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KS Oils Ltd is in the business of manufacturing edible oils. Mustard Oil is the core business of the
company. Apart from this, it also earns income by refining soyabeen oil and power generation.
Considering the demand for edible oil, KS Oil is slated to grow in line with the organised sector, which is
growing at the rate of 25%.

After taking a look at the company’s business and its expansion plans let us understand its strengths.

Strengths:
Strong management: Promoted by the Garg family, the company is a part of a well-established business
house with decades of experience (almost 150 years) in dealing with agro-based products. Present
management includes representatives from the fifth generation family. The vast experience and foresight
of the management has helped company improve efficiency and be ahead of its peers in terms of
capacity and procurement.

Largest integrated solvent crushing capacity in India: The company, which was established in 1985,
today is one of the largest manufacturers of mustard oil in India with crushing capacity of 1,475 metric
tonnes per day of mustard seeds. The company’s integrated operations with respect to crushing, refining,
solvent extraction and vanaspati with in house packaging unit has resulted in cost savings, which results
in better margins and in turn, higher returns to share holders.

Efficient and flexible facilities: The company is not only the largest crusher of rapeseeds / mustard
seeds but also has efficient and flexible manufacturing facilities. The units are well equipped to switch to
processing of any crude edible oil. Depending upon the demand for the commodity or rather type of edible
oil demanded (mustard, refined mustard and soyabeen oil), the company could switch to processing of
any edible oil. Apart from the integrated facilities, high profitability or highest margins in the Indian edible
oil sector is the result of increased automation to achieve yields, reduced manufacturing cost on per tonne
basis of edible oil produced and the flexible facilities.

Secure raw material supply: KSO’s plants are located in the primary mustard and soya belt of the
country, Madhya Pradesh and Rajasthan, which account for over 55% of the mustard seed production in
the country. The facilities are located in the primary raw material producing states, which results in ease
in procuring raw material and also ensures smooth supply of the same. Moreover, the facilities are also
well connected to principal modes of transportation (viz railway and road) that result in savings in
transportation cost. The company has initiated bulk sourcing of seeds from NAFED. It also imports crude
soyabeen oil from South America and Palm oil for Vanaspati production from Malaysia and Indonesia.
Owing to its experience and well-established relations with raw material suppliers, the company enjoys
competitive advantage over other players.

It has not only secured raw material procurement but also has entered into agreement with kohllu (cold
press crusher for high pungency mustard oil) manufacturers over the next two years, for its huge
expansion plans (to crush 5,000 metric tones per day of mustard seeds over next 4 to 5 years). This itself
is an entry barrier for new entrants. Many new entrants are sourcing crude oil from third parties, which
has implications on maintaining quality and less scope to control costs. Thus, owing to proactive
management with years of experience in this business, the company is better placed as compared to it
peers.

Well-trained, skilled employee base: The manufacturing process requires special skills and requisite
infrastructure to get the right pungency. The employees have to manually adjust temperature depending
upon the quality of procured raw materials (seeds) to ensure the indispensable pungency. Now, this may
also be looked upon as a weakness if the competitors are able to porch the employees. However, the
possibility of the same is taken care of by the company by way of employee oriented policies in place.
Further, the onus of ensuring the quality lies upon employees and to ensure the same, they have been
given full freedom to experiment with the process of manufacturing oil, which has resulted in long lasting
association with the company.

High penetration with established brand: The company has well-established brands with high brand
recall in respective segments. The company’s brands are ‘Kalash’ (positioned as flagship brand
throughout all mustard consuming states and which it plans to launch as the National brand) and ‘Double
Sher’ (enjoys 50% market share in the North East, high penetration and acceptance in the rural areas and
also enjoys premium over other bards in this category). It sells refined Mustard oil under the brand name
KS and KS Gold, while Vanaspati is sold under the ‘Gold’ and ‘Gold Plus’ brand. Owing to its quality and
brand recall (also in the refined oils as well as Vanaspati segment) it enjoys 4.5% share of total mustard
oil market with a dominant 25% market share of branded mustard oil market. The company accounts for
40% market share in North Eastern India. KS Oil (KSO) is one of the largest and regular supplier of edible
oils to the Indian Defence Organisation and a leading exporter of soyabean / rapeseed (mustard) meal to
foreign buyers.

Power generation: The company has outlined power generation to the tune of 6.93 MW DG gensets and
8.5 MW of six windmills. The company’s objective of foraying into power generation is to support smooth
functioning of its facilities. The high dependence on costly grid power not only results in increased cost
burden but may obstruct smooth functioning units. Having said that, the planned 4 windmills of 1.5 MW
each out of which 3 windmills have been commissioned in FY07 at an investment of Rs 255 m, have been
set in Gujarat where the company does not have a manufacturing facility. It benefits from power tariff
arbitrage (it sells power in Gujarat and purchases power from the states where its manufacturing facilities
are located). Thus, power generation not only results in extended income source, but has also resulted in
reduced corporate costs.

Extensive distribution network: The company has a dominant position in the Northern and North
Eastern regions, the primary consuming markets of Mustard oil, where it transports goods through
railways racks and has own depots at the major railway arrival points. For rest of India, other Mustard oil
consuming markets, the company has set up Central Distribution Points (CDP’s) to cater to distributors
and wholesalers. At present, the company has set up a network of 350 distributors and over 45,000
retailers, which it plans to increase to 1,000 distributors and 1,30,000 retailers with the objective of
entering into newer markets such as Central and South. With the boom in the organised retail sector and
preference for packaged oil, the extensive distribution network will help company cater to the consumer
demands on a timely basis, apart from expanding its reach.

While these are the company’s strengths that help it withstand competition, we shall continue with the
SWOT analysis in the next article. ADVERTISEMENT

KS Oils: SWOT analysis

part II
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In our previous article we looked at KS Oils’

strengths. In this article, we continue our analysis
with a study of its weaknesses, opportunities and
threats.

Weakness:
No pan-India market: The company enjoys market leadership position in the mustard oil segment of
edible oils and a dominant position in the northern, northeastern and central states. However, currently
KS Oils has no presence in the southern and western parts of India. In that sense, it lacks geographical
reach. However, the company is looking at expanding its reach and plans to foray into newer markets.

Robust expansion plans: KS Oils has chalked out huge expansion plans to capitalise upon the
opportunities in the edible oil sector and sustain its market share. The company will be ramping up its
crushing capacity from the current 1,475 MT per day to 5,000 MT per day by 2010 either by organic
(greenfield) or inorganic route. The organic growth of the company is dependent upon the adequate
supply of kohllu (devise used for crushing mustard seeds). Although the company has already booked the
same to meet its requirements for the next two years, any delay in the supply will have a direct impact on
the company’s expansion plans, apart from issues related to land acquisition, clearances, and
construction work delays. In case of inorganic growth, the company needs to upgrade facilities or align
the process and environment of the acquired unit in line with the company’s operations.

Though the company is confident about its timely execution of proposed expansion plan based upon its
past experience, any delays will impact the company’s growth. Further, the company has planned more
than three fold expansion of its crushing capacity. This calls for huge fund infusion (Rs 6,500 m to Rs
7,500 m) by way of equity and debt that will dilute the returns for shareholders.

Derived prices and no pricing power: The raw material prices for the company are derived from the
selling price. Further, the sales price of mustard oil has to be aligned with the cheaper soyabean oil. Else,
the soyabean oil gets blended with the mustard oil to be sold out as refined cooking oil. Thus, the price
variation is in the range of 10% to 12% and mustard oil does not fetch higher realisations (above 10% to
12%). If the price variation increases or the gap widens then the unorganised manufacturers opt for
blended oil. Hence there is no pricing power as such. Margin expansion is possible only by way of value
addition, branding, retail packaging or introducing cost effective manufacturing process.

Opportunities:
Low per capita consumption: India is the fourth largest edible oil economy in the world. With an annual
consumption of 12 MT, per capita consumption at 12 kgs per annum is very low as compared to the world
average of 20 kgs per annum. Further, there is supply mismatch in the edible oil segment with domestic
supply being approximately 7.72 MT against demand of 12 MT. The shortfall is made up by imports, the
second largest import bill item for India. This highlights the opportunity available for domestic edible oil
manufacturers to grow and expand their business.

Growing organised sector: The Indian edible oil sector and especially mustard oil market is largely
fragmented and unorganised (85% market share), which is shifting to the organised (15% market share)
sector owing to the tax reforms (VAT) and on account of preference for packaged and branded products.
Increase in awareness regarding adulteration and increased health consciousness (mustard oil is one of
the healthiest oil as it contains leas amount of saturated fats) has further aided the growth of the
organised sector. Also, it is used in various Ayurvedic applications for skin treatment, building immunity,
etc.

The retail boom backed by rising income levels has opened up another frontier for the companies like KS
Oils to sell in retail packs that enjoy high margins and develop brand equity in line with other FMCG
products to create pricing power. These moves will not only help company expand customer base with
increased volumes but will also lead to margin expansion.
Complete integration: The company is one of the largest integrated manufacturer of mustard oil in India.
The company’s integrated operations with respect to manufacturing process of edible oil and with in
house packaging unit has resulted in cost savings, which results in better margins and in turn, higher
returns to share holders. However, still there is ample scope left to further integrate the operations both
ways - backward and forward integration.

In terms of backward integration, the company can look at captive power and plantations option. The
company has already chalked out plans to set up 6.93 MW DG gensets and 8.5 MW of windmills to
generate power. However, as the company is setting up windmills in the state of Gujarat where the
company does not have a manufacturing facility, it benefits from power tariff arbitrage. If the company
opts for captive power, it will further minimise manufacturing costs for the company. KSO has entered into
a joint venture in Malaysia with a 49% stake for the purpose of investments in and acquisitions of palm
plantations for manufacture of crude palm oil. The plantations acquired by the JV will ensure secure raw
material sourcing for crude palm oil production. The same can be mirrored in the domestic markets to
bring down production cost and enhance margins.

Talking about the forward integration, the company intends to get into bio diesel and value added
products for personal care and oleo chemicals. However, all these plans are considering the long-term
prospects of the business and which will only materialise over a period of time.

Expand geographical presence: When we discussed about the company’s weaknesses we highlighted
the fact that the company is dominant in the northern, northeastern and central states. Currently, it lacks
presence in the south and west India. This itself brings to the table an opportunity for the company to
foray into newer markets and increase customer base. With increased penetration levels the company will
be able to increase it market share along with volumes. The company is not only scouting for shelf place
but is also planning to set up manufacturing facilities in strategic locations to increase its presence in new
markets. The move is in line with the company’s objective to be cost effective while adhering to quality
standards and near to consumption markets.

Threats:
Competitive environment: KS Oils operates in a highly competitive environment. Its inability to pass on
the costs would affect its margins and returns to shareholders. Further, the possibility of new entrants
cannot be denied given the opportunities available in this sector and the other existing players ramping up
their capacities and market share.

Gets substituted: The company’s products have not yet developed the requisite brand image and hence
get substituted with other refined edible oil brands especially in the urban markets. Thus, as a remedy to
this problem the company has chalked out investment Rs 200 m for advertising, promotions and trade
push to strengthen its brands
  

Mr. Ramesh Chand Garg, Chairman, K S Oils Limited

(extreme left) receives the award for 'Globoil India Man of the
Kamat, Hon'ble Chief Minister of Goa. Also, seen in the picture ar
Minister for Agriculture, Livestock, Fisheries & Food, Government
Guillermo Alcaraz, Director General of Investment & Export, Minis
Commerce, Government of Paraguay.

K S Oils has been consistently honored by industry bodies for its unwavering focus on increasing the production of edible oils in India and d
and prosperity. The Company's growth story and vibrancy have been recognized and appreciated by the media and other influencers fro
some of the recent awards and recognitions we have received

ne of India's most Investor-Friendly company

Download pdf (620 kb)

   

Economic Times, India's leading business daily and

the world's largest read newspaper has voted K S Oils
as one of the fastest growing companies in India. It
was included in its list of ET 500.

   

Business Today, India's leading business magazine

has voted K S Oils as the 5th fastest growing mid-
size* company in 2007.
*Mid-size companies with revenues between Rs.1000-
2000 crores in 2007-08.

   

K S Oils honored with Solvent Extractors Association

(SEA) Awards for being the highest processor of
Rapeseed Oil cake for the years 1994-1995, 1999-
2000, 2004-2005, 2005-2006, 2006-2007, 2007-
2008.

   

GLOBOIL India awarded K S with the 'GLOBOIL

Emerging Company of the Year 2006' and 'Oilman of
the Year-2007' award for our Chairman Mr. Ramesh
Chand Garg

s embarked on a major journey of strategic growth and today is a leading integrated edible oil company. The journey and growth experienced in the past few years has been due to the vision, direction and team building
ership team at K S Oils. From the founder members to new & old professionals in the company to Board members, the team is second to none.
s board consists of a team of business and social pioneers who provide direction to company's executive management in a dynamic economic and ever changing business environment. The BOD consists of senior officers
ounder members, along with external members of the board who are global leaders and high achievers in business and society.
ship team consists of a healthy mix of founder members and professionals who drive the business and keep the entrepreneurial spirit alive. The team also brings in external work experience, while independent directors p
ecks and balances. Representatives of major investors bring in global insights and best practices to the company
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d in 1985, KS Oils today is one of India's leading integrated edible oil companies. The Company has been growing at a fast pace and has achieved significant milestones on
progress.

stones

ourney as a global player begins; first Indian company to acquire palm plantations abroad

This plantation in Indonesia occupies 50,000 acres (20,000 ha) and is estimated to supply 80,000 tonnes of oil to the manufacturing the refining plants in India.
Crosses the magic Rs.2,000 crore turnover with net profit of Rs. 122 crore and marches ahead to become an integrated edible oil MNC from India
K S Oils adds 28 windmills with capacity of 24 MWs.

was a very important year in the history of K S Oils.

K S Oils acquires an edible plant at Jodhpur, Rajasthan.

A strategic tie-up is made with an Alwar based plant in Rajasthan to increase production
K S Oils listed on the NSE in April 2007
The shares of the company was sub-divided to Re.1/- from Rs.10/-
Baring Private Equity Asia invested in the Company.
A GDR issue is floated and the GDRs get listed on the Singapore Stock Exchange

was the year that exhibited new dimensions for expansion.

The Company acquires oil mills on lease with a capacity of 225 TPD production
Backward integration is implemented in power sector by commissioning Wind Turbines of 2.5 MW
Citigroup's venture capital arm "Citigroup Venture Capital International Growth Partnership Mauritius Limited" (CVCIGPML) invest in K S Oils; first time a PE investing in a
company in India

nsity Polythylene Jar manufacturing unit was started to enhance the packaging system

ati Unit with a capacity of 150 Tonnes per day production was set up and commissioned.

ng operations of the Company was expanded

any goes public. It floats an IPO and gets listed on BSE, MPSE, JSE and DSE

aw the first and major expansion with the building up and commissioning of its Solvent Extraction Unit

into Mustard oil with an oil mill of crushing capacity of 150 Tonnes of oil per day.

S Oils - a Refinery with a production capacity of 60 Tonnes of oil per day

 
Ramesh Chand Garg
Sanjay Agarwal
Sourabh Garg
P. K. Mondloi
B. N. Singh
Dr. R. S. Sisodia
Rajeev Kalra
R Ganesh
Dr. R. P. Singh
Dr. J. P. Singh
Jimmy Mahtani
Rashmi Kant Nagar
Vivek Sett

 
Ramesh Chand Garg

Ramesh Chand Garg is the Chairman of the Board of K S Oils Limited. He belongs to the reputed Garg family from Morena and part of the founder family. With over
three decades of experience in the edible oil manufacturing industry, agri products and commodity exports, he is involved in the strategic initiatives of the company.
Mr. Garg articulated, designed and implemented the rejuvenated growth story at K S Oils. His vision of creating an integrated global edible oil company and focusing on
bringing back the importance of mustard oil in the daily life of the Indian consumers has resulted in the company’s success and also competitors following suit.
Mr. Garg is a member of leading industry associations and a recipient of various awards and honors. Under his leadership, the company was recently voted as one of
the fastest growth company by Economic Times, India’s top ranked business daily.   He was recently awarded ‘The Oilman of the Year-2007’ by Globoil India, one of the
world’s premier vegetable oil research organizations.
Mr. Garg takes active interest in farmer and community initiatives; he is instrumental in working with the farmers at the local level to ensure productivity increase and
best practices in farm methodologies. His views on commodity markets and edible oil sector are well sought after and he is a speaker in various international forums.

Sanjay Agarwal

Sanjay Agarwal is the Managing Director at K S Oils. He plays a lead role in defining the company strategy and in implementing the company’s growth plans to
maintain its leadership in the industry. Sanjay has been associated with the company for over two decades in various capacities. His responsibilities include overall
management, Finance & Accounting, Investments and Acquisitions.
Sanjay has been instrumental in implementing the vision of the company and has led the company’s mammoth growth in the past few years. He is responsible for the
backward integration of the company and its foray into alternative energy and global footprint. Under his leadership, the company has been voted as the Highest
Processor of Rapeseed in India for three consecutive years till 2007-08 by the Solvent Extractors Association, a premium body of vegetable oil manufacturers in India.
Sanjay is a gold medallist in M.Com. from the University of Agra. He is a Fellow Member (FCA) of the Institute of Chartered Accountants of India and the Institute of
Company Secretaries of India. He ran his own practice before joining the company.

Sourabh Garg

Sourabh Garg is the Executive Director at K S Oils. He is part of the founder family and is responsible for the domestic organic growth plans of the company. He has
previously worked in the Morena factory and currently oversees the new projects of the company in India – setting up of green field projects and capacity expansion.
He is also responsible for driving the quality movement in the company and dealing with outside partners like vendors.
Sourabh is one of the youngest member of the board and is known for his enthusiasm and hard work. Belonging to the younger generation, he brings in a lot of
understanding and directions in all project implementation and execution.  He is in-charge of implementing of global best practices, thus setting up the first automated
plant for the company. He is the TQM champion for the company.
Sourabh  was chosen as an official delegate of Solvent Extractors Association which visited various countries like Brazil, Paraguay to understand cropping patterns and
also exchange knowledge with the local government and associations.

P. K. Mondloi

P. K. Mondloi is an Independent Director and is one of the leading financial brains in the region. A banker by professional, he has extensive experience working for
Public Sector Banks. Also, he has expert understanding on issues of banking and finance like project finance and planning and lending. With an outstanding profession
career, he brings across sharp financial acumen and insights into business transactions both from a risk and reward perspective.

B. N. Singh

B. N. Singh is an Independent Director and brings with him an unmatched professional work experience of over three decades. During his illustrious tenure he held
senior positions with the Industry Department, Government of Madhya Pradesh. After his government tenure, he has served in senior positions in the private sector;
have been a consultant Hindustan Motors and Oriental Paper Mills. Mr. Singh also has worked as a Senior Advisor to Madhya Pradesh State Industrial Development
Corporation (MPSIDC)

Dr. R. S. Sisodia

Dr. R. S. Sisodia is an Independent Director and holds a Doctorate in agriculture. A very senior professional in the filed of agriculture and crop development, he is an
authority on leading issues of agri-commodity and agri-marketing in the state of Madhya Pradesh. His last assignment was as the Additional Director, Madhya Pradesh
Agricultural Marketing Board and he has served the Government of Madhya Pradesh in various capacities. An ardent believer in the Indian agri story, he adds immense
wealth of experience in this sector with specific focus on quality and agricultural R&D.

Rajeev Kalra
Rajeev Kalra is a Director at CVCI's office in Delhi NCR and focuses on private equity investments in India. Mr Kalra has about 18 years of experience in the financial
services industry, of which about 14 years have been in the private equity investment management segment.
Prior to joining CVCI, he was a key member and Managing Director at AIF Capital's India office with similar responsibilities. Earlier as the head of the India office of
HSBC Private Equity at Mumbai, he focused on identifying and evaluating private equity investment opportunities as well as strengthening the operations of portfolio
companies. He started his career with SBI Capital Markets and handled a range of investment banking and corporate finance assignments for the firm.
Mr Kalra is a professionally qualified CA and a CFA. He graduated with honours from Shri Ram College of Commerce, University of Delhi, and has several academic
distinctions to his credit.

R. Ganesh

R. Ganesh is the Executive Director at K S Oils. He is the change leader in the company's talent initiative and is responsible for all human resource and people growth in
the company. He has been associated with the company and its founders for over a decade and currently oversees the Human Resource Health of the company.
A professional with over three decades of diverse experience across sectors like finance, human resources and regulatory issues, Ganesh brings a wealth of experience
in the company. He is using global and Indian best practices in creating a professional work environment and building a strong management team. He has initiated
several people practices which has enhanced the Human capability index of the company and has contributed in creating a strong leadership and management team.
A professional Company Secretary, Ganesh also holds a degree in law.

Dr. R. P. Singh

Dr. R. P. Singh is an Independent Director and is the Director of Harcourt Butler Institute, Kanpur. He is a leading professor and academic authority in South East Asia
on oilseeds and has been involved with various research programs to increase the quality of seeds and thereby increase the yield and output. His Ph. D. thesis on
'Studies on Rice bran Oil Processing' is a great source of knowledge and has won wide recognition.

Dr. J. P. Singh
Dr. J. P. Singh is an Independent Director and Head of the Department of Agriculture Extension, R.B.S College in Agra. Dr. Singh has over three decades of teaching
experience in Agriculture Extension education. During this career, he has supervised several doctoral level research papers. He has been actively involved in developing
training programs, exhibitions, field visits in the area of Agriculture Extension. Dr. Singh has delivered several lectures on Extension Education and Training in many
universities in the state of Uttar Pradesh.
Dr. Singh has more than fifty research papers to his credit and has authored three books. He is on the Panel of Selection and Screening of Scientists at the Indian
Council of Agriculture Research and also on the Selection Boards of some leading Indian agriculture universities.
Dr. Singh holds a doctorate in Agriculture Extension.

Jimmy Mahtani

Jimmy Mahtani is the Director at K S Oils. He heads the India investment team of Baring Private Equity Asia Group, an Asia dedicated investment management firm
with US$ 2.5 bn under management. At Baring Asia, Jimmy has led investments in metals (Bhushan Power & Steel), organic textiles (Pratibha Syntex), retail financial
services (Karvy Stock Broking & Sharekhan), engineering & construction (Rithwik Projects) and real estate services (RSP Design) in addition to K S Oils.
Prior to Baring, Jimmy worked with General Altanic Partners and helped establish their practice in India. Previously he was with the North America investment banking
teams at Bear Stearns and Merrill Lynch. Jimmy graduated with honours from Georgetown University.

Rashmi Kant Nagar

Rashmi Kant Nagar is an Independent Director and a leading consultant in the fields of dairy, agriculture and rural development. Mr. Nagar has over three decades of
experience in dealing with organization, institutional development, and resource management issues for vertically integrated development of commodity-based,
stakeholder-owned, professionally managed, multi-level cooperative institutions. He held several senior positions with the National Dairy Development Board (NDDB)
from 1978-1999. He was a Planning Expert on the World Bank Dairy Sector Review Mission to Pakistan in 1982.
Since 1999, Mr. Nagar has been working as a freelance consultant for several Indian and foreign organisations. His work centres on strategic intervention for
sustainable development in dairy and agriculture sectors. Here his primary focus is on developing institutions / management systems for small producers so as to
empower them through participation in value chain development.
Mr. Nagar holds a Bachelor’s degree in Agriculture and Masters’ degrees in Dairy Science and Agriculture Economics.

Vivek Sett

Vivek Sett is a Director at K S Olis. He joined New Silk Route Advisors in February 2007 and focuses on private equity opportunities in the Indian sub-continent out of
the Mumbai office.
Prior to joining NSR, Vivek was Chief Financial Officer of Tata Realty and Infrastructure where he was mandated to lead the Tata Group's funding of a US$ 5 billion
initiative to exploit the growth in the Indian Realty and Infrastructure Sectors. He joined Tata in 2002 as Chief Financial Officer of Tata Teleservices Ltd. Vivek
supervised the finance function at Tata Teleservices Ltd., which implemented a US$4.5 billion wireless telecommunication project across the country. As a CFO, Vivek
structured the funding of complex, capital-intensive projects and restructured distressed assets with different groups of senior lenders and creditors.

November 24, 2010

K S Oils Q2 turnover at Rs. 1,035 crore, festive season sales augur well for the company

September 03, 2010

K S Oils clocks a Q1 2010-11 turnover of Rs. 1,030 crore with a net profit of Rs. 51 crore

May 31, 2010

K S Oils registers volume growth and profits through its sustainable FMCG brands in the mustard and soybean edible oil segment

January 29, 2010

K S Oils rides on a new brand launch and increased consumer demand to deliver higher volume growth and profitability

October 29, 2009

K S Oils registers strong growth in Q2 FY 09-10 on the back of strong domestic consumer demand

October 07, 2009

K S Oils continues its South East Asia foray of adding palm oil plantations

July 30, 2009

K S Oils continues strong growth momentum in Q1 FY 09-10 on the back of sustained retail consumer demand and volume growth

Jun 24, 2009

K S Oils acquires additional 35,000 acres land for oil palm plantations in Indonesia, owning a total of 85,000 acres

Apr 29, 2009

K S Oils charts aggressive growth, increases profitability and creates sustainable FMCG brands

Apr 21, 2009

Indian edible oil FMCG major K S Oils to drive global expansion from Singapore

Jan 20, 2009

K S Oils posts strong growth in Q3 FY08-09 on the back of robust domestic consumer demand

Nov 25, 2008

K S Oils announces the acquisition of edible oil refinery at Haldia Port for Rs. 125 crores

Oct 25, 2008

K S Oils continues robust growth in Q2 FY09 on the back of strong retail led branded sales

Sept 22, 2008

K S Oils 23rd AGM concludes with shareholders providing whole hearted support to the management's robust strategy of becoming an "Integrated Edible Oil Company"

Sept 1, 2008
K S Oils Announces Launch of Brand New "Consumer Centric" Website

July 28, 2008

K S Oils registers a robust Q1 FY09 performance Net sales increases by 91% to Rs. 693 crores

April 21, 2008

K S Oils crosses Rs. 2,000 crores top line milestone in FY08

March 21, 2008

Government's move to bring down duty on edible oils to zero levels, a step in the right direction to curb inflation

March 21, 2008

K S Oils welcomes Government's move to reduce duties on edible oil prices

September 26, 2007

K S Oils - Awards & Recognition

April 17, 2007

KS Oils - Disclosures under Reg. 7 (1) of SEBI (SAST) Regulations, 1997

April 17, 2007

Manufacturing agreement with Alwar based Plant

MUMBAI, October 07 (Reuters) - Edible oil maker KS Oils Ltd (KSOI.BO: Quote, Profile, Research) said on Wednesday it has expanded its land bank for palm oil
plantation in Indonesia and will invest 3.8 billion rupees to develop it over the next three years.
It has acquired 53,000 acres for plantations in the country, its third tranche of land parcel since 2008, it said in a press release. Its total land bank in Indonesia is
130,000 acres.
The company's unit, KS Natural Resources Singapore, which will fund the project, has tied-up equity infusion of 3.75 billion rupees from its parent, according to the
release.
The firm, which sells oil under the brands 'Kalash', 'Double Sher' and 'KS Refined', will look for similar acquisition opportunities in Indonesia, where the cost of palm
production per hectare is the lowest.
"We are following the footsteps of global agri-companies in building self-owned palm plantations in Indonesia, the lowest cost producer of crude palm oil in the world,"
Managing Director Sanjay Agarwal said in a release.
At 1.09 p.m., shares in firm were up 0.52 percent at 68.3 rupees in a choppy Mumbai market. (Reporting by Swati Pandey; Editing by Prem Udayabhanu)
 
 
 At K S Oils, be it reputation or capital, we believe in preserving and growing them.
Corporate governance at K S Oils is about "conscience keeping". It is about maximizing value for all our stakeholders in a legal, ethics and continuous way,
every stakeholder, the shareholder being the first among them. At K S Oils we are accountable to the entire spectrum of stakeholders - shareholders, investor
governments and society as a whole. Adherence to corporate governance practices at K S Oils' does not stem from external or legal imposition, but from our in
and ethics in personal and professional domains. At K S Oils ethics and values, the pious sentinels of corporate governance are ingrained in the character of the

We believe that Corporate Governance is an enabler to building a world class organization and that sound governance practices are critical to develop and
believe in doing fair and arm's length transactions, maintaining the highest standards of transparency, integrity and ethics.
Our Board of Directors is an eclectic mix of people who believe in setting and practicing the highest standards of performance achieved through best business
representation of Independent Directors and Nominee Directors who have global exposure, the Board seeks and adheres to the highest international norms
board members exercise their fiduciary responsibilities with utmost sincerity and beyond the written terms.
One of the most important aspects of corporate governance is the accountability of the Board towards all and we ensure minority shareholder rights are respec
the same set of information with all stakeholders, big or small is another cornerstone of our transparent practices.
As a company, we give equal importance to business conduct and business performance. For us it is important that our business performance is not at the cos
will step aside from business deals if they do not fall in line with our business conduct charter of equality, respect, integrity and trust. Today, because of our b
long-term vision we are recognized as a company that creates value not only for its immediate stakeholders but for the society as a whole.

Corporate Governance Philosophy

The important tenants of K S Oils corporate governance philosophy are:
Transparency and fairness in all our business dealings
Follow the laws of the land in letter and spirit
Creating a healthy and safe work environment for employees
Business conduct before business performance
Creating value and gains for shareholders in a transparent and ethical manner
Working with society to ensure inclusive growth

Board Members
At the helm of our corporate governance initiative is our Board, which leads the management performance and protects the long-term interests of our stake
experienced and independent Board comprising industry veterans is essential to ensure compliance with the highest standards of corporate governance. Today,
board are independent directors. It also has 2 nominee Directors of the Private Equity players who have invested in the Company.
Further, the Company has audit, remuneration, shareholder's / investors grievances committees, which comprise directors and professionals.

Press Release
K S Oils continues its South East Asia foray of adding palm oil plantations
Acquires an additional 53,000 acres of land for palm oil plantations in Indonesia, owning a total land bank of 1,38,000 acres
The company will entail an investment of Rs. 380 crores to develop this plantation over the next three years
The acquisition and funding has been done through K S Oils fully owned subsidiary KSNR Pte. Singapore and there would be no fund infusion or equity
dilution in K S Oils, India.

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K S Oils acquires additional 35,000 acres land for oil palm plantations in Indonesia, owning a total of 85,000 acres
The company reinforces its backward integration strategy by acquiring the second tranche of land; the company had already acquired 50,000 acres in
2008
The company's oil palm plantation asset purchases program in Indonesia will envisage a total fund outlay of Rs. 750 crores over a period of 3 years to
develop 85,000 acres of palm plantation. The expansion will be through a mix of equity and debt; till date, the company has spent about Rs.90 crores in the palm
plantation project.
From the recent Rs.450 crore equity infusion, which the company is receiving from three private equity players and promoters, Rs. 375 crores will be used
for developing oil palm plantation assets in Indonesia. The current acquisition shall be done from funds of this tranche. The balance Rs. 75 crores will be used in
expanding capacity for the Haldia refinery from 500 to 1,000 metric tonnes per day.
With the current acquisition, K S stands to gain self-sufficiency in its key raw material, crude palm oil (CPO) for its Haldia refinery with 50% of its
expanded refinery capacity being met by approximately 1,50,000 metric tonnes of CPO produced from its own plantations. The plantations will be ready by 2012.
The self-sufficiency in CPO will ensure substantial savings for K S Oils, which will increase the company's EBIDTA significantly; from the current buying
price of CPO at 700 USD per metric tonne from the open market, it will be able to produce its own CPO at a cost of USD 300 per MT ex-Indonesia.

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K S Oils announces the acquisition of edible oil refinery at Haldia Port for Rs. 125 crores
Company's first refinery in East India; thus giving easy access and logistics efficiencies in one of its key markets of North East, WB, Bihar, Jharkhand,
Orissa and UP
The refinery will give a boost to the company's current refined oil strategy by adding additional capacity of 500 metric tonnes per day; with six plants in
Central and North India, this refinery will compliment the East India market
Will give a boost to the company's refined oils product strategy - the refinery will produce KS Refined and KS Gold Refined oils for the eastern markets

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Acquisition of agri-assets in South East Asia

Introduction
As part of K S Oils strategy to create an integrated raw material supply chain, the Company has recently acquired two palm plantations in Indonesia and Malaysia.
These palm plantations will add significant value by lowering inputs costs and ensuring steady supply for the Company.
K S Oils will continuously look for similar plantation assets in South East Asia. Indonesia currently has the lowest cost of per hectare production for palm and its
production of palm oil is highest in the world.
While K S Oils is the first Indian company to venture into palm plantations in Indonesia and Malaysia, global agri-companies already have significant palm plantation
assets in both the countries.

Details of the plantations

K S Oils acquired 50,000 acres (20,000 ha.) of palm plantation in Indonesia with an estimated investment of about Rs.2300 million over three years. This acquisition is
K S Oil’s second in South East Asia. K S Oils is India’s first edible oil company to acquire palm plantations in Indonesia.
K S Oils plans to supply 80,000 tonnes of oil to its manufacturing and refining plants in India from its new plantation in Indonesia. These acquisitions are a part of K S
Oil’s strategy to secure its raw material supplies and insulate itself against price fluctuations. The acquisitions will also strengthen K S Oils’ position in the Indian palm
oil segment - the largest in edible oils market in India.
India relies heavily on imports for meeting the demand for palm oil. Of the approx. 4.7mt of oil imported in India last year, 3.2mt was palm oil. K S Oils, through its
Indonesian palm plantation acquisition aims at reducing its dependence on market players and securing a high productivity raw material supply base.
The acquisitions are an important step in the Company’s strategy to create forward and backward linkages in the entire value chain.

 
 
K S Oils - Where growth, profitability and market leadership is a way of life
Largest Processor of Mustard / Rapeseed oil cake in India and a leader in mustard oil.
Leaders in high-growth Food processing sector with marked rise in retail sales of branded products.
First Indian company to own Palm plantations abroad for securing raw material supply.
Trusted brands like Kalash and K S Gold creating healthy living for millions of customers.
Publicly traded company in BSE, NSE & SGX.
 
Key Financials (Rs. in Crores)

Figs. shown by way of graph and their 06-07 (Audited) 07-08 (Audited) Rs. Crore 08-09 (Audited) Rs. Crore % increase YOY FY 09 / FY 08
calculations Rs. Crore

Net Revenues 1,071.58 2,043.89 3,146.67 53.95%

EBITDA 93.75 231.86 362.04 56.15%

Net Profit 57.32 120.70 169.36 40.31%

EPS (In Rs.) 2.97 4.48 4.94 10.27%

 
Net Revenues of KS Oils (Rs. Crore)  EBDITA of KS Oils (Rs. Crore)
  
    
 
    
Net Profit of KS Oils (Rs. Crore)  EPS of KS Oils (In Rs.)

 
    
 

Manufacturing Process
K S Oils has all its manufacturing plants located in the rich mustard growing belt of Madhya
Pradesh and Rajasthan in India. The mother plant is situated in Morena and is one of the best
state-of-the-art integrated manufacturing facilities in the country. This unit situated in the midst
of the Mustard growing region of Madhya Pradesh is a state-of-the-art plant that houses all
facilities under one roof. Equipped with Kohllus and expellers to crush the oil seeds, refineries to
refine the crude oil, solvent extractor, vanaspati plant and storage tanks; what makes it an
integrated plant is its packaging department.

The uniqueness of the packaging department is that apart from packing the products, it also
produces the packing materials in-house. The Plant has a capacity of crushing 1,475 metric
tonnes of mustard seed per day, making it the largest integrated mustard oil Manufacturing Plant
in the country.

Superior quality mustard seeds are selected for the process of manufacturing to produce the best
quality edible oil. These seeds are then crushed in Kohllus and expellers to obtain crude oil,
which is directly sold as crude/virgin mustard oil to suit the taste of the conventional consumers.
Under further processing the remaining oil-cake is passed through solvent extractors to draw
solvent oils. The solvent oil is either sold for industrial use or sent to refinery to make refined oil.

In the extraction of Soybean Oil dehulled yellow soybeans of high quality are selected. These
seeds are cracked and adjusted for moisture content and then subsequently rolled into flakes.
With the help of commercial hexanes the solvent is extracted, which is further refined and
blended to produce the best quality edible oil. The refined oil finds its place directly to the
market or is further hydrogenated to generate vanaspati. De-oiled cake obtained from the
extraction procedure is either sold locally or exported to cattle/ aqua feed manufacturing
companies abroad.

Imported and local crude oils like soyabean and palm are refined in the refinery and sold as
refined soyabean oil and refined palm oil.

 
The integrated process (flow chart) from raw material to finished
products enables K S Oils to cater to a range of consumers depending
upon the taste and budget of the customer.
 

The entire process

 Selection of Seed: Seeds are selected meticulously for the production of best quality
edible oil.
 Kachi Ghani or Crude Oil: The seeds are cleaned and loaded through conveyors into
the crushers under controlled temperature to maintain pungency. The residue obtained
from crushers is processed further in the expellers to obtain oil with less pungency. The
pungent oil from the crushers and the less pungent one from the expellers are blended in a
pre-defined proportion to obtain the edible oil of right pungency.
 Solvent Oil: The filtrate from the extractor is sprayed with Hexane and distilled to
produce Solvent Oil. De-oiled cakes formed during the process is exported to cattle feed
manufacturers.
 Refined Oil: The solvent oil is passed through refineries to obtain crystal clear, de-
odorized oil or refined oil.
 Vanaspati: Hydrogenation of the refined oil produces Vanaspati.
 Storage and Packing: The oil produced in the crude, solvent and refined forms and the
Vanaspati are sent to separate storage tanks. From the storage tanks it is routed to the
packing department, where it is directly filled into tins, bottles and pouches mechanically.
This state-of-the-art packing system at K S Oils not only makes the packing attractive and
durable, but also gives a profound thought to the purity of the product and health
consciousness of the Indian customers.
K S Oils is also concerned about the environmental safety. It has therefore adopted the Green
Power Technology and has set up 34 wind mills of total 32 Mega Watt capacity to generate
green energy. This green energy saves power consumption in addition to reducing cost of
production.

To operate a manufacturing unit of its magnitude, K S Oils has a highly efficient and skilled
workforce and believes that their human resource is the key to their success. To augment the
skills of its employees, K S Oils have given them the liberty to experiment with the
manufacturing process resulting in high quality products.

K S Oils expansion plan has 4 plants coming up in the mustard producing belts of Rajasthan and
Madhya Pradesh. Also K S Oils have bought palm plantations in Malaysia and Indonesia to keep
pace with the requirement of raw materials that would arise upon the plants being operational.
These key steps taken by K S Oils to increase production would help the country at large to meet
its growing demand and attain self-sufficiency. Also these plants would provide job
opportunities to the people in the region.

Research and Development:

As a leading agri-commodity and edible oil player in India, K S Oils has focused R&D initiatives
on two fronts

 Current production, quality and best practices

 Collaborating with farmers to create a bottom up R&D approach

With the aspiration to provide the best to its precious customers, K S Oils has set up to an
effective R&D team with an indispensable R&D lab within the Company that envisions
innovation. The team ensures the quality of the seeds and crude oil that find its way to the
factory and the purity and edibility of the oil is ascertained of QC before it leaves the Company
premises.

The R&D team in close association with the farmers also conducts study and research to produce
the best seeds. This initiative taken by the R&D team of K S Oils would help in increasing the
supply of raw material to increase productivity, which in turn would help in keeping pace with
the growing demand.

Sales and Marketing:

K S Oils believes in creating a strong consumer facing front end and invests heavily in creating a
well oiled sales and marketing machinery. As a leading edible oil player in the FMCG segment,
sales and marketing play a key role in ensuring that the corporate and products brands
communicate and reach out to the customers in proper way; helping the Company in selling its
strong value proposition of purity, quality and healthy cooking oil.

K S Oils has developed a deep distribution network to reach out to its customers across the
country. This distribution network services the urban and rural market alike. Railways being the
faster mode of transport, K S Oils prefers rail to road for reaching its finished products. It also
has its own depots at the major railway arrival points. For the rest of the market in the country, K
S Oils has set up a network of C&F agents and Central Distribution Points. An aggressive
nationwide growth is being rolled out by almost doubling the number of distributors from the
current size. Today approximately 1,193 distributors and 1,85,000 retailers market K S Oils
products across Eastern and Central India.

As part of its sales and marketing efforts, K S Oils regularly communicates with the consumer on
various platforms to increase awareness of health and healthy cooking oil medium; health camps
are conducted to educate the consumer and also ensure first time trials and word of the mouth
publicity. This growing awareness has widened the markets for K S Oils across India.
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K S Oils, rides on a new brand launch and increased consumer demand to deliver higher volume growth and profitability
K S Oils Limited, one of India's leading FMCG led integrated edible oil company and the leader in branded mustard oil, posted a 34% growth in Q3 FY 09-10 on
the back of increasing market visibility, launch of Kalash refined Soybean oil and robust consumer demand.

New Delhi, Delhi, February 1, 2010 /India PRwire/ -- K S Oils Limited, one of India's leading FMCG led integrated edible oil company and the leader in branded
mustard oil, posted a 34% growth in Q3 FY 09-10 on the back of increasing market visibility, launch of Kalash refined Soybean oil and robust consumer demand.
The company declared a turnover of Rs. 1,111.84 crores during the third quarter FY 09-10 - an increase of 34% from Rs. 829.45 crores during the corresponding
period of the previous year.

Newer market penetration, Kalash Soya's brand launch and increased demand in rural areas helped the company register higher per unit margins and record
improved profits. The company reported a profit after tax (PAT) of Rs. 53.04 crores for the quarter ended December 31st, 2009 as compared to Rs. 43.08 crores
during the corresponding period of the previous financial year. Company's third quarter EBIDTA also reported a healthy increase of 46% to Rs. 134.13 crores
compared to Rs. 91.72 during the same period of last year.

Announcing the results, Mr. Sanjay Agarwal, Managing Director, K S Oils said, "The Indian consumption story continues and with signs of a global economic
recovery, we see local demand emerging stronger than ever. The launch of Kalash Soya, our first brand extension of our premium brand Kalash in refined
soybean oil has proven that consumers are ready to move to branded products, if given the guarantee of purity, health and value. K S today is focused in building
strong and trustworthy consumer brands to cater to the entire edible oil portfolio - mustard, soybean, palm and other refined oils. A renewed marketing focus,
increased advertising spend and sharp consumer research led FMCG strategy will see the company register not only volume growth but increased profitability in
the future."

Kalash Soya was launched with a focused advertising and marketing campaign. The TVC focusing on youth and fitness received good consumer recall and
demand for Kalash Soya exceeded company targets. Accustomed to KS' adherence to strict quality standards in Kalash mustard oil, customers gave an
overwhelming response to Kalash Soya brand as well; it is today among the top five soybean brands in India, within 6 months of its launch.

The company's focus in rural markets of Tier II & Tier III markets are in line with macro economic trends like increased GDP in rural households due to the
government's rural focus and benefits like employment and financial grants from various government schemes. The company today gets 70% of its total sales from
rural India and is gearing up to meet the increased demand. The new manufacturing plants are functioning at good capacity and it has helped the company
increase production, maintain quality & taste as per consumer needs and drive cost efficiencies.

In its continuous effort to gain larger market share, K S Oils is reaching out to both urban and rural India through its retail and local distribution networks. During
the quarter, the company has received exceptional response from increased penetration in newer markets like Rajasthan and Uttar Pradesh. The company is
entering Western India market through Maharashtra and Gujarat.

K S Oils is focusing and improving its supply chain and distributor network from a FMCG company focus. The company added 6 C&F agents, 60 distributors,
launched its products in over 61 new towns during the quarter. With these additions, the total number stands at 37 C&F agents, 1,193 distributors in 1,256 cities
covering 388 districts all over India, reaching out to over 1,85,000 retailers. It's distribution reach includes the states of North East (7 states), West Bengal, Bihar,
Jharkhand, Uttar Pradesh, Uttaranchal, Delhi, Punjab, Haryana, Himachal Pradesh, J&K, Rajasthan, Madhya Pradesh, Chhattisgarh, Maharashtra, Gujarat and
Orissa.

The company's main focus in the following quarters is to strengthen its brand portfolio. The company, with its brand led FMCG focus, is committed to build a
significant portfolio of brands for the entire edible oil sector, thereby gaining consumer trust and loyalty and delivering higher volume and profit growth. The
company believes that the Indian edible oil market is set to register growth and it is tapping into a consumer demand opportunity which already exists and only
needs to be met in a consolidated manner.

Notes to Editor

K S Oil Limited (www.ksoils.com):

K S Oils Limited is a leading Fast Moving Consumer Goods edible oil player from India with its premium brand Kalash. It has product offerings across all edible oils
- mustard, soybean and palm (refined) oil. With an FMCG-led brand focus, the company's promise is to deliver purity, nutrition and health to millions of Indian
consumers. Additionally, over the past two decades, the company has built significant market share across product categories. A professionally managed
company, with operations across four countries in South Asia - India, Singapore, Indonesia and Malaysia, K S Oils is creating value across the entire edible oil
food supply chain. Its international operations driven through its wholly owned subsidiary, K S Natural Resources Pte., Singapore www.ksnr.com.sg. The company
has three leading Private Equity players, CVC International, Barings Private Equity and The New Silk Route Partners (NSR) owning significant stake in the
company and partnering in its growth. The company follows a sustainable environment-friendly business practice which ensures a better and healthier tomorrow
for its consumers and other stakeholders.