7 Ruchi Soya Industries Ltd. - Locations and Subsidiaries

7.1 Ruchi Soya Industries Ltd. - Head Office

Ruchi Soya Industries Ltd.

301 Mahakosh House
Indore
Zip: 452001
India
Tel: + 91 731 2513281

7.2 Ruchi Soya Industries Ltd. - Other Locations and Subsidiaries

Table 5: Ruchi Soya Industries Ltd. - Subsidiaries

Gemini Edibles & Fats India Pvt. Ltd.

8-2-334/70 & 71,

Road No.5

Banjara Hills
Ruchi Worldwide Ltd.
Hyderabad
India
India

Tel: + 91 40 6735 7857

Fax: +91 40 23550522

Zip: 500 034

Ghi Energy Pvt. Ltd

601,Mahakosh House,7/5

South Tukoganj,7/5
Ruchi Ethiopia Holdings Limited
South Tukoganj
United Arab Emirates
Indore

India

Zip: 452001

Mrig Trading Private Limited RSIL Beneficiary Trust

India India

Ruchi Worldwide Limited

601, Mahakosh House

South Tukoganj
Ruchi Industries Pte. Limited
Indore
Singapore
India

Tel: + 91 731 2518162

Fax: +91 731 2527250

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 Ruchi Soya Industries Ltd.

Table 5: Ruchi Soya Industries Ltd. - Subsidiaries

Ruchi Agri Plantations (Cambodia) Pte. Limited

No. 216, Preah Norodom, 1st Floor, Room 77

Icon Building

Phnom Penh

Cambodia

Tel: + 855 23 997621

Zip: 12301

Source: Canadean

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 Ruchi Soya Industries Ltd.

8 Ruchi Soya Industries Ltd. - Business Analysis

8.1 Ruchi Soya Industries Ltd. - Company Overview

Ruchi Soya Industries Ltd. (Ruchi Soya) is a manufacturer and marketer of soya products and edible oil. It is one of the
largest integrated oilseed solvent extraction and edible oil refining companies in India. It produces food products from soya,
oil meals and other value-added products from downstream processing of commodities. The company offers a wide range of
seed extractions, textured soya protein, soya flour, vanaspati, crude oils, bakery fats, table spread, refined oils, fruit juice
and soya milk. In addition, it also provides products such as coffee, gram, wheat, maize, rice, corn, marine products, tuar,
peas, seeds, barley, soap, cotton bales, toiletry preperations, fresh fruit bunch, cotton seed oil cake, seedling and plant and
equipment. The company offers its products under the brands Nutrela, Soyumm, Mahakosh, Sunrich, Ruchi Gold, Ruchi No.
1 and Nutri Gold. The company offers its products through an extensive distribution network. It operates principally in India
and exports to over 60 countries worldwide. Ruchi is headquartered in Indore, Madhya Pradesh, India.

As part of the company’s expansion strategy, it tends to expand its presence in agri-product business, which enables the
company to enter into complementary areas to sustain growing relationships with domestic farming community and
international customers.

8.2 Ruchi Soya Industries Ltd. - Business Description

Ruchi is a subsidiary of Ruchi group, which is involved in the oil-seed extraction and refining of edible oil. It also produces
oil meal, food products from soya and other value-added products from downstream processing of commodities.

The company operates its business under six reportable segments: Extraction, Vanaspati, Oils, Food products, Wind power
generation and Others.

The Extractions segment offers all types of seed extractions. The company also offers Soyabean meal, such as de-oiled
extractions or cake, which is obtained through solvent extractions process. In FY2013, the Extractions segment generated
revenue of INR78,770 million, accounting for 24.9% of the company’s total revenue.

The Vanaspati segment includes vanaspati and bakery fats and table spread. Key brands of this segment include Ruchi No.
1 and Nutri Gold. The fats offered include interesterified vegetable fat under the Neptune brand and margarine, full fat, and
cream under the CakeMo, CookieMo, MoCreme, PuffMo and MoSno Cream brands, respectively. In FY2013, the Vanaspati
segment generated revenue of INR9,154 million, accounting for 3% of the company’s total revenue.

The Oils segment provides crude oils and refined oils to its consumers. Ruchi Soya’s edible, refined oils include soyabean,
cotton seed, groundnut, sunflower, palmolein, mustard, and rice bran varieties. These oils are marketed under the
Mahakosh, Sunrich, Ruchi Gold and Nutrela brands. In FY2013, the Oils segment generated revenue of INR183,788 million,
accounting for 58% of the company’s total revenue.

The Food products segment of the company offers soya flour, textured soya protein, fruit juice, and soya milk. These
products are marketed under the Nutrela and N’rich brands. In FY2013, the Food products segment generated revenue of
INR5126 million, accounting for 1.60 % of the company’s total revenue.

In the Wind power generation segment, the company is involved in electricity generation from wind mills. The company’s
wind mill facilities have 85.3 MW of wind power generation capacity. It has 11 wind power generating locations across India.
In FY2013, the Wind power generation segment generated revenue of INR628 million, accounting for 0.2% of the company’s
total revenue.

The Others segment provides gram, wheat, rice, maize, corn, seeds, coffee, marine products, tuar, peas, barley, soap, fresh
fruit bunch, seedling, plant and equipment, cotton bales, cotton seed oilcake and toiletry preparation. One of the major
brands in this segment is Ruchi No. 1. In FY2013, the Others segment generated revenue of INR37277 million, accounting
for 12% of the company’s total revenue.

In FY2013, apart from the above segments the company generated a unallocable revenue of INR1,001 million, accounting
for 0.3% of the company’s total revenue.

In terms of geographic regions, the company classifies its business into Domestic and Export markets. In FY2013, the
Domestic market accounted for 80% of the company’s total revenue, while the Exports segment represented 20%.

Ruchi is also the supplier of nutritional ingredients and food solutions. It offers a wide range of value added soya products.
The company supplies edible de-fatted soya flour, full fatted edible flour, soya lecithin, soya granules, soya grits, soya
distillate, soya flakes and soya chunks. Its exports to over 60 countries which includes Japan, Vietnam, Indonesia, Thailand,
Philippines, South Korea, Taiwan, the Middle East, Bangladesh, Pakistan, Nepal and Sri Lanka. The company also exports
feeds, including soybean meal and rapeseed meal to Vietnam, Japan, Indonesia, Malaysia, South Korea, Europe and the
Middle East.

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 Ruchi Soya Industries Ltd.

Ruchi has over 200,000 hectares of palm oil plantations with procurement rights and 11 wind power generating locations.
The company operates 21 manufacturing plants and 139 depots. It distributes its products through 6,000 distributors and
600,000 retail outlets.

The company carries out research and development (R&D) to minimize energy consumption, development of new products
and improvement in the quality of existing products.

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 Ruchi Soya Industries Ltd.

9 Ruchi Soya Industries Ltd. - SWOT Analysis

9.1 Ruchi Soya Industries Ltd. - SWOT Analysis - Overview

Ruchi Soya Industries Ltd. (Ruchi Soya) is an oil seed extracting company, principally involved in the oil-seed extraction and
refining of oil for edible use. It also produces oil meal, food products from soya and other value-added products. Dominant
market position , broad product offerings, and effective distribution network are the company’s key strengths, whereas
deteriorating financial performance remain as the major concern area Going forward rising counterfeit goods market,
shortage of labor in India and stringent regulations may affect the company's operations. However, improving economies,
strategic initiatives and increasing demand for oils & fats in India may provide ample growth opportunities for the company.

9.2 Ruchi Soya Industries Ltd. - Strengths

9.2.1 Strength - Dominant Market Position

Ruchi occupies a dominat position in the Indian market as one of the fastest growing consumer packaged goods company.
The company offers a vast portfolio of food products, food ingredients and edible oil, and is also involved in power
generation and feed business. It specializes in soy and related products. In May 2013, Ruchi won Dun & Bradstreet Award,
as being one of the leading companies in the Food and Agro-Processing Business sector. During 2014 the company was
featured in the Global Powers of Consumer Products report, as among the top 250 consumer products company worldwide.
It was also ranked amongst the 50 fastest growing company under this sector. In September 2013, the company secured
the status of being India’s largest processor in Indian edible oil industry, by the Solvent Extractors Association. Furthermore,
in September 2013, the company was honored as the India’s largest exporter of soya meal during the Globoil. Ruchi is
recognized one among the top five50 fastest growing consumer companies globally and leads among the two companies in
India. It is considered one of the leading FMCG Company of India, Indian FMCG companies, operating in cooking oil, soya
foods, bakery fats and vanaspati sectors. Such a dominant position in the market and awards and recognitions strengthen
the company’s brand image both in domestic and international markets.

9.2.2 Strength - Broad Product Offerings

The broad product offerings will help the company reach huge customers. Ruchi is involved in the manufacturing of high
quality edible oils, vanaspati, bakery fats, and soya foods. The company operates through six reportable segments: Seed
extraction, Vanaspati, Oils, Food Products, wind power generation and others. Under seed extraction segment, it is involved
in extraction of all types of seeds. It offers vanaspati and specified fats under Ruchi No 1 brand; Oils segment provides
crude oils and refined oils under Ruchi Gold and Nutrela Soyumm brands; Food Products segment offers textured soya
protein, soya flour, fruit juice, and soya milk; Others segment provide coffee, gram, wheat, maize, rice, marine products,
tuar, peas, seeds, barley, fruit juices, fresh fruits bunches, seedlings and soap. It is also the supplier of nutritional ingredients
and food solutions. Its export to over 60 countries such as Japan, Vietnam, Indonesia, Thailand, Philippines, South Korea,
Taiwan, the Middle East, Bangladesh, Pakistan, Nepal and Sri Lanka. The company supplies edible de-fatted soya flour, full
fatted edible flour, soya lecithin, soya granules, soya grits, soya distillate, soya flakes and soya chunks. It also exports feeds,
including soybean meal and rapeseed meal, to Vietnam, Japan, Indonesia, Malaysia, South Korea, Europe and the Middle
East. In FY2014, the company generated 61.7% of its revenue from the oil segment, followed by the food products (2.1%),
extractions (23.6%), vanaspati (3.2%) and others (9.4%). Broad product portfolio enables the company in protecting itself
against demand fluctuations in certain industry segments.

9.2.3 Strength - Effective Distribution Network

Effective distribution network helps the company in generating operational efficiencies. The company is involved in oil seed
extraction and producing oil meal, food products from soya and other value-added products. Ruchi operates through
700,000 retail stores with 139 company depots and over 6,000 distributors. The company exports its products to various
countries. It operates in India and also exports its products to Japan, Vietnam, Indonesia, Thailand, Philippines, South
Korea, Taiwan, the Middle East, Bangladesh, Pakistan, Nepal and Sri Lanka, among others. Strong distribution network
helps the company in gaining operational synergies as well as efficiently serve its customers.

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 Ruchi Soya Industries Ltd.

9.3 Ruchi Soya Industries Ltd. - Weaknesses

9.3.1 Weakness - Deteriorating Financial Performance

Deteriorating financial performance lacks the company from gaining the shareholders confidence. In FY2014, the revenue of
the company decreased 4.5%, from INR298574 million in FY2013 to INR284994 million in FY2014. The net income and
operating income of the company also declined during the year. The net income of the company decreased 99%, from INR
2732 million in FY2013 to INR1.69 million in FY2014. Furthermore, the operating income of the company declined by 7%,
from INR8434 million in FY2013 to INR7822 million during the current year. This deterioration in the financial performance of
the company was primarily due to the deviation in import duty structure requiring higher landed cost for crude palm products
for the domestic refining industry and the consequent low profitability and lower capacity utilization. Furthermore, the
deprived emergence of soya seeds in the market resulted in the lack of commercial equality for crushing and increase in
foreign currency hedging cost.

9.4 Ruchi Soya Industries Ltd. - Opportunities

9.4.1 Opportunity - Improving Economies

The company may benefit from the growth in global economies. According to the IMF, global economy is expected grow at
3.3% in 2014 and is expected to reach 3.8% in 2015, with advanced economies expected to grow by 1.8% and 2.3% and
emerging market and developing economies by 4.4% and 5% in 2014 and 2015, respectively. IMF expects the US economy
to grow by 2.2% in 2014 and 3.1% in 2015 from 2.2% in 2013 and is expected to be driven by final domestic demand and
reduction in the fiscal drag as a result of budget agreement. The EU countries are expected to recover from recession and
grow by 0.8% in 2014 and 1.3% in 2015 due to higher exports. Whereas, India is expected to grow from 5% in 2013 to 5.6%
in 2014 and 6.4% in 2015, China is projected to grow at 7.4% in 2014 and 7.1 in 2015. and South Africa from 1.9% in 2013
to 2.3% in 2015. Better Drinks Company being a major provider of non- alcoholic beverages is likely to benefit from such
increase in GDP rates as it may boost company’s revenues in future.

9.4.2 Opportunity - Strategic Initiative

Strategic initiatives help the company to seek and analyze the growth prospectus periodically. During the FY2013-14 the
company entered into three joint ventures with internationally reputed partners. As part of the strategic initiatives taken by
the company during FY2013-14, Ruchi entered into a joint venture with Kagome Co. Ltd and Mitsui & Co. Ltd to
revolutionize worth 17 million tons Indian tomato market, the company entered another joint venture with J-Oil Mills Inc., and
Toyota Tsusho Corporation to enter into the business of production and marketing of high quality and functional edible oils.
Furthermore, the company,announced a joint venture with D J Hendrick International Inc, and KMDI International to
revolutionize the soya bean production in India. Through these partnerships Ruchi tends to expand further in the global
market. Strategic initiatives help the company in achieving a broader organizational transformation.

9.4.3 Opportunity - Increasing Demand for Oils & Fats in India

The company may benefit from the increasing demand for oils & fats in the country. According to an in-house research, the
oils & fats market accounted for 30.23% of total retail food sales in India in 2013. The overall market value of oils & fats grew
at a CAGR of 8.62% from INR318,746.4 million in 2008 to INR481,977.7 million in 2013. Furthermore, the market is
expected to grow at a CAGR of 9.52% to reach INR759,344.7 million in 2018. Oil was the largest category, accounting for
88.8% of total value sales in the oils & fats market in 2013. The company offers a wide range of edible oils, including
soyabean, groundnut, cottonseed, mustard, palmolein, sunflower and ricebrand varieties. It also exports its oils to many
countries in Asia. Thus, increasing global demand for oils & fats may increase demand for the company’s products.

9.5 Ruchi Soya Industries Ltd. - Threats

9.5.1 Threat - Rising Counterfeit Goods Market

The company’s business may be affected as a result of the huge influx of counterfeit products. Penetration of counterfeit
merchandise may lower the company’s sales and adversely affects its profit margins. Moreover, as customers mistakenly
purchase counterfeit products bearing fake labels, the low quality of the products affects consumer confidence and also,
damages the brand image of the genuine company. In February 2011, International Chamber of Commerce (ICC) reported
that the global economic and social impacts of counterfeiting and piracy is expected to reach US$1,700 billion by 2015 and
places approximately 3 million legitimate jobs at risk every year. International trade in fakes is expected to increase to
US$960 billion by 2015. Through low price offerings, the imitated goods are affecting the sales of the branded products.

19
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 Ruchi Soya Industries Ltd.

9.5.2 Threat - Shortage of Labor in India

The company may face the problem of shortage of skilled personnel in India. Federation of Indian Chambers of Commerce
and Industry (FICCI) Survey on Labour / Skill Shortage for Industry, 90.00% of the participating companies have indicated
that they are not able to find sufficient number of workers required for their operations. Furthermore, 89.00% of the
respondents said that they are unable to meet the potential demand for their products fully due to labor shortage. Ruchi has
19 manufacturing plants, ten wind mills, and 110 depots. It may be disrupted due to shortage of labor in the long run.

9.5.3 Threat - Stringent Regulations

Being a producer and marketer of food products, the company is subjected to various regulations by government agencies,
with respect to production processes, product quality, packaging, labeling, storage and distribution In India. The Food Safety
and Standards Authority of India (FSSAI) has been established under Food Safety and Standards Act, 2006. FSSAI
develops science based standards for food and regulates the production, storage, distribution, sale and import to ensure
availability of safe food for human consumption. The Food Safety and Standards Act, 2006 consolidates eight food
regulatory laws including The Prevention of Food Adulteration Act, 1954; The Fruit Products Order, 1955; The Meat Food
Products Order, 1973; The Vegetable Oil Products (Control) Order, 1947; The Edible Oils Packaging (Regulation) Order,
1998; The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967; The Milk and Milk Products Order,
1992; and Essential Commodities Act, 1955 relating to food. The Department of Animal Husbandry, Dairying and Fisheries
at the Ministry of Agriculture oversees the regulatory compliance to The Food Safety and Standards Act, 2006. The
company produces and markets a range of milk and milk related products in India. The act has laid down certain regulatory
requirements in case of milk and milk related products in areas including quality control, packing, certification, marking and
labeling standards. According to the milk and milk products Order, 1992, every company has to obtain a certificate of
registration to operate its business in the country. The Essential Commodities Act, 1955 further comprises laws such as
Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities)
Rules, 1977; Export (Quality Control and Inspection) Act, 1963; and Environment Protection Act, 1986. The company has to
incur significant cost to conform to the regulations and any non conformance may result in huge fines and penalties which
may be derogatory to the company’s image.

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 Ruchi Soya Industries Ltd.

10 Ruchi Soya Industries Ltd. - Company Financial Analysis

10.1 Ruchi Soya Industries Ltd. - Five Year Snapshot: Overview of Financial and Operational
Performance Indicators

The company reported revenue of US$5,169 million during the fiscal year 2016 (2016). The company's revenue declined at
a compounded rate of 1.92% during 2012–2016, with an annual decline of 4.05% over 2015. During 2016, operating margin
of the company was -1.43% in comparison with operating margin of 1.47% in 2015. In 2016, the company recorded a net
profit margin of -3.10% compared to a net profit margin of 0.25% in 2015.

Table 6: Ruchi Soya Industries Ltd. - Annual ratios

Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Equity Ratios

EPS (Earnings per Share) INR -28.12 2.39 8.18 8.18

Dividend per Share INR 0.16 0.16 0.32 0.32

Dividend Cover Absolute 14.94 0.01 25.57 25.57

Book Value per Share INR 37.05 67.54 70.87 72.53 66.56

Cash Value per Share INR 10.29 17.31 4.5 11.37 54.47
Profitability Ratios

Gross Margin % 7.35 6.42 7.82 7.37 7.37

Operating Margin % -1.43 1.47 2.74 2.82 2.82

Net Profit Margin % -3.1 0.25 0.92 0.92

Profit Markup % 7.93 6.86 8.48 7.96 7.96

PBT Margin (Profit Before Tax) % -3.46 0.32 0.14 1.21 1.21

Return on Equity % -75.91 3.55 0.01 11.28 12.31

Return on Capital Employed % -21.15 13.05 19.99 21.76 24.67

Return on Assets % -6.48 0.54 1.62 1.87

Return on Fixed Assets % -15.67 16.17 25.1 26.83 28.32

Return on Working Capital % 67.55 98.2 115.33 191.28

Growth Ratios

Sales Growth % -4.05 10.75 -4.55 64.2

Operating Income Growth % -193.65 -40.84 -7.26 110.68

EBITDA Growth % -439.34 21.38 -58.9 -3.86 13.22

Net Income Growth % -1274.09 47364.41 -99.94 21.35

EPS Growth % -2522.29 7321.12 -99.81 25.63

Working Capital Growth % -204.67 -14.01 8.93 65.85 -20.56

Cost Ratios

Operating Costs (% of Sales) % 101.43 98.53 97.26 97.18 97.18

Administration Costs (% of Sales) % 0.75 3.96 4.01 3.53 3.53

Liquidity Ratios

Current Ratio Absolute 0.94 1.06 1.08 1.06 1.04

Quick Ratio Absolute 0.74 0.78 0.71 0.78 0.67

Cash Ratio Absolute 0.03 0.05 0.1 0.33 0.29

Leverage Ratios

Debt to Equity Ratio Absolute 4.14 1.68 1.63 3.05 2.8

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 Ruchi Soya Industries Ltd.

Table 6: Ruchi Soya Industries Ltd. - Annual ratios

Key Ratios Unit/Currency 2016 2015 2014 2013 2012

Net Debt to Equity Absolute 3.86 1.42 1.62 3.24 1.98

Debt to Capital Ratio Absolute 2.5 1.07 0.99 1.9 1.82

Efficiency Ratios

Asset Turnover Absolute 2.09 2.12 2.02 1.77 2.04

Fixed Asset Turnover Absolute 12.39 12.29 10.02 10.4 10.93

Inventory Turnover Absolute 11.28 9.35 7.02 7.76 6.65

Current Asset Turnover Absolute 2.58 2.63 2.6 2.18 2.57

Capital Employed Turnover Absolute 24.47 13.99 12.04 12.33 13.46

Working Capital Turnover Absolute 46.08 35.78 40.83 67.71

Revenue per Employee INR 78454852

Net Income per Employee INR -2434098

Capex to Sales % 0.5 0.63 1.09 1.66

Source: Canadean

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 Ruchi Soya Industries Ltd.

11 Ruchi Soya Industries Ltd. - Interim ratios

11.1.1 Ruchi Soya Industries Ltd. - Financial ratios: Capital Market Ratios

Table 7: Ruchi Soya Industries Ltd. - Capital Market Ratios

Key Ratios Value

P/E (Price/Earnings) Ratio 0

EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 0

Enterprise Value/Sales 0.18

Enterprise Value/Operating Profit 0

Enterprise Value/Total Assets 0.38

Dividend Yield 0
Note: Above ratios are based on share price as of 22-Jul-2016. The above ratios are absolute numbers.
Source: Canadean

23
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 Ruchi Soya Industries Ltd.

11.2 Ruchi Soya Industries Ltd. - Financial Performance and Ratio Charts
11.2.1 Ruchi Soya Industries Ltd. - Revenue and Operating margin

The consolidated group revenue of the company for 2016 stood at US$5,169 million, which corresponds to a decline of 4.05%
over the previous year. The operating margin of the company was -1.43% in 2016, a decrease of 290.00 basis points over the
previous year.

Figure 1: Ruchi Soya Industries Ltd. - Revenue and Operating Profit

Source: Canadean

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 Ruchi Soya Industries Ltd.

11.2.2 Ruchi Soya Industries Ltd. - Asset and Liabilities

The company's assets declined by 2.41% over the previous year to US$2,475 million in 2016. The company's liabilities grew
5.24% over the previous year to US$2,264 million in 2016. The company's asset to liability ratio reduced from 1.18 in 2015 to 1.09
in 2016.

Figure 2: Ruchi Soya Industries Ltd. - Asset and Liabilities

Source: Canadean

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 Ruchi Soya Industries Ltd.

11.2.3 Ruchi Soya Industries Ltd. - Net Debt vs. Gearing Ratio

The company recorded higher net debt of US$816 million at the end of fiscal year 2016 when compared to the previous year's net
debt of US$548 million. The company's gearing ratio for the year 2016 was 0.36, which was higher when compared to the
previous year's gearing ratio of 0.32. The gearing ratio remained higher in 2016 due to higher debt funding activities over equity.

Figure 3: Ruchi Soya Industries Ltd. - Net Debt vs. Gearing Ratio

Source: Canadean

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 Ruchi Soya Industries Ltd.

11.2.4 Ruchi Soya Industries Ltd. - Solvency

In 2016, the company's current ratio declined to 0.94 from the previous year's current ratio of 1.06. The company’s quick ratio
declined to 0.74 in 2016 from the previous year's quick ratio of 0.78. In 2016, the company’s debt ratio increased to 0.35 from the
previous year's debt ratio of 0.26.

Figure 4: Ruchi Soya Industries Ltd. - Solvency

Source: Canadean

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 Ruchi Soya Industries Ltd.

11.3 Ruchi Soya Industries Ltd. - Competitive Benchmarking

The following companies are the major competitors of Ruchi Soya Industries Ltd.:

Agro Tech Foods Limited (Ticker: ATFL)

Ajanta Soya Limited (Ticker: 519216)

Ambika Solvex Ltd.

Amrit Banaspati Co. Ltd. (Ticker: 531728)

Amrit Corp. Limited (Ticker: 507525)

JVL Agro Industries Limited (Ticker: JVLAGRO)

Swastik Traders

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 Ruchi Soya Industries Ltd.

For competitive benchmarking, latest financial results are considered. Following are the key performance indicators against
which the companies have been benchmarked:

11.3.1 Ruchi Soya Industries Ltd. - Market Capitalization

As of 22-Jul-2016, the company recorded a market capitalization of US$143 million, higher than its close competitors Amrit Corp.
Limited (Ticker: 507525) and Ajanta Soya Limited (Ticker: 519216) which recorded market capitalizations of US$21 million and
US$6 million respectively. The company recorded earnings per share of US$-0.53 in 2016, which has led to a price/earnings ratio
(P/E ratio) of 8.60 ratio. This was lower than the P/E ratios of its peers, Agro Tech Foods Limited (Ticker: ATFL) and Amrit Corp.
Limited (Ticker: 507525), which recorded P/E ratios of 54.51 and 10.51 respectively.

Figure 5: Ruchi Soya Industries Ltd. - Market Capitalization

Source: Canadean
Note: Company names are represented by ticker symbols
Bubble size represents Market Capitalization US$ Million
For those data points with negative values, bubbles will not be displayed.
Where the market cap is disproportionately smaller, a bubble may not be displayed.

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 Ruchi Soya Industries Ltd.

11.3.2 Ruchi Soya Industries Ltd. - Efficiency

The company recorded an operating margin of -1.43% in 2016. This was lower than the operating margin of its peers, Agro Tech
Foods Limited (Ticker: ATFL) and Ajanta Soya Limited (Ticker: 519216), which recorded the margins of 5.21% and 0.86%
respectively. In terms of revenues, the company is 38.72 times of Agro Tech Foods Limited (Ticker: ATFL), 719.88 times of Am rit
Corp. Limited (Ticker: 507525), and 52.29 times of Ajanta Soya Limited (Ticker: 519216).

Figure 6: Ruchi Soya Industries Ltd. - Efficiency

Source: Canadean
Note: Company names are represented by ticker symbols

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 Ruchi Soya Industries Ltd.

11.3.3 Ruchi Soya Industries Ltd. - Turnover: Inventory and Asset

In 2016, the company reported an inventory turnover of 11.28, higher than that of its peers: during the same period, Agro Tech
Foods Limited (Ticker: ATFL) and Amrit Corp. Limited (Ticker: 507525), recorded inventory turnovers of 3.55 and 4.74
respectively. The company’s asset turnover in 2016 was 2.09, higher than the asset turnovers of its peers: during the same period,
Agro Tech Foods Limited (Ticker: ATFL) and Amrit Corp. Limited (Ticker: 507525) recorded asset turnovers of 1.54 and 0.21
respectively.

Figure 7: Ruchi Soya Industries Ltd. - Turnover: Inventory and Asset

Source: Canadean
Note: Company names are represented by ticker symbols

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 Ruchi Soya Industries Ltd.

11.3.4 Ruchi Soya Industries Ltd. - Liquidity

The company reported a current ratio of 0.94 in 2016, lower than that of its peers: during the same period, Agro Tech Foods
Limited (Ticker: ATFL), Amrit Corp. Limited (Ticker: 507525) and Ajanta Soya Limited (Ticker: 519216) recorded current ratios of
1.38, 1.18 and 1.24 respectively. In 2016, the company's debt to equity ratio was 4.14, higher than that of its peers: during the
same period, Agro Tech Foods Limited (Ticker: ATFL), Amrit Corp. Limited (Ticker: 507525) and Ajanta Soya Limited (Ticker:
519216) recorded debt to equity ratios of 0.28, 0.20 and 0.51 respectively.

Figure 8: Ruchi Soya Industries Ltd. - Liquidity

Source: Canadean
Note: Company names are represented by ticker symbols

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 Ruchi Soya Industries Ltd.

12 Ruchi Soya Industries Ltd. - Mergers & Acquisitions and

Partnerships

12.1 Ruchi Soya Industries Ltd. - M&A and Partnerships Strategy

Ruchi Soya to form joint venture with Kagome and MITSUI

Deal Type Partnership Deal Sub Type Joint Venture

Deal Status Announced Announced Date 2013-04-29

Deal in Brief
Ruchi Soya Industries Limited along with Kagome Co., Ltd. and MITSUI & CO., LTD. has agreed to form a joint venture named
Ruchi Kagome in India. Both Kagome and MITSUI are based in Japan.

Ruchi Kagome will produce tomato puree, sauces, ketchup and other products.

Ruchi Soya produces cooking oils, soya foods, bakery fats and vanaspati in India, while MITSUI is a general trading company
involved in the water supply, real estate, food and retail, consumer services, information technology, transportation logistics and
financial markets businesses. Kagome produces condiments, food and beverage products.

Ruchi Soya will hold a 40% stake in Ruchi Kagome and the remaining 60% will be held by a special purpose company (SPC)
created by Kagome and Mitsui which own 66.7% and 33.3% stakes respectively in the SPC.
Participant Company Information

Company Name Mitsui & Co., Ltd. Involvement Type Target

Company Overview
Mitsui & Co., Ltd. (Mitsui) is a business conglomerate. The company sells, distributes, purchases, markets and supplies wide
variety of products in business areas including: iron and steel; non-ferrous metals; machinery; electronics; chemicals; energy-
related commodities; foods & retail, lifestyle and consumer service. It also participates in the other activities such as arranging
finance for customers and suppliers in connection with its trading activities, organizing and coordinating international industrial
projects, participating in financing and investing arrangements, assisting in the procurement of raw materials and equipment,
providing new technologies and processes for manufacturing and coordinating transportation and marketing of finished goods.
The company operates through its subsidiaries and affiliates in the Americas, EMEA, and Asia-Pacific. Mitsui is headquartered in
Tokyo, Japan.
Company Name Kagome Co., Ltd. Involvement Type Target

Company Overview
Kagome Co., Ltd. (Kagome) is a food and beverage products manufacturing company based in Japan. The company primarily
produces and sells a range of condiments including tomato sauces and soups, hot foods, tomato juices, still drinks, fruit and
vegetable juices, and other food products. The company is also involved in the cultivation, purchase and sales of seed and
seedlings, lactic acid bacteria and fruits and vegetables. It is also into other businesses including logistics and warehousing, real
estate leasing, parking lot operation and sales of food ingredients. The company’s research institute, branch offices, and
manufacturing plants are located across Japan. The company has operations in Japan, Portugal, Turkey, the US, Italy, Thailand,
Taiwan, India, China and Australia. Kagome is headquartered in Nagoya-shi, Japan

Ruchi Soya and J-OIL MILLS form joint venture with Toyota Tsusho
Deal Type Partnership Deal Sub Type Joint Venture

Deal Status Completed Announced Date 2013-06-05

Deal in Brief
Ruchi Soya Industries Ltd. and J-OIL MILLS, INC. have formed a joint venture (JV) with Toyota Tsusho Corporation, a general
trading company, to produce and market functional edible oils. Both J-OIL and Toyota Tsusho are based in Japan.

Ruchi Soya is a cooking oils, soya foods, bakery fats and vanaspati producer based in India, while J-OIL is an edible oils, olive
oils, margarine and fat products, dietary and nutritional supplements producer.

Ruchi Soya will hold a 51% stake in the JV, J-Oil will hold a 26% and the remaining 23% stake of the JV will be held by Toyota

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 Ruchi Soya Industries Ltd.

Tsusho.

As a part of the transaction, Ruchi Soya has approved the sale and transfer of its soya processing business situated at Shujalpur,
in Madhya Pradesh, India to the proposed JV.

Pursuant to the transaction, Ruchi Soya will provide the raw materials and necessary marketing and distribution assistance to the
JV. J-Oil will provide technical assistance and Toyota Tsusho will provide management assistance for internal control and access
to international markets through its network.
Participant Company Information

Company Name J-Oil Mills, Inc. Involvement Type Target

Company Overview
J-Oil Mills, Inc. (J-Oil Mills) is a manufacturer and supplier of food products. The company offers oil cake, oil and fat, processed
food, feed and fertilizers. Its products portfolio includes starch, vegetable oil, margarine, rapeseed meal, dietary supplements,
soybean feed, mixed feed, soy protein, synthetic resin adhesive, lectin-sugar chain products, and others. The company provides
warehousing, port transportation, automobile cargo transportation, lorry transport handling, automobile rental and real estate
services. It operates through its manufacturing facilities located in Chiba, Yokohama, Asaba, Shizuoka, Kobe and Wakamatsu,
Japan. J-Oil Mills is headquartered in Chuo-Ku, Japan.
Company Name Toyota Tsusho Corporation Involvement Type Target

Company Overview
Toyota Tsusho Corporation (Toyota Tsusho), a subsidiary of Toyota Group, is a general trading and project management
company. It trades steel, aluminum, machinery, electronics, energy, chemicals, and other consumer products. The company also
provides passenger cars, buses, motorcycles, trucks, used vehicles, electronic devices, commercial facilities, and housing
services among others. Toyota Tsusho serves a wide customer base including machine manufacturers and vendors, textile
industries, semiconductor companies, chemical and plastic firms and food, beverage and agriculture industry players. The
company along with its subsidiaries and affiliates operates in China, Korea, Philippines, Singapore, Indonesia, Australia, New
Zealand, Iran, Belgium, South Africa, Venezuela, Brazil, the UK, and the US, among others. Toyota Tsusho is headquartered in
Nakamura-ku, Japan.

Adani Wilmar to Form Joint Venture with Ruchi Soya Industries

Deal Type Partnership Deal Sub Type Joint Venture

Deal Status Announced Announced Date 2016-05-25

Deal in Brief
Adani Wilmar Limited., a provider of edible oil, vanaspati, and specialty fats, has entered into a joint venture (JV) agreement with
Ruchi Soya Industries Ltd., to combine their respective procurement, marketing, distribution and sales businesses. Both
companies involved in the transaction are based in India.

Ruchi Soya is a manufacturer and seller of edible oils, soya food, premium table spread, vanaspati and bakery fats.

As part of the agreement, a new company will be formed with both Adani Wilmar and Ruchi Soya contributing their procurement,
marketing, sales and distribution businesses together with their respective stables of brands.

The JV will have the exclusive right to originate, market and distribute finished products from the following manufacturing
businesses of Adani Wilmar and Ruchi Soya in India.
Under the terms of the JV, Adani Wilmar, jointly hold an equity stake of 66.66% in the JV, and Ruchi Soya will hold 33.34% stake
in the JV.

The transaction is subject to due diligence, definitive binding documentation, applicable regulatory and other approvals and certain
other terms and conditions.

Participant Company Information

Company Name Adani Wilmar Ltd. Involvement Type Target

Company Overview
Adani Wilmar Limited (Adani Wilmar) is an oil products producer and marketer based in India. The company offers oil products
such as edible oil, vanaspati, soya bean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, coconut oil and
vegetable ghee among others. It markets its products through its brands, Fortune, King’s, Ivory, Bullet, Fryola, Avsar, Jubilee and
Raag. Adani Wilmar distributes its products to households and institutional buyers. It exports its products to the Middle East
countries, South-East Asian countries, Africa, Ukraine and Ghana. The company operates through its packing facilities located in

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 Ruchi Soya Industries Ltd.

Gujarat, Maharashtra, Rajasthan, Karnataka, Maharashtra, Madhya Pradesh and Kerala. Adani Wilmar is headquartered in
Ahmedabad, Gujarat, India.

Board of Directors of Ruchi Soya Industries approve formation of joint venture with DJ Hendrick International and
KMDI International
Deal Type Partnership Deal Sub Type Joint Venture

Deal Status Announced Announced Date 2014-02-22

Deal in Brief
Ruchi Soya Industries Ltd., an Indian company involved in making cooking oil and palm plantations, has got the approval from the
Board of Directors to form a joint venture with DJ Hendrick International Inc. and KMDI International Ltd., to develop and
commercialize specialty soyabean seeds.

KMDI International is a Japanese company involved in importing soybeans, importing and selling soy protein for meat and fish
products, while DJ Hendrick International is a Canadian soyabeen research company.

Ruchi Soya Industries will hold a 55% stake, DJ Hendrick International will hold a 35% stake and the remaining 10% stake will be
held by KMDI International respectively in the joint venture.

As part of the joint venture, Ruchi Soya will provide the infrastructure, research and development (R&D Center), while DJ
Hendrick International will provide germ plasm, technology and breeders. KMDI International will help in marketing and distribution
once the variety is developed and is ready for commercial production.

Deal History:
On February 22, 2014, Ruchi Soya Industries entered into a research & development (R&D) joint venture with DJ Hendrick
International and KMDI International.
Participant Company Information

Company Name DJ Hendrick International Inc. Involvement Type Target

Company Overview

DJ Hendrick International Inc. is a Canadian soyabean research company.

Company Name KMDI International Ltd. Involvement Type Target

Company Overview
KMDI International Ltd. is a Japanese company involved in importing soybeans, importing and selling soy protein for meat and fish
products.

Ruchi Soya may acquire stake in K S Oils

Deal Type Acquisition Deal Sub Type Minority Acquisition

Deal Status Dead Rumor Announced Date

Deal in Brief
Ruchi Soya Industries Ltd., an oil seed extracting company engaged in oil-seed extraction and refining of oil, is in talks to acquire
a stake in K S Oils Limited, an edible oil manufacturer. Both the companies are based in India.

The promoters of KS Oils are reportedly looking to offload their 35.01% stake.

DSP Merrill Lynch Limited is acting as merchant banker and PricewaterhouseCoopers International Limited is acting as consultant
for the stake sale.
Participant Company Information

Company Name K S Oils Limited Involvement Type Target

Company Overview
K S Oils Limited (K S Oils) manufactures and distributes integrated edible oil and related products. Its products include mustard
oil, soybean oil and palm oil. The company markets its product under brand names, Kalash, Double Sher, K S Gold, and among
others. It offers by-products, such as de-oiled mustard cake and de-oiled soy meal, which used as cattle feed and farm input

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 Ruchi Soya Industries Ltd.

supplement. The company operates in agri-commodity trading, export and import of edible oils, and oil palm plantation cultivation
activities. It has its manufacturing facilities in Rajasthan, Madhya Pradesh, West Bengal, and New Delhi. The company operates
through its branches in Maharashtra, West Bengal, Gujarat, Assam, and Madhya Pradesh. K S Oils is headquartered in Morena,
Madhya Pradesh, India.

Pantaloon Retail partners with Ruchi Soya

Deal Type Partnership Deal Sub Type Other

Deal Status Completed Announced Date 2006-07-24

Deal in Brief
Pantaloon Retail (India) Limited, an India based retail company, formed a partnership with Ruchi Soya Industries Ltd., an Indian
based manufacturer of edible oils. Under the partnership, both companies would work together to develop premium oils which
would then be sold through both the Pantaloon network (Food Bazaar) as well as through Ruchi Soya’s distribution set up. Ruchi
Soya will also manufacture edible oils under Food Bazaar’s private label, Fresh and Pure.

Participant Company Information

Company Name Future Retail Limited Involvement Type Target

Company Overview
Future Retail Limited (Future Retail), formerly Pantaloon Retail (India) Limited, is a multi format retailer which carries out retail
stores operations. The company offers food, fashion, home and electronics, telecom and IT, general merchandise, leisure and
entertainment, wellness and beauty and books & music products. The company operates its stores under banners such as Big
Bazaar, and Food Bazaar, Central, Home Town and eZone. It also operates other formats such as Brand Factory, Planet Sports,
aLL and others. The company has supplier relationships with several small, medium and large entrepreneurs and manufacturers.
The company carries out most of its operations across India. Future Retail is headquartered in Mumbai, Maharashtra, India.

Ruchi Soya Industries Sells Stake in Ruchi Kagome Foods

Deal Type Acquisition Deal Sub Type Majority Acquisition

Deal Status Completed Announced Date 2016-05-22

Deal in Brief
Ruchi Soya Industries Ltd., has sold its entire stake in joint venture (JV) company Ruchi Kagome Foods India Pvt. Ltd., a producer
of tomato puree, sauces and ketchup, for a consideration of INR630 million (USD9.32 million). Both companies involved in the
transaction are based in India.

Ruchi Soya is a manufacturer and seller of edible oils, soya food, premium table spread, vanaspati and bakery fats.

Ruchi Kagome Foods is a JV company between Ruchi Soya Industries and Kagome Co., Ltd.

Following the transaction, Ruchi Soya entered into termination and share purchase agreement with Kagome and others on May
20, 2016, resulting into termination of JV arrangement with the parties thereto.

In addition, Ruchi Soya also partnered with J-Oil Mills Inc and Toyota Tsusho Corporation to launch innovative products like
functional healthy cooking oils in India.
Participant Company Information

Company Name Undisclosed Company Involvement Type Acquirer

Company Overview

Ruchi Kagome Foods India Pvt.

Company Name Involvement Type Target
Ltd.
Company Overview
Ruchi Kagome is an producer of tomato puree, sauces and ketchup.

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 Ruchi Soya Industries Ltd.

13 Ruchi Soya Industries Ltd. - Recent Developments

Ruchi Soya obtains approval to set up facilities in Karnataka, India

Date : 13 Jun 2016

Ruchi Soya Industries (Ruchi Soya) has secured an approval from India's Karnataka Government to establish several new facilities in the food
and agri-business segment in Dakshina Kannada.

Ruchi Soya Industries (Ruchi Soya) has secured an approval from India's Karnataka Government to establish several new facilities in the food
and agri-business segment in Dakshina Kannada.

The company secured the clearance from State Level Single Window Clearance Committee (SLSWCC). Last November, Ruchi Soya signed a
MoU with the state of Karnataka to build these facilities.

The firm will create an integrated value chain, which is expected to benefit farmers. Ruchi Soya will set up multi-location palm fruit and kernel
processing units to produce edible oil, palm kernel cake, palm kernel oil and solar power.

"This proposed new integrated platform is expected to have significant value for both the Indian farmer, in terms of efficient handling of produce
and sales realisation."
The company will also install a nursery to produce high-yielding varieties of plant species and create awareness about oil palm cultivation.

Once the new facilities become operational, more than 17,000 people, including farmers, contract farming and agricultural workers will find
employment.

Ruchi Soya Industries founder and managing director Dinesh Shahra said: "This proposed new integrated platform is expected to have
significant value for both the Indian farmer, in terms of efficient handling of produce and sales realisation, as well as for the Indian consumer,
who will stand to gain from an increased range of high-quality finished products."

The firm currently has procurement rights in palm-planted areas of more than 200,000ha, including 4,000ha in Karnataka.

Ruchi Soya is a leading cooking oil and soy food maker in India and marketer. Its brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and
Ruchi Gold.

Last month, India-based Adani Wilmar announced plans to create a joint venture (JV) with Ruchi Soya to cater to the growing domestic demand
for food.

Adani Wilmar will hold a 66.66% stake in the JV, while Ruchi Soya will hold the remainder. The JV will procure, market, sell and distribute
products such as grains, oil seeds and soya foods.

Adani Wilmar to form joint venture with Ruchi Soya to merge oils and grains business

Date : 26 May 2016

Adani Wilmar is planning to form joint venture with Ruchi Soya to merge their vegetable oil, soya foods, and grains businesses.

Ruchi Soya and Adani Wilmar will contribute their procurement, marketing, sales and distribution businesses together to the new joint venture
company.

The joint venture is expected to lead to improved efficiencies and cost rationalistion across logistics, supply chain management, manpower, and
distribution by capitalizing on the existing networks of each company.

Both the companies will offer manufacturing support for the joint venture company.

Adani and Wilmar are likely to hold an equity stake of 66.66% in the new joint venture company, while Ruchi Soya will hold 33.34%. Adani
Wilmar is a joint venture between Adani Enterprises and Wilmar International.

The combined entity's plaftorm is expected to benefit Indian farmers in terms of handling produce and realization of sales. Besides, customers
are likely to gain from increased range of products offered by the joint venture.

The deal is subject to due diligence, definitive binding document, regulatory and other customary approvals and certain other terms and
conditions.

The joint venture will have exclusive rights to develop, sell and distribute finished products from the manufacturing businesses of Adani Wilmar
and Ruchi Soya in India.

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 Ruchi Soya Industries Ltd.

The products include oil seeds and vegetable oil, oil seeds crushing/extractions/refining; soya foods and its by-products; oleochemicals;
biodiesel; grains and castor oil and its derivatives.

Adani Group chairman Gautam Adani said: "The proposed partnership between Adani Wilmar and Ruchi will have a positive impact on the
overall agricultural landscape of India.

"Our current partnership with Wilmar has been successful due to a solid combination of Wilmar's strategic outlook and experience in the
international food business, coupled with our domestic operational expertise. We look forward to take the next leap forward with the Ruchi family
through this new joint venture."

Ruchi Soya bestowed Globoil Diamond Awards for being ‘No. 1 Importer of Edible Oil in 2015’, ‘No.1 Exporter of Soybean Meals’ and
‘No.1 Palm Oil Brand’

Date : 30 Sep 2015

Ruchi Soya Industries Limited (Ruchi Soya), India's number one edible oil and soya foods company, has been conferred the Globoil Diamond
Award for being 'No. 1 Importer of Edible Oil 2015'.

Ruchi Soya was acknowledged for its leadership in the Indian edible oil industry at Globoil India Awards 2015. The visionary Founder and
Managing Director of Ruchi Soya Mr. Dinesh Shahra received the award on behalf of the company at a glittering ceremony held last evening in
Mumbai. Ruchi Soya was also bestowed Globoil Diamond Awards for being 'No. 1 Exporter of Oil Meals 2015' and for being the No.1
manufacturer of branded palm oil.

On receiving the recognitions, Mr. Dinesh Shahra - Founder and Managing Director, Ruchi Soya Industries Limited stated, "It is indeed a
privilege to receive this award. I accept it on behalf of the entire Ruchi Soya family, who have made this possible. This award acknowledges our
company's efforts and contribution towards the industry and sector at large. Going forward Ruchi soya will expand its indigenous procurements.
Ruchi has pioneered Palm oil cultivation in India and has already activated production from 50 thousand hectares across India" At Globoil India
2015, Mr. Shahra made a fervent plea for the industry and government to 'Act' in close coordination to ensure India's strategic food security. No
country aspiring to emerge as a world power can afford to be dependent on imports to meet its food requirements.

Mr. Shahra complimented the Indian Government for levying additional duty differential between crude and refined palm oils. He made an avid
plea for increasing the duty differential between refined and crude oil imports to 20% from the present 7.5%. He proposed to divert the revenue
collected from increased duty for promotion of oilseed cultivation within the country. This would avert the unabated flow of refined palm oil into
India and provide a level playing field to domestic industry.

On receiving the award for being the No.1 Brand in the refined Palm Oil Category, Mr. Satendra Aggarwal, COO, Ruchi Soya mentioned, "We
can see a clear shift of consumer preferences from loose oil to packed oil. Ruchi Gold is clearly a market leader with a dominance over 35% of
the market share. Last year we appointed Madhuri Dixit as our brand ambassador for our brand Mahakosh. We have plans to harness the
opportunity in branded packed oil segment to its fullest. We are targeting a two folds increase in branded oil sales within three years."

Nutrela Ruchi Soya Industries Limited ties up with PFNDAI to enhance awareness on the benefits of Soya in Karnataka & Maharashtra

Date : 28 Sep 2015

India’s leading FMCG Company Ruchi Soya Industries Limited has tied up with PFNDAI to advise it on Soya brand Nutrela.

Dr Pai is Executive Director of Protein Foods & Nutrition Development Association of India and he will also propagate the benefits of Soya to
other nutritionists.

Nutrela and PFNDAI will be implementing a nutritionist outreach programme in the states of Karnataka and Maharashtra. The two sides will be
jointly reaching out to more than 200 nutritionists each in Mumbai and Bangalore alone in the next two months.

The initiative comes at a time when health has emerged as a growing concern in India. India is home to a majority of the heart patients in the
World. A major cause of this is a sedentary and stressful lifestyle. This has prompted many Indians to move away from a traditional Indian
breakfast towards a healthy breakfast. This is where soya food can play a huge role with their strong protein content.

The Nutrela brand has been in existence for over two decades. It straddles the entire spectrum of Soya offerings including chunks, mini chunks
and granules.

"We are extremely pleased to be associated with an eminent organisation like PFNDAI and a nutritionist and scientist like Dr Pai. His knowledge
will help us in creating healthy products for a healthier India. Like us, he too shares an abiding commitment towards good health," said Mr. Nilesh
Mazumdar - CEO, Consumer Brand Division of Ruchi Soya Industries Limited

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 Ruchi Soya Industries Ltd.

Ruchi Soya: Performance for the year ended on March 31, 2015

Date : 29 May 2015

Ruchi Soya Industries Limited (Ruchi Soya) has announced its audited financial results for the year (FY 2014-15) ended March 31, 2015.

As compared to the corresponding previous year, Net sales during the FY 2014-15 grew by 16%, from Rs.24,381 crore to Rs.28,309 crore.
Earnings before Interest and Finance Cost, Tax, Depreciation & Amortisation (EBITDA) stood at Rs.626.03 crore as against Rs.733.75 crore
recorded in the previous year. After considering extraordinary item of Rs.64.92 crore (previous year Rs.11.05 Crore), Profit before tax increased
by 62.16% from Rs.49.72 crore to Rs.80.62 crore. Profit after Tax improved by 354% from Rs.13.42 crore to Rs.60.93 crore.

The capacity utilization of port based refinery has gone up from 13.00 lac MT to 20.10 lac MT, with an impressive increase of 54.58%.Despite
steep fall in commodity prices during the year, Branded sales have grown from Rs. 6,965 crore to Rs. 8,357 crore, registering healthy growth of
19.98%.

Commenting on the performance, Founder and Managing Director, Mr. Dinesh Shahra said, "The low crop size of soy bean during the year
accompanied by a good crop production in the international markets have resulted in lack of commercial viability for processing and
consequently impacted the capacity utilization of soya processing industry in India. Also, steep fall in commodity prices in short periods with
intensified competition, have adversely impacted the market sentiments and operating profitability during the year. However, the domestic
demand of soymeal has partly neutralized the impact on account of international disparity of Indian soymeal exports. The low edible oil prices
have led to increase in domestic consumption and imports to bridge the growing demand- supply gap."

Due to expectation of improvement in soybean prices, weather factors and market conditions, we anticipate better sowing and production of
soybean and therefore higher utilization of soya processing facilities in the current year. Our consistent performance on branded sales has
strengthened our belief to relentlessly focus on serving our customers with value added products and thereby expanding our branded sales in
the future.

With the expected stabilization of commodity prices in the near future and better utilization of production capacities, more particularly the port
based refineries; we expect the operating performance to improve significantly in the current year. We believe that, sustained focus on higher
utilization of capacities and branded sales, with focuson cost rationalization measures, will entail better operating profitability in the times to
come."

Source: Canadean

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 Ruchi Soya Industries Ltd.

14 Appendix

14.1 Methodology

Canadean company reports are based on a core set of research techniques which ensure the best possible level of quality
and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases

Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end

14.2 Ruchi Soya Industries Ltd. - Ratio Definitions

Capital Market Ratios Capital Market Ratios measure investor response to owning a company's stock and also the cost
of issuing stock.

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income
earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors
are paying more for each unit of income, so the stock is more expensive compared to one with
Price/Earnings Ratio (P/E) lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. Price per share is as of previous business
close, and EPS is from latest annual report.

Formula: Price per Share / Earnings per Share

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with,
or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that
Enterprise Value/Earnings
it is unaffected by a company's capital structure. It compares the value of a business, free of
before Interest, Tax,
debt, to earnings before interest. Price per share is as of previous business close, and shares
Depreciation & Amortization
outstanding last reported. Other items are from latest annual report.
(EV/EBITDA)

Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy
the company's sales. EV/Sales is seen as more accurate than Price/Sales because market
capitalization does not take into account the amount of debt a company has, which needs to be
Enterprise Value/Sales
paid back at some point. Price per share is as of previous business close, and shares
outstanding last reported. Other items are from latest annual report.

Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales

Enterprise Value/Operating Profit measures the company's enterprise value to the operating
Enterprise Value/Operating profit. Price per share is as of previous business close, and shares outstanding last reported.
Profit Other items are from latest annual report.

Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income

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 Ruchi Soya Industries Ltd.

Enterprise Value/Total Assets measures the company's enterprise value to the total assets.
Enterprise Value/Total Price per share is as of previous business close, and shares outstanding last reported. Other
Assets items are from latest annual report.

Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets

Dividend Yield shows how much a company pays out in dividends each year relative to its share
price. In the absence of any capital gains, the dividend yield is the return on investment for a
Dividend Yield
stock.

Formula: Annual Dividend per Share / Price per Share

Equity Ratios These ratios are based on per share value.

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding
Earnings per Share (EPS) share of common stock. EPS serves as an indicator of a company's profitability.

Formula: Net Income / Weighted Average Shares

Dividend is the distribution of a portion of a company's earnings, decided by the board of

Dividend per Share
directors, to a class of its shareholders.

Dividend cover is the ratio of company's earnings (net income) over the dividend paid to
Dividend Cover shareholders.

Formula: Earnings per share / Dividend per share

Book Value per Share measure used by owners of common shares in a firm to determine the
Book Value per Share level of safety associated with each individual share after all debts are paid accordingly.

Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares

Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance
Cash Value per Share sheet) that is determined by dividing cash & equivalents by the total shares outstanding.

Formula: Cash & equivalents / Outstanding Shares

Profitability Ratios are used to assess a company's ability to generate earnings, based on
Profitability Ratios revenues generated or resources used. For most of these ratios, having a higher value relative
to a competitor's ratio or the same ratio from a previous period is indicative that the company is
doing well.

Gross margin is the amount of contribution to the business enterprise, after paying for direct-
Gross Margin fixed and direct variable unit costs.

Formula: {(Revenue-Cost of revenue) / Revenue}*100

Operating Margin is a ratio used to measure a company's pricing strategy and operating
efficiency.
Operating Margin

Formula: (Operating Income / Revenues) *100

Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that
shows how much of each dollar earned by the company is translated into profits.
Net Profit Margin

Formula: (Net Profit / Revenues) *100

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 Ruchi Soya Industries Ltd.

Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Profit Markup

Formula: Gross Income / Cost of Revenue

Profit Before Interest & Tax Margin shows the profitability of the company before interest
PBIT Margin (Profit Before
expense & taxation.
Interest & Tax)

Formula: {(Net Profit + Interest + Tax) / Revenue} *100

PBT Margin (Profit Before Profit Before Tax Margin measures the pre-tax income over revenues.
Tax)
Formula: {Income Before Tax / Revenues} *100

Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of
Return on Equity the common stock owners.

Formula: (Net Income / Shareholders Equity)*100

Return on Capital Employed is a ratio that indicates the efficiency and profitability of a
company's capital investments. ROCE should always be higher than the rate at which the
Return on Capital Employed
company borrows; otherwise any increase in borrowing will reduce shareholders' earnings.

Formula: EBIT / (Total Assets – Current Liabilities)*100

Return on Assets is an indicator of how profitable a company is relative to its total assets, the
Return on Assets ratio measures how efficient management is at using its assets to generate earnings.

Formula: (Net Income / Total Assets)*100

Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
Return on Fixed Assets equipment).

Formula: (Net Income / Fixed Assets) *100

Return on Working Capital measures the company's profitability to its working capital.
Return on Working Capital

Formula: (Net Income / Working Capital) *100

Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.

Operating costs as percentage of total revenues measures the operating costs that a company
Operating costs (% of Sales) incurs compared to the revenues.

Formula: (Operating Expenses / Revenues) *100

Administration costs as percentage of total revenue measures the selling, general and
Administration costs (% of
administrative expenses that a company incurs compared to the revenues.
Sales)

Formula: (Administrative Expenses / Revenues) *100

Interest costs as percentage of total revenues measures the interest expense that a company
Interest costs (% of Sales) incurs compared to the revenues.

Formula: (Interest Expenses / Revenues) *100

Leverage ratios are used to calculate the financial leverage of a company to get an idea of the
Leverage Ratios company's methods of financing or to measure its ability to meet financial obligations. There are
several different ratios, but the main factors looked at include debt, equity, assets and interest
expenses.

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Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also
depends on the industry in which the company operates. For example, capital-intensive
Debt to Equity Ratio
industries tend to have a higher debt equity ratio.

Formula: Total Liabilities / Shareholders Equity

Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its
operations, along with some insight into its financial strength. The higher the debt-to-capital ratio,
the more debt the company has compared to its equity. This indicates to investors whether a
Debt to Capital Ratio company is more prone to using debt financing or equity financing. A company with high debt-to-
capital ratios, compared to a general or industry average, may show weak financial strength
because the cost of these debts may weigh on the company and increase its default risk.

Formula: {Total Debt / (Total assets - Current Liabilities)}

Interest Coverage Ratio is used to determine how easily a company can pay interest on
Interest Coverage Ratio outstanding debt, calculated as earnings before interest & tax by interest expense.

Formula: EBIT / Interest Expense

Liquidity ratios are used to determine a company's ability to pay off its short-terms debts
obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the
company possesses to cover short-term debts. A company's ability to turn short-term assets into
Liquidity Ratios
cash to cover debts is of the utmost importance when creditors are seeking payment.
Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine
whether a company will be able to continue as a going concern.

Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an
idea of the company's ability to pay back its short-term liabilities (debt and payables) with its
short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable
Current Ratio
the company is of paying its obligations. A ratio under 1 suggests that the company would be
unable to pay off its obligations if they came due at that point.

Formula: Current Assets / Current Liabilities

Quick ratio measures a company's ability to meet its short-term obligations with its most liquid
assets.
Quick Ratio

Formula: (Current Assets - Inventories) / Current Liabilities

Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only
looks at the most liquid short-term assets of the company, which are those that can be most
easily used to pay off current obligations. It also ignores inventory and receivables, as there are
Cash Ratio no assurances that these two accounts can be converted to cash in a timely matter to meet
current liabilities.

Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Efficiency ratios measure a company's effectiveness in various areas of its operations,

Efficiency Ratios
essentially looking at maximizing its use of resources.

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate
sales. A higher ratio indicates the business has less money tied up in fixed assets for each
currency unit of sales revenue. A declining ratio may indicate that the business is over-invested
Fixed Asset Turnover
in plant, equipment, or other fixed assets.

Formula: Net Sales / Fixed Assets

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 Ruchi Soya Industries Ltd.

Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales
revenue to the company. A higher asset turnover ratio shows that the company has been more
Asset Turnover
effective in using its assets to generate revenues.

Formula: Net Sales / Total Assets

Current Asset Turnover indicates how efficiently the business uses its current assets to generate
Current Asset Turnover sales.

Formula: Net Sales / Current Assets

Inventory Turnover ratio shows how many times a company's inventory is sold and replaced
over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio
Inventory Turnover
implies either strong sales or ineffective buying.

Formula: Cost of Goods Sold / Inventory

Working Capital Turnover is a measurement to compare the depletion of working capital to the
generation of sales. This provides some useful information as to how effectively a company is
Working Capital Turnover
using its working capital to generate sales.

Formula: Net Sales / Working Capital

Capital employed turnover ratio measures the efficiency of a company's use of its equity in
Capital Employed Turnover generating sales revenue to the company.

Formula: Net Sales / Shareholders Equity

Capex to Sales ratio measures the company's expenditure (investments) on fixed and related
Capex to sales assets' effectiveness when compared to the sales generated.

Formula: (Capital Expenditure / Sales) *100

Net income per Employee looks at a company's net income in relation to the number of
employees they have. Ideally, a company wants a higher profit per employee possible, as it
Net income per Employee
denotes higher productivity.

Formula: Net Income / No. of Employees

Revenue per Employee measures the average revenue generated per employee of a company.
This ratio is most useful when compared against other companies in the same industry.
Revenue per Employee
Generally, a company seeks the highest revenue per employee.

Formula: Revenue / No. of Employees

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is
losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is
Efficiency Ratio
good for the bank and its shareholders.

Formula: Non-interest expense / Total Interest Income

Source : Canadean

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 Ruchi Soya Industries Ltd.

14.3 Disclaimer

All Rights Reserved

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean.

The data and analysis within this report is driven by Canadean from its own primary and secondary research of public and
proprietary sources and does not necessarily represent the views of the company profiled.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from
both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Canadean can
accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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