Mr. Prashant Duchakke, CEO and Executive Director, Rasoya Proteins Limited
"We plan an aggressive campaign for promoting the "Rasoya" brand in the coming financial year."
Rasoya Proteins Limited, promoted by Mr. Anil Narayan Lonkar was incorporated in 1992 with a main object to carry on business of manufacturers, processors, extractors, importers, exporters, distributors, purchasers, sellers and generally to deal in high protein foods, Soya flour, soymilk, refined oil from or out of Soya bean of all kinds by any type of processing. The Authorized share capital of the company is Rs80mn, divided into 80 Lakh equity shares of Rs.10/- each. The present issued, subscribed and paid-up capital is Rs.75.73mn, which was raised through an initial public offer in 1996. Presently the shares are listed on Bombay Stock Exchange. The company is engaged in the extraction of "Soya crude oil" by Solvent extraction process and has an existing plant capacity of processing 525 tons of Soya seed per day at village Wanjari, Taluka Wani, District Yeotmal, Maharashtra.
Mr. Prashant Duchakke is CEO and Executive Director of the company Mr. Prashant Duchakke is aged about 44 Years. He is having Masters Degree in commerce stream. He is having extensive experience in Soya Bean industry since last 20 years. He is with Rasoya, since 1996 i.e. from inception. A man known for his fast track implementation and management, he is looking after day-to day operations of the company. He is also very widely connected and is regarded as an expert in deciding the overall planning of the company with respect to selection of customers and suppliers. Over the years he has obtained commending position not only in this company but also in overall Soya bean Industries in and around Viderbha, Marathwada and Khandesh and now has become core person in the company.
Anil Mascarenhas of India Infoline speaks with Prashant Duchakke who says, "We plan an aggressive campaign for promoting the "Rasoya" brand in the coming financial year."
Solvent extraction appears to be a business on the decline. What are your views on the same?
Yes it is true that many players are not happy in this business and have closed down particularly in Madhya Pradesh. We enjoyed certain advantages and could perform better than others only due to the following factors.
- Virtually no competition in a span of 100 KM radius for purchase of seed with most of the plants situated in Nagpur and Amravati.
- Consistent quality of product such as Soya refined oil and De oiled Cake.
- Lower transportation cost for local DOC consumption with the poultry industry situated in Andhra Pradesh and Tamil Nadu.
- Professional management approach.
The other positive factors for us are there is a shift from other vegetable oil to Soya bean oil, the latter being oil rich in protein content. We have introduced small packs of Oil (Namely 15 Ltr, 5 Ltr, 1 Ltr pack) which results in higher profit margin as well as creating brand image of the company. The company is taking efforts in advertising the product and making it popular among the consumers. We are also exploring opportunities to export the De-Oiled Cake to outside countries.
Give us an overview of the refined oil Market in India?
Refined oil market in India is growing at 8 to 10% per year with improvement in standard of living and increase in population. Refined oil consumption in India is 8 to 9 Lakh tons per month, out of which 35% to 40% is imported. Soya bean oil is becoming popular and has a share of nearly 40% in the total oil market.
Who are your competitors?
We have recently introduced soyabean refined oil under the brand name "Rasoya" in the consumer market. We have to compete with brands like ?Gemini?, ?Fortune? and ?Nutrela?. We have plans to make an aggressive campaign for promoting the "Rasoya" brand in the coming financial year (2007-2008).
What is your outlook as far as turnover is concerned?
Our turnover target for the current financial year is Rs1.50bn and for FY08 it is Rs2bn.
Any acquisition plans?
As on today we have no acquisition plans.
What is the current capacity utilization level? What are the capacity utilization plans?
Current capacity utilization level on annual basis is around 60 to 70 percent and during the season i.e. from October to March is 90 to 95 percent. With good response from consumer market, we have plans to increase the capacity of oil refinery in near future.
Your view on margins?
Solvent Extraction industry is a high turnover and low margin business.
Tell us more of the new products in the pipelines?
We have plans to introduce ?Health drink?, ?Breakfast Cereal? and ?Texturized Veg Proteins? products in the next financial year. All are Soya based food products.
What are the new areas of business you plan to enter? What synergies does it give?
We are setting up a "Captive Co-generation Power Plant with 10 MW Capacity in Yeotmal District. This will help us in getting consistent supply of power without interruption and the down stream for the utilization in the solvent extraction plant.
Details of your power venture. What is the cost of setting it up? How much is for captive consumption and who would you the remaining power to?
Power generation plant has an investment of Rs500mn. The captive consumption is likely to 5 MW and the rest would be sold to MSEB through power purchase agreement.
What is the input for power (Raw material) how are you sourcing the same?
Input of raw material for power is a unique combination of Coal, Rice husk, Soya waste and Dolochar, which is available in nearby steel plants.
Brief us on the fund raising plans.
Fund will be raised through Bank loans and equity via preferential allotment.
What are the R & D initiatives undertaken so far? Any new products you have developed?
Our R&D efforts enabled us to launch products such as soy based ?Health drink? and ?Breakfast Cereal?. We are also working on ?Soy based snack food? and ?High protein supplement? made from soy protein isolates for body builders. We are a recognized R&D house with the CSIR. We are also planning to export these products in South East countries and USA.
You made some placement recently. At what price was it?
We made a placement at Rs.32 per share.
What is the current share holding pattern?
Promoters Holding: 69.28%
Non Promoters Holding: 30.72%
Any plans to sell more stake?
We have no such plans at present.
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