KSOils Presentation

8/8/2019 KSOils Presentation

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Agenda

Section Slide No.

The Company 03

Industry Dynamics 10

K S Oils Background 26

Company’s Products and Markets 38

Manufacturing 40

Markets and Distribution 48

Historical Financial Performance 50

Strategy & Growth Initiatives 56




The Company




The Company

K S Oils Limited (“KSO" or “K S Oils” or “theCompany”) is one of India’s leading integrated

edible oil company

Code: 526209

Listed Since 1994

Code: KSOILS

Listed Since 2007




The Company

Madhya Pradesh Rajasthan W. Bengal

Morena Kota HaldiaRatlam

Guna

Integrated Manufacturing Plants

integrated capacities for crushing, refining,solvent extraction and vanaspati.

Strong Distributionnetwork

1,313 Distributors and

over 200,000 retailers

Strong brandsin crude mustard and

soya refined oil




Key Highlights – Indian Edible oil market

The branded edible oil segment (~ 25% of the total market) is expected to

grow by 25-30% p.a. in the next few years.

Mustard Oil

INR 130 bn.

Other Edible Oils

INR 620 bn.

Indian Edible oil market size

Estimated value: INR 750 bn.

Growth Estimate

8% p.a.

Branded edible oils

emerging as one of the

high growth segments

in Indian FMCGindustry


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Key Highlights

Increasing focus on retail packs

and pouches

Strong distribution network

Strong brands

Wide product range to suit local

tastes and preferences

Largest rapeseed crusher in

IndiaAdvantageK S Oils

K S Oils is well-positioned to capturethis opportunity



Key Highlights

Excellent Track Record

• Excellent sales and profit growth

• Revenues have grown at a CAGR of 46%

p.a. for the last five years while EBITDA has

grown at a CAGR of 77% p.a.

• Increase in EBITDA margins from 4.5% inFY06 to 11.82% in FY10 on account of

shifting revenue composition in favour of

branded trade packs and consumer packs

• Successfully transitioning to an FMCG company

• Increase in branded revenue from 293 crs.in FY06 to 2,496 crs. in FY10

• Growth in Retail packs from 10% of the total

turnover in FY06 to 35% in FY10

• Highest margin earner in the industry

Strong Distribution

Network

• Strong presence in mustard oil

consuming regions – 37 C&F

agents, 6 company depots,

1,313 Distributors and over

200,000 Retailers

• Initiated expansions into new

markets and organized retail

formats with refined edible oil

products





Industry

Dynamics




World Consumption Pattern

World consumption of 17 Oils and Fats

Source: Oilworld (www.oilworld.biz)

11

Source: Oilworld (www.oilworld.biz)

Soya Oil,

19.40%Palm Oil,

13.80%

Other

Oils/

Animal

Fats,

40.30%

Rape Oil,

10.60%

PKO &

CNO,

5.80%

Sunflower

Oil,

10.10%

1990-91: 81.8 Mn. MT

Soya Oil,

22.3%Palm Oil,

27.4%

Other

Oils/

Animal

Fats,25.0% Rape Oil,

12.8%

PKO &

CNO,

5.1% Sunflower

Oil, 7.5%

2008-09 : 163.15 Mn. MT




Macro-economic situation

Indian edible oil economy is world’s fourth

largest after USA, China and Brazil (India

accounted for 8.2% of world oilseeds, 6.53% oil

meal production and 10.26% of world

consumption of edible oils in Oil year 08-09)

2nd largest import bill item for India

zero level import duties by government to

help domestic players in sourcing raw

material at best and low prices

Increasing health consciousness

preference for packaged products (hygiene

factors and avoidance of any adulteration)

and low-saturated fat cooking mediums

Branded30%

Unbranded70%

Branded Mustard Edible Oils

Growth rate 40% p.a.

Other Edible

Oils - 80%

Mustard Oil18-20%

Indian Edible Oils Market – INR 750 bn.

Overall growth rate 8% p.a.




Indian Edible Oil Industry: Overview…

India accounts for 8.2% of world oilseeds output (2008-09);

6.5% of world oil meal production; 6.1% of world oil mealexport; 5.3% of world vegoil production; 13.8% of world vegoil

imports; and 10.26% of the world edible oil consumption.“ “Source: Oil World

The Independent Forecasting Service for Oilseeds, Oils & Meals

Hamburg / Germany (Website: www.oilworld.biz)

India has ~ 15,000 oil mills, 711 solvent extraction units and over 585

refineries employing more than one million people.

With an annual consumption of ~ 17 mn tons, the per capita consumption is at 14.5

kg p.a., which is very low as compared to the world average of 23.90 kg p.a.

• Domestic supply is estimated at 8 mn tons while the rest is imported.

• By 2015, per capita consumption is expected to be between 17-18 kg p.a.




Indian Edible Oil Industry: Overview

• Mustard, soyabean and palm oil account for over 75% of

total edible oil consumption (excluding butter).

• Only around 16% of Indian households consumebranded edible oils.

• Among branded oils, refined oil accounts for 60% of

consumption and crude oil (only filtered) accounts for the

balance.

• Branded edible oils have penetrated 31% of householdsin urban areas and only 9% in rural areas.

• The edible oil sector in India is largely unorganized with

a few organized players.

Popular cooking mediums used in India include

sunflower oil, mustard oil, groundnut oil, soyabean oil, palm oil andcoconut oil

Edible oil is sold in

India either in

consumer packs

(5 lt. and less than 5 lt.

pack sizes),

bulk packs (15 kg/ lt.)

or as loose oil in

tankers or barrels.




India’s Edible Oil Consumption

Palm Oil has the highest consumption in India ~40% and is almost entirely imported. Mustard oil is the largest domestic oil andconstitutes 12% of total consumption.

India’s Per capita consumption is assumed to equal current world average of 24.5 kg per person p.a. in next 10 years. India’s totalconsumption of edible oil is expected to double from current 16 Mn. Mt. to 32 Mn. Mt. by 2020.

0

2

4

6

8

10

12

14

16

18

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

O i l c o n s u m p t i o n ( M n .

t o n n e s )

Soybean Oil Groundnut Oil Sunflower Oil Mustard Oil Other Oils Palm Oil




COOIT’s Estimates of India Oilseeds Crop for 2009-10 (Nov. - Oct.)

Sr.no.

Oilseeds/ SolventExtracted Oils

OilRecovery

%

Oil -Seeds

Marketable SurplusFor Crushing & Oil

Availability

TotalMarketable

Surplus

Total OilAvailability

Kharif(Summer)

Rabi(Winter)

I. OILSEEDS

1 Groundnut (in shell) 40 5.12 3.29 1.83 1.52 0.61

2 Soybean 17 8.50 8.50 - 7.50 1.28

3 Rape/Mustard/Toria 33 6.42 0.10 6.32 6.22 2.05

4 Sunflower 35 0.99 0.32 0.67 0.98 0.34

5 Others 2.08 1.44 0.64 1.74 0.76

SUB TOTAL 23.11 13.65 9.46 17.96 5.04

II. OTHER OILSEEDS

10 Cottonseed 12.5 9.15 9.15 - 8.65 1.08

11 Copra 65 0.66 0.66 - 0.66 0.43

SUB TOTAL 9.81 9.81 - 9.31 1.51

III.SECONDARY SOURCE(Rice Bran, Oil Cakes and other Minor Oilseeds)

1.33

iv. BUTTER, as Fat (as per Oilworld) 2.16

Grand Total 32.92 23.46 9.46 27.27 10.04

Figs. in Mn. metric tonnes



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17

Rapeseed and Soybean growing areas

Minor growing areas

Major growing areas

Soybean

Mustard/ Rapeseed

Minor growing areas

Major growing areas

Ratlam

Guna

MorenaKota

Location of KSO’s Plants

Haldia




India’s Edible Oil Consumption

Consumption in India

during Nov.09 to Oct.10

is estimated to be

~17 Mn. MT

Consumption

Imports

India will have to import ~9 Mn. MT to meet the

shortfall and increased demand.

The imported oils mainly constitute crude andrefined Palm oils from South-East Asia and Soya

Degummed oil from South America.

ProductionThe Local Oil production

in India as per Trade

estimates will be around

7.88 Mn. MT




Imports of Edible & Non-Edible Oil by India

Nov. 07 to Oct. 08 – 5.61 Mn. MT Nov. 08 to Oct. 09 – 8.18 Mn. MT

Palm oil imports accounted for ~80% in the last oil year – global sourcing at best prices helping Indian edible

oil companies fulfil the increased per capita consumption.

Soyabean Oil(Degummed)

12%

Crude Palm Oil64%

Refined Palm Oil15%

Sun Flower Oil8%




Regional Consumer Preferences

Mustardnorth-east, central,

north and east

Groundnut west

Palm central and south

Soyaben north and central

Sunflower

largely consumed

in urban India, in

relatively smallquantity

Strategic Location of KS

Oils to address mustard

cultivating / consuming

belts




Key Players and Brands: Mustard Edible Oil

Company Brand Remarks

K S OilsDouble Sher, Kalash,

KS Gold

Largest player in the mustard edible oil market (crushing

capacity of 4,400 MT/ day)

NDDB DharaGCMMF (Amul) is the sole selling agent for Dhara and

markets this brand through its wide distribution network

Agro Tech SudhamRefined mustard oil which is marketed in the Eastern

market

Bunge DaldaRecently launched refined mustard/soyabean edible oil

in Eastern market

Gokul Refoils Gokul Capacity of 690 MT/ day for mustard crushing

Shri Hari

IndustriesEngine Established brand in Rajasthan

Vijay Solvex ScooterAcquired the brand 5 years ago; crushing capacity of

325 MT/day

Adani Wilmar Fortune Kachi GhaniRecent entrant in crude mustard oil (third party

manufacturing)

Ruchi SoyaMandap and Ruchi

Gold

Presence in crude and refined mustard oil (third party

manufacturing)




Outlook

The demand for edible oils is expected to increase from current levels of 16.6

million tonnes in 2009 to 22.5 million tonnes by 2015.

-- The Solvent Extractors' Association of India

“

India’s dependence on imports is expected to increase to the extent of ~44% of its consumption

requirement. The improvement in yields and the increase in area under cultivation are expected to

ensure that domestic oilseed production is sufficient to meet only ~56% of consumption requirement.

Particulars 2015

Total Demand (Million Tonnes) 22.5

Total area under Oil seeds (Million Hectares) 30

Yield (Tonnes/ hectare) 1.3

Production of Oil seeds (Million Tonnes) 42

Domestic supply of edible oils (Million Tonnes) 12.5

Total edible oil imports (Million Tonnes) 10

Imports as share of demand 44%




Mustard Oil Industry: Mustard Seeds

• The uniqueness ofmustard lies in the fact that

it has a very high oil

content (~40-42% by

weight) and that it is a

hardy short duration crop

requiring nominal amount

of water and fertilizers

• Mustard seeds have a

shelf life of 3-4 years and

mustard oil is a naturalpreservative with

antioxidants, which makes

it the preferred oil for

pickles

• Rajasthan (~42%), UttarPradesh(~15%), Madhya

Pradesh & Chhattisgarh

(~14%) contribute 71%

of the total Indian

production

• The balance 32% is

cultivated in Punjab &

Haryana, Gujarat, West

Bengal, Assam, Bihar,

Himachal Pradesh &Orissa

• Mustard is a winter crop,it requires a temperate

climate to prosper. The

sowing period in India is

during the early Rabi

season i.e. October to

November

• The crop starts flowering

in the months of

December, January and

February. The harvestingperiod is from February

to May

Mustard Seed Cultivation Cropping Pattern




Mustard Oil: ‘The Heart-friendly Oil’

91

51

43

27

19

18

15

15

13

12

9

8

7

7

39

47

19

48

44

75

23

29

16

16

77

61

1

1

8

1

1

57

1

11

2

10

9

54

33

38

9

54

57

18

14

21

71

Coconut Oil

Palm Oil

Lard

Cottonseed Oil

Peanut Oil

Rice barn Oil

Olive Oil

Soybean Oil

Corn Oil

Sunflower Oil

Flaxseed Oil

Safflower Oil

Mustard Oil

Saturated Fat Monounsaturated Fat Polyunsaturated Fat

Alpha-Linolenic Acid – Omega 3

Linolenic Acid – Omega 6

Comparison of Dietary fats

Mustard Oil has

the least amountof saturated fat

as compared to

all other edible

oils




Mustard Oil: ‘The Heart-friendly Oil’

A study was conducted among 350 cases of heart attack in eight hospitals and 700

normal people in Delhi and Bangalore by a team comprising experts from

All India Institute of MedicalSciences, New Delhi

Boston

St. John’s Medical College

Bangalore

Dr K Srinath Reddy from AIIMS, renowned

scientists involved in the study, says

Use of mustard oil was associated

with a two-fold lower risk than was

use of sunflower or other oils,

Similarly, those who use mustard oil

for frying foods lower their risk for

heart attack by 71 per cent.

“

• The reason for the protective effect of

mustard oil is that it is rich in alpha

Linolenic acid which is a source of

omega-3 polyunsaturated fatty acids,

known for giving protection to heart.

• Alpha Linolenic acid reduces the

adhesion-aggregation tendency of bloodplatelet which should decrease the risk

of heart attack.

Published in

“




K S Oils

Background




The Company

K S Oils is in the business of manufacturing and marketing of branded crude

mustard (rapeseed) oil and refined mustard/other edible oils

The Company is the largest processor

of rapeseed in India

• Largest player in the crude

mustard oil market• Largest exporter of rapeseed

deoiled Cake (200-09)

• Significant presence in the

refined oil market (soyabean/

palm)

• Other products include vanaspati,

Soya deoiled cake, solvent oils,

fatty acids and other oils

Manufacturing and Distribution

Manufacturing facilities are located

in Madhya Pradesh, Rajasthanand West Bengal.

Strong distribution network with 37

C&F agents, 1,313 Distributors

and over 200,000 Retailers.

Code: 526209Listed Since 1994

Code: KSOILSListed Since 2007

Estd: 1985




The promoters

The Company is part of an old established business house belonging to the

Garg family from Morena, Madhya Pradesh dealing in agro basedproducts for the last 150 years

The Promoters are currently engaged in the edible oils business only

Mr. Ramesh Chand GargChairman

• belongs to the fifth generation of

the Garg family.

• has vast experience in business

of agriculture commodities,

project expansion, sales anddistribution

Mr. Sourabh GargExecutive Director

• is from the promoter family

• is actively involved in green field

project activation and new

infrastructure initiatives

• also looks after the productexpansion initiatives




Management Team

Name Designation Profile

Sanjay

AgarwalManaging Director

He has over 20 years of experience in thissector and is the main driver in the Company’s

expansion & growth; key person driving

backward integration.

Sunil AlaghHead - Marketing

Advisory Committee

Ex-CEO of Britannia and one of the most

celebrated Marketing Guru’s in India. He

formulates the Marketing and Brand strategies

of the company.

Himanshu

Gandhi

Global Head-

Business Strategy

He has experience in edible oils international

trade. He drives strategic new business

initiatives and international foray of the

company.

R Ganesh Executive Director

He has been a strategic advisor to top

companies on policy issues. He is in charge of

the K S Oil’s HRD policies.




Board of Directors

Name Designation Profile

Rajeev Kalra Director He is nominee of the Citi Venture Capital group.

Jimmy Mahtani DirectorHe is nominee of Baring Private Equity Asia III

Mauritius.

Vivek Sett Director He is nominee of New Silk Route Advisors.

P K MandloiIndependent

Director

He has extensive experience in the banking sector

and guides the Company in financial matters.

Dr. R S SisodiaIndependent

Director

He is a Doctorate in agriculture and looks after

quality control areas R&D.




Corporate Social Responsibility

• The Garg family are founders of a school teaching

1,200 students from nearby rural areas.

• A not-for-profit organization, it is the only school in

Morena that has high education standards, state of

the art computers and recreational facility like horse

riding and ample greenery.

• The Company has been instrumental in promotinglocal brick industry using Company’s coal ash

remnants from boiler

• The Company employs about 3,500 people, directly &

indirectly.

• It supports 50,000 families like farmers supplying

their produce and dependent downstream industries

like transporters, brick factories, farmers, distributors,

etc.




Awards & Recognition

KS Oils is one of the fastestgrowing companies in India.

The Economic Times

ET500

sound companies

BW REAL 500

Best Value Creat or

(small cap)2008

Business Today

5th Most Investor Friendly Company

Oilman oft he year

a Premier Association of Vegetable Oil Industry & Trade

Highest Processorof Rapeseed Oilcake

2004-05 | 2005-062006-07 | 2007-082008-09



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Shareholding Pattern

Note: The Company had allotted 62,247,230 equity shares of Re. 1 each in favour of the Custodian

underlying three GDR's Issues of total USD 64 Million.

As on 30th June, 2010

33




K S Oils Operations

• Sourcing: mustard seeds from Rajasthan, M.P., U.P. and Delhi

• The Company also does bulk sourcing of seeds from NAFED

• Bulk crude oil is either imported or sourced from Madhya Pradesh and Delhi

• Facilities located in Madhya Pradesh, Rajasthan & West Bengal

• Total installed capacity

• Solvent Extraction – 4,200 MT/ day

• Vanaspati – 250 MT/ day

• Crushing Capacity – 4,400 MT/ day

• Refinery – 1,600 MT/ day

• Sales through C&F Agents and Company Depots

• North-East and Eastern Region: goods dispatched to branches and

depots via. Railway racks and sold directly to Distributors.

• Mustard oil (Double Sher & Kalash brands)

• Refined oils (Kalash, KS Refined & KS Gold brands)

• Vanaspati (KS Gold & KS Gold Plus brands)

Products andBrands

Sourcing

Manufacturing

Distribution






SWOT Analysis

• Management experience of decades in this business

• Largest integrated solvent/ rapeseed crushing capacity in India

• Established brands in crude mustard oil, refined oil and vanaspati

• Efficient and flexible manufacturing facilities

• Captive power production (92 windmills - 78 MW)

• Loyal customer base

• Secure raw material supply

• Extensive distribution network

• Among the highest margin earners in the Indian Edible Oils sector

S t r e n g t h s




SWOT Analysis

W e a k n

e s s

• Currently limited presence in

West India and no presencein South India

• Ongoing consolidation in the

mustard/ domestic oilseed sector

and conversion of unorganized

(70%) to organized market (30%)

• Continued growth in the Indian

edible oil industry fuelling need

for organic growth throughgreenfield projects to tap other

cultivating regions

• Backward integration

(plantations and power

generation) and forward

integration (value added products

for personal care and oleo

chemicals)

O

p p o r t u n

i t y

T h r e a

t s

• Competition from substitutes

(refined edible oil brands) for

KSOL’s refined oil products

• Weak regulatory environment in

India – spurious and adulterated

oil being available in the market




Company’s Products

and Markets




Company’s Brands

Kalash is the flagship brand for mustard oil wellknown for purity, pungency and colour

Double Sher has 30% market share in North

East India and enjoys a premium over other

brands. It has high penetration and acceptance

in the rural areas

The Company has established brands with high brand recall in their respective segments:

Brand extensions for refined oil with high

customer recall for purity

KS and KS Gold are well accepted brands in the

refined oil as well as Vanaspati segments.

Mustard Oil

(Kalash and Double Sher)

Refined Oils

(Kalash, KS and

KS Gold)

Vanaspati

(KS Gold and

KS Gold Plus)




Manufacturing




Manufacturing Strategic Locations

The manufacturing units are located in

Morena, Ratlam, Guna in Madhya Pradesh

and Kota in Rajasthan and a Port based

Refinery in Haldia, West Bengal

Integrated Packaging

The operations of the Company are fully integrated with in-

house packaging department which completely meets theCompany’s requirements of tin, HDPE jars, pouches and

PET bottles

The integrated nature of the manufacturing units of the

Company’s divisions is a very important source of KSOL’s high

profitability. Significant operational efficiencies by reducing power

and fuel costs, chemical costs and increasing automation have

been achieved

Ability to process

varied oilseeds and

any crude edible oilThe facility is well

equipped to switch to

processing of any

crude edible oil

Operationally efficient




Manufacturing

DivisionTotal Current

Capacity

Crushing 4,400 MT/day

Solvent Extraction 4,200 MT/day

Refinery 1,600 MT/day

Vanaspati 250 MT/day

Factories

One of the most modern and integrated state-of-the-art

edible oil manufacturing plants in India

Current Capacity




Manufacturing – Integrated Process Flow Chart

d h h h ( d ) l




Mustard Kachchi Ghani (Crude) Oil

• Kohllu has been traditionally used in the

manufacture of mustard oil; in the process the

seeds are broken in open air, during the processcertain enzyme is released. This enzyme provides

the pungency to the oil.

• Pungent mustard oil/ Kachchi Ghani is very popular

in the northern, eastern and north-eastern states of

India

• The process of extracting oil using only expellers

results in high temperatures thus losing its

pungency. In the Kohllu process, temperatures are

controlled to maintain the pungency and hence, the

Kohllu process is critical from consumers need and

preference for pungency in mustard oil

• The process begins with the cleaning of the

mustard seeds which are then loaded through

conveyor belts in to the Kohllus (cold press

crushers)

Rapeseed

d h hi Gh i (C d ) Oil




Mustard Kachchi Ghani (Crude) Oil

• The Company has skilled labour trained in the

art of manufacturing pungent oil through this

method

• Manufacturing Kachchi Ghani oil from Kohllu is

relatively less scalable, thus creating significant

entry barriers for new players.

• 22% oil is obtained in the Kohllu, which is

extremely pungent and inedible (pungencyfactor of ~0.38). The residue oil cake is further

processed in the expellers. This results in 13%

oil which has pungency of ~0.12.

• Both the oils obtained (i.e. from Kohllus and the

expellers) are blended to obtain the perfectblend of edible oil with pungency of ~0.27 to

0.28

• The mustard Oil cake is then fed into solvent

extractor via conveyors to extract the remaining

oil .

Kohllu – Cold press crusher for high

pungency Mustard Oil



O h F ili i




Other Facilities

Packaging

In-house packaging department completely meets the

Company's requirements of tin, HDPE jars, pouches andPET bottles. The equipment includes offset printers,

pouch filling machines, tin automatic filling machine and

automatic bottle filling plant

PowerCaptive Power production capacity of over

92 Windmills (78 MW)

Effluent Treatment

The effluent treatment plant handles the

entire effluents of K S Oils. The effluent

treated water is completely recycled in-house

resulting in zero release of effluents

Quality Control (“QC”)

The QC lab does standardization as per

AGMARK, V.Q.P and P.F.A. parameters

The Company was awarded the ISO 9001:2000

certification for Quality Management Systems for

Manufacturing and Supply of Edible Oils




Markets and

Distribution

M k t d Di t ib ti




Markets and Distribution

The company has 1,313 Distributors and over 200,000 retailers serviced by the

company’s 275 member strong marketing team

Company’s markets are classifiedas:

• North East region (NE) & East

(West Bengal & Bihar) where

the Company is the market

leader and which contributes ~

28% of Company’s oil revenues;

• Central & North India - Uttar

Pradesh, Madhya Pradesh,

Delhi, Rajasthan, Himachal,

Haryana, Punjab and Jammu &

Kashmir.

For each market mentioned, the Companyhas a distribution network:

• For the East and NE Region, goods are

transported through railway racks. Kolkata,

Guwahati and Dimapur are the major

railway arrival points for the Company’s

goods in this region. The Company has its

own depots in these stations.

• For the rest of India, the Company has set

up a network of C&Fs and Depots to cater

to Distributors and Wholesalers.

Markets Distribution Network




Historical Financial

Performance

Hi t i l P fit & L St t t




Historical Profit & Loss StatementINR. Mn.

Particulars 2005-06

(A)

2006-07

(A)

2007-08

(A)

2008-09

(A)

2009-10

(A)

Total Income 6,082 10,716 20,572 31,782 40,997

Less: Raw Materials 5,290 9,073 16,874 25,625 33,454

Manufacturing Exps. – Direct 251 313 526 633 946

Gross Profit 541 1,330 3,172 5,494 6,597

Expenditure

Selling Expenses 138 238 499 771 884

Administration Expenses 131 154 354 1,102 953

Operating EBITA 272 938 2,319 3,621 4,760

Depreciation 29 45 122 268 529

EBIT 243 893 2,197 3,353 4,231

Interest and Finance Charges 72 154 375 743 1,564

PBT 172 739 1,822 2,610 2,668

Provision for Taxation 24 166 615 916 423

PAT 148 573 1,207 1,694 2,245

A l i




Analysis

Company’s revenues touched INR

40,00o mn. in FY10, growing over 6

times in last 5 years from INR 6,082

mn. in FY 2006

This growth was on account of high growth in

revenues of the Mustard and Refined oils, newcapacity additions and geographical expansion

into newer markets.

Overall EBITDA increased by 17.5

times from INR 272 mn. in FY 2006

to 4,760 mn. in FY 2009

This leap was driven by increase in sales of

branded products and increase in sale of

small SKUs.

Hi t i l B l h t




Historical Balance sheetINR Mn.

Particulars+Mar-06

(A)Mar-07 (A) Mar-08 (A) Mar-09 (A) Mar-09 (A)

Sources of Funds:

Shareholders Funds

Share Capital 85 221 332 356 409

Equity Share Entitlement Warrants 0 238 500 0 713Deferred Government Grants 11 10 9 9 8

Reserves and Surplus 373 1,434 6101 8,707 13,395

468 1,903 6,942 9,072 14,525

Loan Funds:

Secured Loans 788 852 2,847 9,319 14,773

Unsecured Loans 86 150 0 0 0

874 1,002 2,847 9,319 14,773

Deferred Tax Liability 0 155 415 1,051 999

Total 1,341 3,060 10,204 19,442 30,297

Application of Funds

Fixed Assets

Gross Block 597 1,378 2,904 6,920 11,738

Less: Accumulated Depreciation 159 203 324 589 1,118

Net Block 438 1,175 2,580 6,331 10,620

Capital WIP 0 169 1,837 3,535 787

Investments 185 779 1,960

Current Assets, Loans and Advances

Inventories 1,552 2,477 4,414 9,747 17,174

Sundry Debtors 154 139 1,064 1,208 2,310Cash and Bank 61 131 1,496 666 1,236

Loans and Advances + Deposits + other Current

Assets57 454 2,068 1,905 3,795

Total Current Assets 1,824 3,201 9,042 13,526 24,515

Less: Current Liabilities and Provisions

Current Liabilities 875 1,273 2,826 3,818 6,712

Provisions 46 235 614 911 873

921 1,508 3,440 4,729 7,585

Net Current Assets 903 1,693 5,602 8,797 16,930

Misc. Expenditure 0 23 0 0 0

Total 1,341 3,060 10,204 19,442 30,297

1st Qtr FY 11 (Unaudited)




1st Qtr. - FY 11 (Unaudited)

Particulars Amount

Total Revenue 10,324

EBIDTA 1,173

Interest 437

Depreciation 155

PBT 581

Current Tax 57

Deferred Tax 19

Net Profit after Tax 505

in INR Mn.

Changes in Capital Structure




Particulars Date No. of Equity Shares Amount (INR)

Equity Share Capital as on 31.03.2006 8,392,900 83,929,000

107,100 forefited shares allotted on reissuance 12.08.2006 107,100 1,071,000

Equity shares allotted on Pref. basis (INR 225 per share) 19.08.2006 900,000 9,000,000

Bonus in Ratio of 1:1 11.09.2006 9,400,000 94,000,000Equity Shares Allotted to CVC at INR180 per share 23.12.2006 3,291,656 32,916,560

Warrants issued to CVC – 1,708,344* & Promoters – 2,300,000** at INR 180per warrant 23.12.2006

Equity Share Capital as on 31.03.2007 22,091,656 220,916,560

Shares Split in Ratio of 1:10 25.07.2007 220,916,560 220,916,560

Equity Shares Allotted to Baring Pvt. Equity Asia III at INR 41.9 per share 22.08.2007 21,479,710 21,479,710

Equity Shares Allotted to CVC Trustees at INR 41.9 per share 22.08.2007 90,720 90,720

Warrants issued to Promoters – 23,866,350*** at INR 41.9 per warrant

30,744,610 equity shares of Re. 1/- each (at INR41.9 per share) underlyingthe GDR's Issue of USD 31.42 Mn. 07.09.2007 30,744,610 30,744,610

273,231,600 273,231,600

Warrants converted by Promoters** 22.10.2007 23,000,000 23,000,00019,093,100 equity shares of Re. 1/- each (at INR41.9 per share) underlyingthe GDR's Issue of USD 20.53 Mn. 08.11.2007 19,093,100 19,093,100

Warrants converted by CVC* 26.03.2008 17,083,440 17,083,440

Warrants converted by Promoters*** 25.10.2008 23,866,350 23,866,350

Equity Shares Allotted to New Silk Route Advisors at INR 48.43 per share 01.07.2009 27,921,406 27,921,406

12,409,520 equity shares of Re. 1/- each (at INR 48.43 per share) underlying

the GDR's Issue of ~ USD 12.5 Mn to New Silk Route Advisors 15.07.2009 12,409,520 12,409,520396,605,416 396,605,416

Warrants issued to Promoters – 28,807,339 at INR 54.5 per warrant**** 01.07.2009

Warrants to be issued to CVC – 8,672,566 a t INR 56.5 per warrant**** 01.07.2009

Warrants issued to Baring Pvt. Equity , Asia III – 8,672,566 at INR 56.5 perwarrant**** 01.07.2009

Warrants converted by Promoters**** 29.01.2010 12,346,002 12,346,002

Total issued Equity 408,951,418 408,951,418

Total diluted Equity 442,757,887 442,757,887

Changes in Capital Structure

**,*** Promoters paid 50% money upfront at the time of subscription of warrants.

**** Paid 25% money upfront at the time of subscription of warrants.




Strategy &

Growth Initiatives



Vision




Vision

To deliver Health and Prosperity

To achieve a turnover of INR 8 bn by 2013

To consolidate market leadership position by achieving

20% market share in mustard oil

To accelerate the conversion of the loose unbrandededible oil market to the branded retail market



Strategy Way ahead




Strategy – Way ahead

Global and Domestic Growth options

Backward and Forward integration

Plantation

Crude OilProduction

Refining

Processing &Products

Final Distribution

Secure raw material supply globally & source it

from best yield geographies

Farms

De-risking strategy




De-risking strategy

Global de-risking strategy for raw material supply

- owning palm plantations across the globe

• Proof of concept Aug. 2007

364 hect. of palm plantation in Malaysia

• Fortifying strategy Mar. 200820,000 hect. of palm plantation land in Indonesia

• New acquisitions in 2009

35,500 hect. of palm plantation lands in Indonesia

Self sufficiency by global agri-companies in raw

material sourcing will help insulate against short

supplies and spiraling prices.

REPORT

“ “

Indonesia




Indonesia

Oil Palm Cycle




Oil Palm Cycle

Nursery




Nursery

Several factors are taken into

consideration when deciding the

location of pre-nurseries to grow

seedlings, including a nearby source of

water, flat land, good drainage and

proximity to sources of labor.

On each plantation, the Company

intends to build the appropriate

infrastructure to bring water sources to

seedlings and allow smooth drainage.

Immature Plantation




Immature Plantation

Immature Plantation




Immature Plantation

Palm Tree




Palm Tree

Palm Seed and Fruit




Palm Seed and Fruit

Mature Plantation




Mature Plantation

FFB harvesting




FFB harvesting



Thank YouK S Oils LimitedRegistered and Corporate Office -

Jiwaji Ganj, Morena 476 001, Madhya Pradesh - India.

Phone: +91 7532 300000 • Fax: +91 7532 405060

email: [email protected]

Documents

KSOils Presentation