MUMBAI, January 22, 2013 /PRNewswire/ --
The Theme of the Meeting was 'Burgeoning World Food Demand and the Shrinking Corporate Universe'
Ruchi Soya Managing Director Mr. Dinesh Shahra, along with Mr. Ankesh 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. 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 ex-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.
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.
About 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. For more information, visit www.ruchisoya.com.
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SOURCE Ruchi Soya Industries Limited