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20 Sep 2020, Edition - 1895, Sunday

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Business

Ruchi Soya to Explore Restructuring of its Business Units as Part of Overall Corporate Strategy

businesswireindia.com

Exercise to create value and allow flexibility in fund-raising through individual businesses

Mumbai, Maharashtra, India
Ruchi Soya Industries Limited (Ruchi Soya) announced that in its meeting held yesterday, the Board of Directors have given consent to explore an internal corporate restructuring exercise which will allow the company to consider various options such as subsidiarisation or de-merger of its business units into separate entities.

This initiative will result in independent businesses, which would operate in the areas of edible oil refining and brands, palm plantations, oil seed crushing and foods, and renewable energy.

A committee has been constituted to oversee the planning and execution of this exercise and a consultant will be appointed for proposing various options followed by a detailed scheme to the board whilst ensuring a high standard of corporate governance, transparency and fairness.

Commenting on the initiative, Managing Director, Mr. Dinesh Shahra said:

“The primary aim of undertaking this exercise is to unlock the value of our diverse businesses. This process would allow the management to focus on the respective businesses with flexibility in fund raising for future growth and expansion.

Each business would be free to explore opportunities for strategic partnerships and investors. We believe that this will enhance value for our stakeholders while providing fresh momentum for growth.”

He further added, “This exercise will help Ruchi Soya to successfully overcome the issues that have developed over a period of time largely due to macro-economic conditions much beyond the control of the company. The unlocking of value through this restructuring will help come up with a timely and effective solution to resolve our outstanding issues benefiting all our stakeholders including banks and financial institutions.”
About RUCHI SOYA INDUSTRIES LIMITED

Ruchi Soya is India’s leading Agri and Food FMCG company with a turnover of USD 3 billion. It enjoys leadership position in soy foods category in India and is one of India’s largest players in the cooking oils segment of the country. Its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star. An integrated player from farm to fork; Ruchi Soya is also among the pioneers of oil palm plantations in India. It is one of the highest exporters of value added soybean products like soy meal, textured soy protein and soy lecithin. Ruchi Soya has also diversified into renewable energy and is committed to environmental protection as part of its business strategy which reinforces its mission of becoming a truly sustainable company.

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