Mumbai, December 08, 2017 (GPN) : : Ruchi Soya today announced that it is eyeing improved capacity utilization benefits after the positive announcements in the mid-term review of the Export Policy. The increase in export incentives for Agriculture and related products along with the 2% additional incentive under MEIS scheme for soyameal will help Ruchi Soya’s oilseed extraction business with an increase in capacity utilization as well as increased output of value added products.
Mr. SatendraAgarwal, COO, Ruchi Soya Industries Ltd. said, “Crushing operations at key plants at Manglia near Indore (Madhya Pradesh); Nagpur (Maharashtra), Kota (Rajasthan) and Washim (Maharashtra) have been on the uptrend by 30% to 40% as compared to the first half of the current year. Coming on the back of our strengthening supplies to Patanjali, the increase in export incentive and increase in import duties will further improve the business environment.”
“The availability of soyabean had been boosted since farmers were selling after the government agreed to pay them the difference between the market price and MSP (minimum support prices). The soyabean prices today are more than the MSP further increasing the availability. We expect increased crushing with enhanced export viability to further augment our capacity utilisation to the extent of 20% with a consequent increase in overall margins”.
“Last month the government had almost doubled the import duty on all edible oils which will further boost domestic edible oil prices. This will work in favor of the farmers and will lead to an increase in oilseed prices thereby finally adding to an increased planting area in the upcoming soyabean season,” he added.
With 3.72 million MT capacities across 10 locations, Ruchi Soya has the largest oil seed extraction (crushing) capacity in India. In the past two years, owing to bad crop, only around 15% of the crushing capacity was being utilised. With increase in crushing operations, the capacity utilisation is expected to more than double in the current year to 30-35%.
Hailing the government’s decision, Mr. Dinesh Shahra, Managing Director and CEO, Ruchi Soya Industries Ltd. said, “We welcome the increase in the incentives that will help boost exports from the labour intensive sectors like agriculture. The increase of Rs.1,354 crore in the incentives for Agriculture and related products will given an additional lift to agri industries, which will in turn benefit all stakeholders including the farmers. It is heartening to see agro-processing as a focus area in the Government’s drive to increase exports to new and un-tapped markets, and is a big positive for the industry. We also look forward to the New Agricultural Exports Policy to give a long term direction to the industry through a stable policy regime.“
The plant at Washim in Maharashtra has crushing and de-gumming operations for soybean, while the Kota, Indore and Nagpur plants boast of end to end crushing and refining processes for soybean. The plant at Baran for crushing and refining of soybean and mustard is dedicated for deliveries under the agreements with Patanjali Ayurved Limited.
About RUCHI SOYA INDUSTRIES LIMITED
Ruchi Soya is India’s leading Agri and Food FMCG Company with a turnover of USD 3 billion. It enjoys leadership position in soy foods category in India and is one of India’s largest players in the cooking oils segment of the country. Its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star. An integrated player from farm to fork; Ruchi Soya is also among the pioneers of oil palm plantations in India. It is one of the highest exporters of value added soybean products like soy meal, textured soy protein and soy lecithin. Ruchi Soya has also diversified into renewable energy and is committed to environmental protection as part of its business strategy that reinforces its mission of becoming a truly sustainable company. ENDS