No reason to fear investor interest: Ruchi Soya

7405 Investors following Ruchi Soya. Share this News with them.

0

Like this story, share it with millions of investors on M3

No reason to fear investor interest: Ruchi Soya

Ruchi Soya Industries Ltd, the country’s largest edible oil producer, said there was no threat of takeover by anybody as the promoters have substantial holding in the company.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Ruchi Soya See previous management interviews See what other Experts & Brokerages are saying about Ruchi Soya Ruchi Soya BSE | NSE 10/02/12 Are Mutual Funds betting on Ruchi Soya?

Ruchi Soya Industries Ltd, the country's largest edible oil producer, said there was no threat of takeover by anybody as the promoters have substantial holding in the company.

Ruling out market rumour about Siva Group's interest in Ruchi Soya (which is said to be inching up their stake in the company), Dinesh Shahra, MD of Ruchi Soya Industries told CNBC-TV18 that promoter stake in the company was over 50% post merger of associate company. The company had last year amalgamated Mac Oil Palm Ltd, an associate company, with itself to expand its presence in palm oil plantation in India. Shahra termed Siva Group's stake acquisition in the company as "friendly interest".

He also ruled out fund raising plans in near term saying all expansions will be funded by internal accruals.

Below is the edited transcript of Dinesh Shahra's exclusive interview on CNBC-TV18. Also watch the video.

Q: One clarification because the market seems abuzz with rumours and talk that the Siva Group is inching up their stake. Is that happening? What is the plan?

A: Ours is a public company and investors are welcome to participate and invest. We welcome any investor who is interested in the company. However, edible oil is a growing industry. It is a USD 15 billion industry and we are in the business of palm and soya. They constitute almost 70% of India's vegetable oil consumption and where we have almost 20% market share. We have nutrition business as well and we have brand called Nutrela, which is a brand leader in its segment.

Edible oil consumption is a low consumption in the country today. We have almost 12-13 kg per capita consumption whereas China is 18 kg and world per capita consumption is 22 kg. So India has good growth potential for its consumption. So this industry is a very promising industry.