TRANSFORMING INDIA’S LIFELINES - Ruchi Soya

1 R U C H I S OYA I N DUST R IE S LIMIT E D. 3 1 ST A N N UA L R E PO RT 2016-17. TRANSFORMING . I N D I A' S L I F E L I N E S. A G R I C U LT U R E. FOOD. PROCESSING. NUTRITION. SECURITY. Forward-looking Statements In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as anticipate', estimate', expect', project', intend', plan', believe', and words of similar substance in connection with any discussion of future performance.

2 We cannot guarantee that these forward-looking statements will be realised, although we believe that we have been prudent in our assumptions. The achievements of results are subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. CONTENTS. CORPORATE OVERVIEW 01-08. TRANSFORMING india 's Lifeline 01. Ruchi soya in a Nutshell 02. Edible Oil Business in india 03. Food Business in india 03. Manufacturing Locations 04.

3 Capacity Break-up 05. Financial Performance 05. Message from the Managing Director 06. Enabling Community Growth 08. STATUTORY REPORTS 09-50. Directors' Report 09. Management Discussion and Analysis Report 37. Ruchi soya is associated with close to 1 crore farmers Corporate Governance Report 42. through soybean, palm, mustard and other crops FINANCIAL STATEMENTS 51-223. Standalone Financial Statements 51. Consolidated Financial Statements 137. NOTICE 224-234. TRANSFORM ING. india 'S LIFELINE. Agriculture constitutes the lifeline of the Indian economy and this holds as true today as it was in early and medieval india . With the second largest agriculture land globally, agriculture provides livelihood to around 58% of india 's population. But there are still areas which need to be transformed to secure the country's lifeline for an assured future.

4 At Ruchi soya Industries, we are Farmers need assurance in the Inthe last two years, Ruchi acutely aware of the importance face of the vagaries of nature. soya has signed MOUs with of this lifeline and are continually Ruchi 's palm plantation business the states of Maharashtra, working with our family of over touches the lives of over 50,000 Rajasthan and Karnataka 10 million farmers to strengthen farmers, with farm inputs, technical for setting up post-harvest and protect this crucial aspect of assistance and other farming the country's economy. In the key techniques to benefit farmers in management facilities oilseed crop of soybean, we impact achieving better productivity and including agri-produce close to 4 million famers. income growth with the added procurement, warehousing, surety of the offtake arrangement.

5 Cold storage and processing Agriculture in india is still The farmer count is expected facilities. dependent on the monsoon with to double with additional area only around 35% of agricultural under palm cultivation in a span procurement, warehousing, cold land covered by irrigation. At Ruchi of 5 years. A similar approach is storage and processing facilities. soya , we are encouraging and followed in Ruchi 's association with working with our family of farmers farmers cultivating other crops like Ruchi soya has also been an ardent to increase the use of drip irrigation soybean, mustard or castor. Ruchi promoter of nutritional security techniques to achieve per drop soya believes that its pro farmer for all Indians since its inception. more crop'. We also organise camps initiatives and efforts are in line In line with this vision, our to educate farmers on the latest with the vision of our Hon'ble company has undertaken massive developments in agri-technology.

6 Prime Minister to double farmers' fortification programs for our incomes by 2022. cooking oil products. This micro- Ruchi soya believes that its nutrient fortification program has pro farmer initiatives and In the last two years, Ruchi helped millions of Indians gain the efforts are in line with the soya has signed MOUs with the advantage of good health. As one of vision of our Hon'ble Prime states of Maharashtra, Rajasthan the leading manufacturers of soya and Karnataka for setting up products, Ruchi soya has helped Minister to double farmers'. post-harvest management ensure high quality vegetarian incomes by 2022. facilities including agri-produce protein availability for masses. Ruchi soya Industries Limited Ruchi soya IN A. NUTSHELL. Committed to renewable 31 india 's food and agriproducts company energy, environmental Years of corporate existence as per Fortune india 500 protection and Rankings - 2016 sustainability 19.

7 Manufacturing locations across india Enjoys leadership One of the leading position in soy foods exporters of value-added category in india and soybean products - soy LAKHS is among india 's largest players in the cooking meal, textured soy protein and soy lecithin No. of retail outlets oils segment 5,800 Owns leading brands No. of Distributors - Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star 118. No. of Company Depots Among the pioneers of 2 LAKHS + oil palm plantation in HECTARES india Land access in india for palm oil plantations with exclusive procurement rights across six states 2. Annual Report 2016-17. EDIBLE OIL BUSINESS IN india . Ruchi soya 's objective has been to cater to Indian consumers across varied price points. To meet this end it has created multiple brands across categories - be it premium, value or mass; covering the entire length and breadth of the country.

8 Premium Value Value Mass Nutrela Healthy Oils Mahakosh Refined Sunrich Ruchi Gold Edible Oils Sunflower Soyabean Sunrich Refined Refined Palmolein Soyabean Sunflower Sunflower Oil Mustard Oil Mustard Rice Bran (Kachchi Ghani). Cotton Seed Filtered Groundnut Oil Mustard Oil Ruchi soya Brand Ambassador Brand Ambassador OTHER. Total Branded Madhuri Dixit Popular South Indian PRODUCTS. Sales ` 8,646 Crores actress, Priyanka Upendra Ruchi Star Soyabean Oil (2016-17) Ruchi No. 1 - Vanaspati FOOD BUSINESS IN india . Overview Brands . Presence in both branded Premium and non-branded segments Nutrela 70% market with participation in Nutrela share in india in domestic and international premium soya chunks markets Commands a premium of 50% to other popular . One of the largest brands exporters of value-added soy products like Textured Value Soy Protein, Toasted/ Mahakosh Hunky Mahakosh Hunky Chunky Fighter brand Un-toasted/ White Soy Chunky to convert loose users Flakes and Soy Lecithin into branded consumers 3.

9 Ruchi soya Industries Limited MANUFACTURING LOCATIONS. Proximity to Ports Proximity to strategic inland locations for sourcing and distribution Pan- india Manufacturing Footprint 1. 2. 4 3. 5. 12. 6 7. 9 18. 8. 10. 11. 13. 19. 16. 17. 19 Manufacturing 14 15. Locations Across india 1. Jammu 11. Washim 2. Sri Ganganagar 12. Daloda 3. Baran 13. Patalganga 4. Kota 14. Mangalore 5. Guna 15. Chennai 6. Kandla 16. Kakinada 7. Gadarwara 17. Vijayawada 8. Haldia 18. Durgawati 9. Manglia 19. Peddapuram Note: Map not to scale 10. Nagpur 4. Annual Report 2016-17. CAPACITY BREAK-UP. OILSEED EDIBLE OIL PALM FRUIT. EXTRACTION REFINING PROCESSING. Annual Capacity Annual Capacity Annual Capacity million metric tonnes million metric tonnes million metric tonnes Facility Locations Facility Locations Facility Locations 10 13 02.

10 VANASPATI soya MEAL WIND POWER. & BAKERY FATS EXTRACTION GENERATION. Annual Capacity Annual Capacity Annual Capacity million metric tonnes million metric tonnes Megawatt Facility Locations Facility Locations Facility Locations 08 10 11. FINANCIAL PERFORMANCE ` in Crores Particulars 2016-17 2015-16 2014-15 2013-14 2012-13. Revenue 18,620 27,805 28,412 24,601 26,485. Branded Sales 8,646 9,094 8,357 6,965 6,218. Export Sales 1,052 1,754 3,360 3,599 4,321. EBITDA (687) 114 626 734 942. Gross Fixed Assets 6,042 6,040 3,877 3,692 3,519. Long-term Debt Equity Ratio 2016-17 Revenue Mix (%). Oils 74. Others 12. Extractions 7. Vanaspati 4. Food Products 3. 5. Ruchi soya Industries Limited MESSAGE. FROM THE. MANAGING. DIRECTOR. DEAR SHAREHOLDERS, difficult times has come from our We entered 2016-17 hoping for a good relentless focus on quality to make us monsoon, but an erratic monsoon did the most reliable edible oil and soy not allow agribusiness the opportunity foods manufacturer today.