PROFILE OF SELECTED SOYA PROCESSING PLANTS IN MALWA (M.P.)

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1 CHAPTER 6 PROFILE OF SELECTED SOYA PROCESSING PLANTS IN MALWA (M.P.) 6.1 NAME AND INTRODUCTION : RUCHI GROUP OF INDUSTRIES : Ruchi Group of Industries is a well known industrial group based in Indore, Madhya Pradesh. The group has its corporate headquarters in Indore with offices in Mumbai, New Delhi, Kolkata, Chennai and other major business centers in the country. It has manufacturing and trading facilities of soybean products, oils and fats, agri business, cold rotted steel, galvanized steel, color coated steel, tor steel etc. The group also has long exposure in trading of oil, pulses and other agricultural crops. Featuring among the top five FMCG players in India, with a turnover crossing Rs, 13,000 crores, Ruchi Soya Industries Ltd. is the flagship company of Ruchi Group of Industries. Besides being a leading manufacturer of high quality edible oils, vanaspati, bakery fats and Soya 160

2 foods, Ruchi is also the highest exporter of Soya meal and lecithin from India. Nutrela (Soya chunks, granules and Soya flour) is the largest selling Soya foods brand in the country. Ruchi is a leading branded edible oil supplier. Nutrela Soyumn (Soybean oil) is a trusted option in soybean oil. Superior procurement and trading skills, continuous innovation, an endeavor to meet consumer needs and stringent quality control standards have enabled Ruchi to energy as a highly respected and admired Indian company. Ruchi Soya Industries Limited is listed on Bombay Stock Exchange Limited, National Stock Exchange of India Limited and Delhi Stock Exchange. The credit of Soya Revolution in the state of Madhya Pradesh goes to the Ruchi Group. In early 1960s Mr. Mahadeo Shahra created awareness on the potential of Soya crop amongst the farmers in the state of Madhya Pradesh. He was instrumental in bringing up a small green, revolution in the state, by introducing and encouraging soybean cultivation on a commercial scale. This effort along with that of the other resulted in Soya revolution in Madhya Pradesh and today Madhya Pradesh is considered as Soya bowl of the country. Despite all odds, Ruchi is now a leading player in the country in edible oils, Soya foods and processed foods categories. This largely due to its strict adherence to quality and continuous innovation to keep with the times. Over the years, Ruchi Soya Industries Limited has grown to become a multi million US Dollar company. Two of the strongest brands, Nutrela and Ruchi Gold are category leaders Nutrela is the most respected Soya foods brand in the country and enjoys sizeable market 161

3 share. Edible oils brands like Ruchi Gold and Nutrela Soyumm enjoy mass acceptability and acclaim from the people. Mahakosh refined Soyabean oil is known for its purity and premium taste; its nutritional qualities enhance its health quotient. Ruchi Soya Industries Ltd. Is the Flagship company of Ruchi Group, a pioneer Soya processor group, which started operating back in and is the first exporter of Soybean meal from India. Over the years, Ruchi has become one of the largest crushers of soybean in India and presently has installed capacity of about 4.1 million tons annually in 12 plants. Being a leader crusher, Ruchi with its annual export of about 6 lacs tons has also become one of the largest exporters of Indian soybean meal accounting for nearly 257 of the total soybean meal from India. Ruchi has been able to create a strong niche in the international market for its soybean meal which is in high demand particularly by the quality feed producers in South East Asia, for East and Middle East markets. Besides, Ruchi is also able to export high and value added products like edible de fatted Soya flour, full fatted edible flour, soya lecithin, soya granules, Soya flakes and Soya chunks etc. Ruchi Soya Industry is exploring new horizons beyond its traditional business interests. Ruchi Soya Industries Ltd. has been the recipient of many prestigious awards, from leading organizations like Dun and Bradstreet, Globoil and many more. It was acknowledged as the No. 1 highest exporter from Soybean Processors Association of India, Indore. 162

4 PRESTIGE GROUP OF INDUSTRIES : This name is a very known name in the field of soybean processing, food products and feed products. It is one of the leading manufacturers and suppliers of soy products. They say the key to success, lies in Honesty, Hard work and Perseverance to scale peaks of qualities and these are the very qualities that form the root of Prestige Group which is a name to reckon with in India s soybean sector. The group is imbued with a forward looking vision to acquire a global perspective and become a first rate agri business conglomerate. The Group started the first plants 60 tones capacity in Dewas, M.P. in the year This plant was then followed by a Feed Plant 1981 at Indore and Ambala. At present the group is working in diversified areas of industry which can be listed as follows :- SOYA PROCESSING PLANTS (Soybean Med, Defatted Soya Flakes, Grits, flour). Prestige Food Limited Prestige Soya Industries 163

5 Prestige Exports. Prestige Feed Mills Limited Swastika Feed Limited, Ambala. Prestige group with its five Soya processing units, using the latest technology provides international quality of Soya meal and Soya refined oil. FOOD PRODUCTS (Refined Edible Oils, Vanaspati, Hydrogenated, Vegetable Oil, Bakery Shortenings). Prestige Vanaspati Industries. Prestige Feed Mills Ltd. Prestige Agroils Limited, Ambala. Prestige Foods Limited is recognized as a large scale Golden Trading House and Prestige Feed Mills Ltd., as a recognized Export House. The group annual export turnover is to the tune of Rs. 1.5 billion per annum, to over 40 countries across the world, mainly to Asian Markets. Mr. N.N. Jain founder Chairman of Prestige Group is renowned techno craft who has played a key role in the integrated expansion of soybean farming, growth of Soya processing industry, edible oils, livestock feeds, flour milling and development of export of Soy meal to the world s market. He has been titled as Soya Man of the Millennium by a prominent publication group of India, The SAARC oils & fats today. The Prestige Group Companies with its core business as Soya Processing are capable of achieving a turnover of more than Rs

6 million including exports of Rs millions, under ideal conditions. The group is one of the largest soybean processor in India. It has the necessary infrastructure facilities available at the ideal business location for the industry. It is amongst one of the few plants in the country, which has all the integrated facilities of extraction, refining and hydrogenation under one roof. The Prestige Group has more than 25 years of track record in the field of solvent extraction and oil refining nationally and internationally. The Group has well established marketing network in India, which covers the entire country from north to south and east to west. The company s brands are well established since last over 25 years. Company has an in house facility for packing of refined oil and Vegetable Ghee. Company also has automatic pouch, jar and tin filling station. The Group Companies were the first in India to be conferred, the American seal of quality by the American Soybean Association for its Soya based value added products. With health consciousness getting momentum it is said that Soya oil and Soya based products will be more in demand in future. Prestige Industries has been a major exporter in Agri Products and commodities and has been exporting Prestige super Soyameal to over 40 countries of Asia, Africa, Europe and Middle East. Well sustained in export orientation since inception reflected in recognition as Export House enhanced to large scale Trading House and present day recognized as GOLDEN TRADING HOUSE and an EXPORT HOUSE by the Government of India. 165

6.1.3 VIPPY INDUSTRIES LTD. : Vippy Industries Ltd. began its voyage in 1973 as a private limited company and with time became one of the preferred names in the industry.

7 6.1.3 VIPPY INDUSTRIES LTD. : Vippy Industries Ltd. began its voyage in 1973 as a private limited company and with time became one of the preferred names in the industry. The first processing plant was installed with the production capacity of 60 MT/day and present Soyabean processing capacity is 1600 tonnes /day. Since its establishment the company is engaged in the manufacturing and exporting of Soya products. They say that they know the importance of proteins and hence their Soya oil and meal have ample quantity of this body building nutrient, During to this feature and overall development of the organization, the company was awarded the ISO 9001 : 2008 certification, that was the first for any Soya processing company in India. Further they were the first one to be awarded the ISO 9002 certification by SGS in 1998 and later acquired ISO certificate from BVQI. Being a pioneer producer of value added Soya products like defatted Soya flour, Soya grits and flakes for international as well as domestic market, the company has achieved Golden Status Certificate from Government of India. 166

8 Vippy Industries Ltd. is committed to conducting its business in accordance with applicable laws, rules and regulations, the highest standard of business ethics and to full and accurate disclosure in compliance with applicable laws and regulations. The company has domain expertise in manufacturing and exporting Soya products. Commonly known as artificial meat, Soybean is liked by all vegetarians and so they have come up with best Soya range which comprises Soya lecithin (Non GMO Soya lecithin), Soybean meal, Soybean TVP, Soybean refined oil and Soybean flour. All these products are made with utmost care to maintain the nutrition value. The salient features of Vippy s product are : Taste High Protein Content Hygienic Prolonged Consuming life. The state of the art of the company is spread across 20 acres of land which helps us in catering to bulk requirements. They have installed advanced plant and machines which are sourced from Switzerland and Germany. These machines are operated by our well trained and experience team of experts which helps in producing best Soya products. Some of the extra ordinary features of our infrastructure are : Well equipped quality control labs and K&D section. Online process. Characteristics of the Products. 167

9 Microbiological Analysis. Development of New Products. Quality Assurance Activities. Committed Technical & Commercial workforce. Captive Power Generation of 4MW for continuous operation. The company s believe in maintaining the towering standards of the organization and therefore aim at serving the clients with the best product and services. The organization has quality control lab which is well guided by quality auditors who make sure to check the raw Soya legumes which are sourced from trusted and reliable network of vendors PREMIER INDUSTRIES LTD. Premier Groups foundation was laid by late Shri G. L. Agrawal in the year The parent company of the group is Premier Industries (I) Ltd. The board of directors is now chaired by Mr. Rajesh Agrawal. The company is in the business of oil seed processing & refining of edible oils and dairy products manufacturing. The production activities are done in Dewas while the head office is situated in Indore, Madhya Pradesh. Premier is driven by an enduring spirit of enterprise; the diverse activities of the group are controlled by its key professionals driven by an indomitable spirit for growth and dynamics with total commitment. Premier s name is synonyms to quality and excellence in whatever they do. Across the soya and dairy industry all their products and brands command respect. Dairy products are marketed under brand name of Manthan and edible oil is sold under the brand of Taral. 168

6.1.5 DIVYA JYOTI INDUSTRIES Divya Jyoti Industries Limited is an ISO 9001:2008 certified company maintaining the quality of services to the best of its capabilities.

10 6.1.5 DIVYA JYOTI INDUSTRIES Divya Jyoti Industries Limited is an ISO 9001:2008 certified company maintaining the quality of services to the best of its capabilities. They adhere to high quality standards for Refined Soybean Oil and Soy meal which has helped them become preferred supplier of Adani Willmer Ltd., Bunge India Ltd., Cargill India Ltd., ITC Ltd., Suraj Impex India Ltd., Shri Lal Mahal, PEC Ltd. Bhaskar Ex- Oil Ltd, Jai International etc. for their product Soy meal and Ruchi Industries Ltd., K.S. Oils Ltd., Kriti Industries(I) Ltd., Prakash Solvex, Vippy Industries Ltd. Etc. for Soy Oil. Refinery has its own Effluent Treatment Plant, which is religiously operated and managed. They take full pride in their highly advance environment friendly refinery that not only reduces the water consumption but at the same time drastically reduces the effluents discharge, thus contributing its bit to make the world green. The company is Central India's trusted Soybean processing Industry engaged in processing soybean to extract valuable Soy Oil and Soy meal along with other valuable by-products like Lecithin, Acid Oil, Soy Deo Distillate. With the experience of more than a decade in the processing of Soybean, Divya Jyoti masters the art of growth fixation. In the year 1995, it started with a set-up of 300 TPD Solvent Extraction Plant with a 169

11 vision to establish long term business relations with esteemed companies by supplying them crude Soy oil & Soy meal. Today Divya Jyoti has a 700 TPD Solvent extraction plant and a 100 TPD state of the art Refinery. Their growth rate is a combined team effort and is result of technically sound infrastructure, ultra-modern machinery, hi-tech laboratory, skilled manpower, hygienic storage space & above all the dedication and experience to meet the deadlines with the assurance of quality. Salient features of Refinery:- Use of German made Westphalia Separators for the best separation quality. Eco-friendly by generating lesser wastewater than present norms. The amount produced also is treated in ETP to be partly reused and partly for secondary purposes like gardening, etc. Automated refinery operations and data management by implementing PLC technology and SCADA based operating software. Export Quality Lecithin production. Capability of refining groundnut oil, palm oil, sunflower oil, etc with the requisite add-on already installed. Ensuring quality requires a dedicated department and Divya Jyoti has a very well laid out and planned Quality Control Laboratory, capable of producing consistent and accurate results The Company has received the award of 2nd and 3rd Highest Capacity utilization in Soya Industry in year , , and

12 6.2 INSTALLED CAPACITY Installed capacity, also known as the rated capacity, nominal capacity, nameplate capacity or maximum effect, refers to the intended technical full load sustained output of a facility such as a power plant, a chemical plant, fuel plant, metal refinery, mine, and many others. In other words, installed capacity is based either on its rated (nameplate) capacity or actual (practically determined) capacity. It is the volume of products that can be generated by a production plant or enterprise in a given period by using current resources. This capacity depends on the internal technical capability of the plant to maintain output for a reasonable amount of time (for example, a day), neither momentarily nor permanently, and without considering external events such as lack of fuel or internal events such as maintenance. Actual output can be different from installed capacity for a number of reasons depending on equipment and circumstances. Table No. 6.1 PLANT WISE INSTALLED CAPACITY S. No. Name of the Company Installed Capacity Tones Per Day (TPD) 1. Ruchi Soya Industries TPD 2. Prestige Feed Mills Ltd TPD 3. Vippy Industries Ltd TPD 4. Premier Industries 600 TPD 5. Divya Jyoti Industries 700 TPD Source : Personal Interview 171

13 6.3 INVESTMENT Investment, as the dictionary defines it, is something that is purchased with money that is expected to produce income or profit. An asset or item that is purchased with the hope that it will generate income or appreciate in the future forms investment. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. The building of a factory used to produce goods is an example of investment in the economic sense. Table No. 6.2 PLANT WISE INVESTMENT S. No. Name of the Company Investment 1. Ruchi Soya Industries Up to 2500 Crores 2. Prestige Feed Mills Ltd. Up to 50 Crores 3. Vippy Industries Ltd. Up to 200 Crores 4. Premier Industries Up to 40 Crores 5. Divya Jyoti Industries Up to 60 Crores Source : Personal Interview 172

14 6.4 EMPLOYMENT Employment is a contract between two parties, one being the employer and the other being the employee. In this relationship, the employer conceives of a productive activity, generally with the intention of creating financial revenues, and the employee contributes labour to the enterprise, usually in return for payment. Employment also exists in the public, nonprofit and household sectors. An employer is any entity that hires employees; it can be a person, a company, an organization or a corporation.regarding employment related issues it was observed that the industry offers a good opportunity of employment. Although the industry is seasonal as far as production is concerned because the industry works only days in a year still it offers a good opportunity for employment. In the survey conducted it was found that a plant operating at a very low crushing capacity offers job to at least people including office staff. In big companies like Ruchi this number goes to In the year 2010 the Industry was found offering employment to 12 lacs people. It is projected that the employment opportunity offered by this industry would go up 15 lacs in the year 2015 and up to 18 lacs in the year Table No. 6.3 PLANT WISE EMPLOYMENT S. No. Name of the Company No. of Employees 1. Ruchi Soya Industries More than Prestige Feed Mills Ltd. Up to Vippy Industries Ltd. Up to Premier Industries Up to Divya Jyoti Industries Up to 500 Source : Personal Interview 173

15 6.5 PLANT WISE PRODUCTION : Table No. 6.4 PRODUCTION OF RUCHI SOYA INDUSTRIES LTD. S. No. Year Crushing (Million Ton) Source : Soyabean Processors Association of India Table No. 6.5 PRODUCTION OF PRESTIGE FEED MILLS LTD. S. No. Year Crushing (Million Ton) Source : Soyabean Processors Association of India 174

16 Table No. 6.6 PRODUCTION OF VIPPY INDUSTRIES LTD. S. No. Year Crushing (Million Ton) Source : Soyabean Processors Association of India Table No. 6.7 PRODUCTION OF PREMIER INDUSTRIES LTD. S. No. Year Crushing (Million Ton) Source : Soyabean Processors Association of India 175

17 Table No. 6.8 PRODUCTION OF DIVYA JYOTI INDUSTRIES LTD. S. No. Year Crushing (Million Ton) Source : Soyabean Processors Association of India The production of the companies cannot be calculated separately because the same quantity of seed that is processed results in variety of soy products. Basically the crushing or processing is done to manufacture soybean oil but along with this different companies also produce different kinds of products Thus to calculate the production of each company the figure relating to crushing have been taken into consideration. company. The amount of soybean crushed denotes the production of the 176

18 6.6 PLANT WISE SALES : Table No. 6.9 SALES OF RUCHI SOYA INDUSTRIES LTD. S. No. Year Sales (Rs. Crores) Source : Annual Report of the Company GRAPH SALES OF RUCHI SOYA INDUSTRIES LTD Value (Rs. in Crores)

19 Table No SALES OF PRESTIGE INDUSTRIES LTD. S. No. Year Sales (Rs. Crores) Source : Annual Report of the Company GRAPH SALES OF PRESTIGE INDUSTRIES LTD Value (Rs. in Crores)

20 Table No SALES OF VIPPY INDUSTRIES LTD. S. No. Year Sales (Rs. Crores) Source : Annual Report of the Company GRAPH SALES OF VIPPY INDUSTRIES LTD Value (Rs. in Crores)

21 Table No SALES OF PREMIER INDUSTRIES LTD. S. No. Year Sales (Rs. Crores) Source : Annual Report of the Company GRAPH SALES OF DIVYA JYOTI INDUSTRIES LTD Value (Rs. in Crores)

22 Table No SALES OF DIVYA JYOTI INDUSTRIES LTD. S. No. Year Sales (Rs. Crores) Source : Annual Report of the Company GRAPH SALES OF PREMIER INDUSTRIES LTD Value (Rs. in Crores)

23 6.7 PLANT WISE EXPORT : The facts and figures relating to exports were collected for the period of all the ten years. The data was collected on the National level. In addition to this the plant-wise data of export was also collected. During the study it was found that the maximum export was done by Ruchi Soya Ltd. The exports were done in all the ten years of study. Vippy Industries stood second; it exported in 7 out of ten years. Prestige Feed Mills made exports for 6 out of 10 years. Premier Industries exported twice during these 10 years. Divya Jyoti stood last as direct export was made by them only in the financial year In remaining years these companies made indirect exports. Table No Year Ruchi Soya Industries PLANT WISE EXPORTS (Figures in Rs. Crores) Prestige Industries 182 Vippy Industries Premier Industries Divya Jyoti Industries Source : Annual Report of the Companies

24 6.8 PLANT WISE PROFIT/LOSS : Year Table No PLANT WISE PROFIT/LOSS (Figures in Rs. Crores) Ruchi Soya Prestige Vippy Premier Divya Jyoti Industries Industries Industries Industries Industries Source : Annual Report of the Companies * * * * * 183

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