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RUCHI SOYA INDUSTRIES LTD.

Article · June 2015

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Brahmadev Panda
Symbiosis Institute of Business Management
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 Global Summit on
Management Cases
GSMC 2014

RUCHI SOYA INDUSTRIES LTD.*

ABSTRACT

This case study focuses on how merger and acquisition navigated Ruchi Soya Industries Ltd.
(RSIL), RSIL in eliminating competition, tapping the opportunity in the edible oil industry
and emerging as the market leader. It focuses on the business performance analysis of RSIL’s
amalgamation and its related issues. RSIL started in 1986 and primarily dealt with processing
of oil-seeds, refining of crude oil and food products from soya. Its brand portfolio includes
Nutrela, Ruchi Gold, Ruchi Star, Sunrich and Mahakosh. These brands are well-rooted and
have a strong market presence. It has 22 manufacturing plants, 5642 non-exclusive distributors
covering over 2,210 towns and over 725, 000 retail outlets1 as on FY-2013.
RSIL’s consolidation with its sister concerns in the FY-2005 and its backward integration with
Mac Oil Palm Ltd., and Pam Tech India Ltd., in the FY-2010 increased the company’s revenue
from mere INR52 million in the FY-2004 to INR306 million2 in the FY-2012. Its net worth
also increased from INR2720 million in the FY-2004 to INR23660 million in the FY-20131,
which was almost nine times more. Its continuous expansion strategy helped Ruchi to be included
in the top 250 consumer companies of the world3.
India has emerged as a leading edible oil consumer with a share of 12%4 of the world’s
consumption. India’s domestic edible oil consumption has been growing steadily from 11 million
MT in the FY-2005 to 18 million MT2 in the FY-2013 out of which India only produces 7
million MT and rest 11 million MT are imported to meet the demand. Looking into the
present opportunities RSIL devised its business strategy which helped it to achieve a CAGR of
14%2 and accelerated its growth cycle.

1
Annual report-2013
2
Corporate presentation-2013
3
7th annual Global Powers of Consumer Products 2014 by Deloitte
4
USDA FAS

* GSMC 2014, IIM Raipur © www.etcases.com

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