Thursday 10 January 2013

Securing Origination: Ruchi Soya at the Rabo Bank Advisory Board Meeting in Hong Kong, 2012

Mr. Ankesh Shahra and Mr. Dinesh Shahra is seen with: Mr. Lex Kloosterman - Global Head ,Wholesale Clients International – Rabo Bank International December 28, 2012: Shahra – Director, Business Development for    Ruchi Agritrading Pte Ltd, Singapore were invited to attend the prestigious Rabo Bank Food & Agribusiness Advisory Board Meeting that was held in Hong Kong in November 2012. The Theme of the meeting was ‘Burgeoning world food demand and the shrinking  corporate universe” and Ruchi was specifically asked to present their views and perspectives on the importance of M&A for Ruchi across the Food and Agriculture supply chain.  Spread across two days, there were several important thought provoking issues discussed between the key decision makers of the largest Food and agribusiness companies from Asia and the world. Mr. Dinesh Shahra spoke about the importance of acquisitions at the low end of the business cycle and the value that high quality upstream assets at origination offer for companies such as Ruchi. In  a discussion moderated by x-CNBC anchor Ms. Lorraine Hahn, Mr. Dinesh Shahra mentioned that Asian companies should continue to vertically integrate but in order to remain sustainable, they must combine this integration with specialization down the chain. This is to ensure that they remain the most efficient users of the capital they possess, as niche/specialized companies are on a growth trajectory and are delivering exceptional returns. Mr. Dinesh and Mr, Ankesh Shahra is seen with
Mr. Jeroen Nijsen – CEO Asia, Rabo Bank International in the middle Ruchi Industries Singapore, the overseas holding company of Ruchi Soya that is consolidating its global assets is in the process of executing the backward integration strategy of Ruchi Soya into palm plantations and agricultural production. One of the topics discussed in Hong Kong were the challenges that stretch into asset ownership whilst securing origination. “Asset ownership in emerging economies comes with a set of risks that must be evaluated in conjunction with the superior cost structure that these countries generally offer. Sovereign and regulatory risks, management challenges, the ability to influence operations as well as differing tax regimes are all points to watch out for” says Ankesh Shahra. Ruchi Soya Industries Limited Featuring among the top five FMCG players in India, Ruchi Soya Industries is the flagship company of Ruchi Group of Industries. A leading manufacturer of high-quality edible oils, soya food, vanaspati and bakery fats, it is also the highest exporter of soya meal, lecithin and other food ingredients from India. Established in 1986, it is the largest producer and marketer of vegetable oils and soya food, the largest oilseed crusher and edible oil refiner, the largest importer of vegetable oil and the largest exporter of soya derivatives from India. Ruchi Soya has also diversified into Renewable Energy and Plantations in the recent past.

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