Patanjali Foods Limited · NSE:PATANJALI
Patanjali Foods — Ruchi Soya Industries — Investor Presentation (July 2021)
44 slides from Patanjali Foods's investor presentation, Jul 21, 2021
Slide 1: Intimation letter to exchanges on investor meetings
r \ CIN : L15140MH1986PLC038536 RUCHI SOYA INDUSTRIES LIMITED Head Office : 601, Part B-2, 6th Floor, Metro Tower, Vijay Nagar, A.B. Road, Indore - 452 010 (M.P.) India Tel.: +91-731-4767009/109 / To The Manager Listing Department BSE Limited Dalal Street, Fort Mumbai - 400 001 Scrip Code- 500368 Ph
Slide 2: Ruchi Soya Industries Limited
PATANJALD, Group of Companies Ruch) Soya Industries Limited
Slide 3: Ruchi Soya – Transformation
Ruchi Soya – Transformation Bankruptcy petition Launched premium Ruchi Soya acquires admitted in terms of edible oils, honey Biscuits, Cookies and IBC and CIRP and high protein Rusk business from initiated against atta under the Patanjali on a slump sale Ruchi Soya Nutrela Brand basis(1) (for INR 60
Slide 4: Agenda
Agenda Introduction Key Segment Summary Key Strengths Financial Performance Strategy & Outlook Appendix
Slide 5: Ruchi Soya – Brief Overview (1/2)
Ruchi Soya – Brief Overview…(1/2) Business Overview • Diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well recognized brands having pan India presence • Part of the Patanjali Group, one of India’s leading FMCG, health and wellness company • Key Infr
Slide 6: Ruchi Soya – Brief Overview (2/2)
Ruchi Soya – Brief Overview…(2/2) Transformation Area / Activity Strategic Advantage to Ruchi Soya • Swami Ramdevji & Acharya Balkrishnaji have steered a leading FMCG group in less than 7 years Patanjali Parentage & 1 • Patanjali’s FMCG experience and Swami Ramdev’s brand ambassadorship will benefit
Slide 7: Consumer Facing Brands, Bakery Fat Brands
Consumer Facing Brands Bakery Fat Brands Strictly Private and Confidential 6
Slide 8: Agenda
Agenda Introduction Key Segment Summary Key Strengths Financial Performance Strategy & Outlook Appendix Strictly Private and Confidential 7
Slide 9: Edible Oil, its By-products and Derivatives: Industry Highlights
1 Edible Oil, its By-products and Derivatives: Industry Highlights Market Size Key Players Data in INR crores FY2020: INR 179,500 crores(2) 2,38,000 24,000 17.0% 1,79,500 1,34,500 23,500 60.0% 22,500 2,14,000 1,56,000 8.0% 1,12,000 1.0% 6.0% (1) 3.0% 4.0% FY 2015 FY 2020 FY 2025P Adani Wilmar Ruchi
Slide 10: Edible Oil, its By-products and Derivatives: Business Segment
1 Edible Oil, its By-products and Derivatives: Business Segment About the Business Operational & Financial Metrics • One of the largest integrated oil seed solvent extraction and edible oil 13,026 11,334 By-Products & Derivatives Data 1,966 692 1,299 refining company in India 597 in INR Vanaspati &
Slide 11: Edible Oil, its By-products and Derivatives: Oil Seed Crush Business
1 Edible Oil, its By-products and Derivatives: Oil Seed Crush Business About the Industry Key Players • Concentration of soyabean production is in the states of Madhya Crushing Capacity (As of FY20) Pradesh, Maharashtra, Rajasthan and Andhra Pradesh 11,000 • ~15,000 oilseed-crushing mills across Ind
Slide 12: Oil Palm Plantation
2 Oil Palm Plantation Market Size Key Players CY2020: 75 million MT Allocated Land Crushing Capacity Business (lakh ha) (MT/day) Integration 0.3% 11.5% Indonesia Market 4.1% Malaysia 2.5 3,000 Integrated Thailand Godrej Agrovet 0.9 N.A. Upstream 26.1% 58.0% India 3F Oil Palm 0.5 1,440 Integrated Oth
Slide 13: Edible Soya Flour and Textured Soya Protein
3 Edible Soya Flour and Textured Soya Protein (“TSP”) Market Size Key Players Data in INR crores FY2020: INR 1,000 crores(3) 3,422 2,000 1,522 37.0% 40.0% Market 1,180 1,000 650 1,900 530 1,000 (1) 5.0% FY 2015 FY 2020 FY 2025P 18.0% Branded Unbranded Ruchi Soya Adani Wilmar Emami Others About the B
Slide 14: Oleochemicals
4 Oleochemicals Market Size Key Players Tonnes per Annum VVF ~1,400 tonnes / day Adani Wilmar ~1,150 tonnes / day 2,131 Market 1,600 JOCIL ~323 tonnes / day 1,265 ~316 tonnes / day Godrej Industries ~180 tonnes / day (1) FY 2015 FY 2020 FY 2025P Fairchem ~170 tonnes / day About the Business Operatio
Slide 15: Premium Honey & Premium High Protein Atta
5 Premium Honey & Premium High Protein Atta Market Size Key Players Data in INR crores FY2020: INR 1,350 crores(2) 3,500 1,800 2,450 1,300 2.0% 9.0% Honey 1,100 Dabur Patanjali 910 10.0% 2,200 890 1,350 48.0% Apis Zandu (1) FY 2015 FY 2020 FY 2025P Others Market Branded Unbranded 31.0% Data in INR c
Slide 16: Noodles & Breakfast Cereals
6 Noodles & Breakfast Cereals Market Size Key Players Data in INR crores Player Category 12,500 Noodles Patanjali • Flakes, Oats, Muesli, Dalia 7,800 4,850 Kellogg’s • Flakes, Oats, Muesli, Granola (1) Pepsi Co • Oats, Granola, Flakes Market FY 2015 FY 2020 FY 2025P Bagrrys • Oats, Muesli, Cornflake
Slide 17: Biscuits, Cookies and Rusks
7 Biscuits, Cookies and Rusks Market Size Key Players Data in INR crores FY2020: INR 38,000 crores(3) 3,100 Britannia 2,400 62,000 Market Parle 30.0% 28.0% 40,000 2,250 58,900 25,000 ITC 37,600 22,750 2.0% Anmol 27.0% (4) (1) 4.0% Patanjali FY 2015 FY 2020 FY 2025P Branded Unbranded 11.0% Others Abo
Slide 18: Nutraceuticals and Wellness Products
8 Nutraceuticals and Wellness Products Market Size Emerging Trends in Industry Data in INR crores Transparent • The players are undertaking the task of educating 1,27,500 and Effective the consumers by sharing detailed information Education for about the products and the advantages and consumers fun
Slide 19: Nutraceuticals and Wellness Products – Peer Comparison
8 Nutraceuticals and Wellness Products – Peer Comparison General Nutrition Sports Nutrition Medical Nutrition Overall health and general Product Energy supplements and mass / Diabetic nutrition, dialysis nutrition, wellness such as multi vitamins Application muscle gainers bone health, anemics etc.
Slide 20: Agenda
Agenda Introduction Key Segment Summary Key Strengths Financial Performance Strategy & Outlook Appendix Strictly Private and Confidential 19
Slide 21: Key Strengths
Key Strengths Strong promoter pedigree of the Patanjali group Experienced leadership and revamped management team of senior industry professionals Foray into health and wellness space with launch of Nutraceuticals Products with Strong brand recognition in the Indian market Upstream and downstream in
Slide 22: Strong Promoter Pedigree of the Patanjali Group
Strong Promoter Pedigree of the Patanjali Group Improve overall Influence and Patanjali became a Strong promoter customer experience advocacy model for leading FMCG group in pedigree and encourage marketing less than 7 years brand/product loyalty Board of Directors and Sr. Management Proven track re
Slide 23: Experienced Promoters, Distinguished Board and Management Team
Experienced Promoters, Distinguished Board and Management Team Board of Directors Acharya Balkrishna Ji – Chairman & Non- Swami Ramdev Ji - Non-executive Director Executive Director • President of Divya Yog Mandir • Received the “UNSDG 10 Most Influential People • Doctor of Science (Honoris Causa) f
Slide 24: Experienced Promoters, Distinguished Board and Management Team
Experienced Promoters, Distinguished Board and Management Team Senior Management Team Ram Bharat: Managing Director Sanjeev Kumar Asthana: CEO • Associated with Patanjali Group of Companies for more than • Ex- CEO of Reliance Agri-business and Food Supply Chain, a decade • Ex-Director of NABARD Cons
Slide 25: Foray into Health and Wellness Space with Launch of Nutraceuticals
Foray into Health and Wellness Space with Launch of Nutraceuticals Spate of Lifestyle Changes in India Patanjali Nutraceutical Products Increase in • Joint branding under the “Patanjali” and “Nutrela” brand names Lifestyle Disease • 10 nutraceutical products, across sports, medical & general nutriti
Slide 26: Products with Strong Brand Recognition in the Indian Market
Products with Strong Brand Recognition in the Indian Market Increased preference Increase in Growth of the Rise in purchasing for branded food products awareness of health organized retail power among consumers, on account of and hygiene distribution network including in rural areas • Products: Bisc
Slide 27: Upstream and Downstream Integration and Oil Palm Plantation
Upstream and Downstream Integration and One of the Key Players in Oil Palm Plantation Sourcing Supply Chain • Strategically located oilseed crushing Developed Efficient Chain Strong relationship with large oil suppliers in the world and oil refining plants • Inland oilseed crushing plants are Ensure
Slide 28: Pioneer and Market Leader in Branded Soya Space
Pioneer and Market Leader in Branded Soya Space Soya Chunk Industry Nutrela Soya Chunks Key Growth Drivers • Pioneered soya chunks in 1980s through our brand "Nutrela" • Nutrela has become a household and generic name for TSP Unbranded to Unbranded to branded shift on account of • Gaining acceptance
Slide 29: Product Presence Across Mass, Value and Premium Segment
Product Presence Across Mass, Value and Premium Segment Focused on health Company will sell and wellness, Nutraceuticals under targeted at higher Patanjali and Nutrela income group brands Premium Mid Market Mass Appeal India’s highest selling palm oil brand • Continue to expand product portfolio wit
Slide 30: Effective Strategy to Procure Key Raw Materials and Manage Volatility
Effective Strategy to Procure Key Raw Materials and a Track Record Of Managing Volatility Ruchi Soya is Depend upon sourcing Ability to source raw Business FMCG company raw materials from Exposes company material at timely and Scenario involved in commodity markets in to various risks cost- effectiv
Slide 31: Strong, Established and Extensive Distribution Network
Strong, Established and Extensive Distribution Network Strong, established and extensive distribution network in India Modern Trade & E-Commerce Presence BIGBASKET WALMART MORE METRO SPENCER’S CASH & CARRY Wide Distribution Network Access to Patanjali’s Distribution Network(3)(6) Orderme App from Pa
Slide 32: Agenda
Agenda Introduction Key Segment Summary Key Strengths Financial Performance Strategy & Outlook Appendix Strictly Private and Confidential 31
Slide 33: Financial Transformation of Business
Financial Transformation of Business Key Financials Key Metrics (INR Cr) FY18A FY19A FY20A 9MFY21A Revenue from operations (net) 11,994 12,729 13,117 11,480 Revenue growth (y-o-y) 6.1% 3.1% NA Gross profit 1,354 1,327 1,545 1,552 Gross margin 11.3% 10.4% 11.8% 13.5% EBITDA(1) (5,014)(2) 222 458 748
Slide 34: Agenda
Agenda Introduction Key Segment Summary Key Strengths Financial Performance Strategy & Outlook Appendix Strictly Private and Confidential 33
Slide 35: Strategy & Outlook
Strategy & Outlook Continue to improve In-house operationalexperienced Tax efficiency through Continue Leverage Patanjali enhanced usage of various Strong Sector Coverage Advisory Brand and enhance synergies softwares and technology Expansion of our distribution Enhance the high margin Dedicated net
Slide 36: Key Business Strategies – Taking Advantage of Strong Brands
Key Business Strategies – Taking Advantage of Strong Brands 1 Existing Patanjali Brand Positioning Future Roadmap “Patanjali” is a household brand with a Increase FMCG wellness product Continue wide product portfolio and a strong portfolio, by leveraging the strong brand Leverage distribution ne
Slide 37: Key Business Strategies – Expansion Strategy
Key Business Strategies – Expansion Strategy 3 Premium Honey & Biscuits, Noodles Intend to expand Nutraceuticals Textured Soya Edible Oil Premium High and Breakfast Products (TSP) sales and Increase Protein Atta Cereals marketing efforts market share into rural markets • Capture by deeper Market Siz
Slide 38: Key Business Strategies – New Avenues And Improvement
Key Business Strategies – New Avenues And Improvement 5 6 Improve Efficiency Expand distribution network Focus is to further strengthen pan India Effective and efficient operational presence by diversifying distribution techniques: network o Adoption of best practices in line with Utilize Pata
Slide 39: Thank You
Thank You Strictly Private and Confidential
Slide 40: Agenda
Agenda Introduction Key Segment Summary Key Strengths Strategy & Outlook Financial Performance Appendix Strictly Private and Confidential 39
Slide 41: Appendix: Financial Statements – Select Balance Sheet Items
Appendix: Financial Statements (Restated) Select Balance Sheet Items As at (INR Cr) 31st Dec, 2020 31st Mar, 2020 31st Mar, 2019 31st Mar, 2018 ASSETS Non-current assets Property, plant and equipment 3,468 3,554 3,708 3,842 Capital work-in-progress 23 25 27 28 Intangible assets 1,516 1,516 1,516 1,5
Slide 42: Appendix: Financial Statements – Select Statement of Profit and Loss Items
Appendix: Financial Statements (Restated) Select Statement of Profit and Loss Items For the year ended 31 March 9 month ended 31st Dec, 2020 (INR mn) 2020 2019 2018 Income Revenue from operations 11,480 13,118 12,729 11,994 Other income 43 57 100 35 Total income 11,523 13,175 12,829 12,029 Expenses
Slide 43: Appendix: Financial Statements – Select Cash Flow Statement Items
Appendix: Financial Statements (Restated) Select Cash Flow Statement Items For the year ended 31 March 9 month ended 31st Dec, 2020 2020 2019 2018 (INR mn) Cash flows from operating activities Profit/(loss) before income tax 366 7,700 34 (6,010) Adjustments for Depreciation and amortisation expense
Slide 44: Disclaimer
Disclaimer Ruchi Soya Industries Limited (the “Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make a further public offer of its equity shares and has filed a draft red herring prospectus dated 12 June 2021 (“DRHP”) with the Securiti
Ruchi Soya Industries — Investor Presentation (July 2021) on 6ix