Diversified FMCG and FMHG focused company, Ruchi Soya has filed it’s draft papers with the regulator to raise upto Rs 4300 crores via a further public offering by way of a pure fresh issue. After implementation of the Patnajali Resolution Plan, RSIL is now one of the largest FMCG and integrated edible oil refining companies in the edible oil sector and has a healthy mix across the entire value chain the palm and soya segment. Additionally, in terms of palm plantation allocations, it is one of the largest player having 2,55,207 hectares of potential land under development spread across 9 states.
50% of the Issue size will be on offer to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional investors (NIIs) and 35% to Retail Individual Investors (RIIs).
Given that the Issue is proposed as a pure fresh issue, the entire Issue proceeds will be used for furthering the Company’s business by repayment of certain outstanding loans and meeting its incremental working capital requirements and other general corporate purposes.
Ruchi Soya is the pioneer of soya foods in India under the brand name of “Nutrela’, which Ruchi Soya launched in 1980s.
After acquisition of Ruchi Soya by the Patanjali group, Ruchi Soya has become one of the largest and diversified FMCG and FMHG focused companies in India with revenue from operations and other income of Rs. 11,52,347.56 lakhs, Rs. 13,17,536.56 lakhs, Rs. 12,82,925.56 lakhs and Rs. 12,02,928.03 lakhs, for the nine-months period ended December 31, 2020 and for Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively. For the same respective periods, the EBITDA of Ruchi Soya stood at Rs. 74,777.41 lakhs, Rs. 45,847.22 lakhs, Rs. 22,195.52 lakhs and Rs. (501,414.32) with an EBITDA margin as a percentage of total revenue of 6.49%, 3.48%, 1.73% and (41.68)%. According to industry sources, the turnaround in Ruchi Soyas’ financial performance from December 2019 onwards is only due to Patanjali groups acquisition.
Patanjali groups acquisition has enabled Ruchi Soya to benefit from Patanjalis pan-India distribution network, significant technical know-how in the FMCG and FMHG sectors in India and group synergies amongst the wider Patanjali Group.
According to the DRHP, as of March 31, 2021, Patanjalis distribution network consists of around 3,409 Patanjali distributors, 3,326 arogya kendras, 1,301 Patanjali chikitsalayas, 273 Patanjali mega stores and 126 Patanjali super distributors, and such, 126 Patanjali super distributors and 3,409 Patanjali distributors provide access to 5,45,849 customer touch points including approximately 47,316 pharmacies, chemists and medical stores.
Ruchi Soya also now carries out the Patanjali Biscuits, Noodles and Breakfast Cereals Business – which makes it the only Patanjali group entity which will sell the entire range of Patnajali biscuits, Noodles and Breakfast Cereals under the brand of Patanjali itself. On the back of Patanjali groups more than 14 years experience in the nutraceutical and wellness space, Ruchi Soya has launched ‘Patanjali and Nutrela’ branded nutraceuticals.
The company has launched a range of premium edible oils and blended edible oils, Nutrela High Protein Chakki Atta’, ‘Nutrela Honey’ in FY21. In the edible oils segment it already has a strong portfolio of brands such as Mahakosh, Ruchi Gold, Ruchi Star, Sunrich, Soyumm, Tulsi, Ruchi No.1, Bakefat and Avanti besides other by-products and derivatives.
As on March 31, 2020, its Textured Soya Protein (Soya Chunks) held 40% market share through India. Also as on Dec 31, 2020, it exported its products across brands to 36 countries indicating its global acceptance.
Its downstream business of oleochemicals utilizes by-products from the edible oil refineries to manufacture products like soap noodles, glycerine, distilled fatty acids as well as value based products like castor oil, soya and palm based derivatives which have a wide usage across paints, personal care, pharmaceuticals, lubricants and cosmetics.
SBI Capital Markets Ltd, Axis Capital Ltd and ICICI Securities Ltd have been appointed as the lead managers to the Issue.