KSOILS Investor Presentation

Delivering Health and Prosperity
Investor Presentation
526209 KSOILS KSO@IN KSOI.BO
2011, K S Oils Limited. All Rights Reserved. Disclaimer: The information contained herein is subject to change without notice. This material was used during an oral presentation; it is not a complete record of the discussion. K S Oils Limited accepts no liability whatsoever with respect to the use of this document or its content. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.
Agenda
Section The Company Industry Dynamics K S Oils Background Companys Products and Markets Manufacturing Markets and Distribution Historical Financial Performance Strategy & Growth Initiatives
Delivering Health and Prosperity www.ksoils.com
Slide No. 03 10 26 38 40 48 50 56
2
The Company
The Company
K S Oils Limited (KSO" or K S Oils or the Company) is one of Indias leading integrated edible oil company
Code: 526209 Listed Since 1994
Code: KSOILS Listed Since 2007
The Company
Integrated Manufacturing Plants
integrated capacities for crushing, refining, solvent extraction and vanaspati. Madhya Pradesh Morena Ratlam Guna Rajasthan Kota W. Bengal Haldia
Strong Distribution network

1,400 Distributors and over 200,000 retailers
Strong brands
in crude mustard and soya refined oil
Key Highlights Indian Edible oil market

Indian Edible oil market size Estimated value: INR 750 bn. Mustard Oil INR 130 bn.
Branded edible oils emerging as one of the high growth segments in Indian FMCG industry
Other Edible Oils INR 620 bn.
Growth Estimate
8% p.a.
The branded edible oil segment (~ 25% of the total market) is expected to grow by 25-30% p.a. in the next few years.
Delivering Health and Prosperity www.ksoils.com 6
Key Highlights Advantage K S Oils

Largest rapeseed crusher in India Wide product range to suit local tastes and preferences Strong brands K S Oils is wellpositioned to capture this opportunity Strong distribution network Increasing focus on retail packs and pouches
Key Highlights
Excellent Track Record
Excellent sales and profit growth
Revenues have grown at a CAGR of 46% p.a. for the last five years while EBITDA has grown at a CAGR of 77% p.a. Increase in EBITDA margins from 4.5% in FY06 to 11.82% in FY10 on account of shifting revenue composition in favour of branded trade packs and consumer packs
Successfully transitioning to an FMCG company
Strong Distribution Network

Strong presence in mustard oil consuming regions 37 C&F agents, 6 company depots, 1,400 Distributors and over 200,000 Retailers Initiated expansions into new markets and organized retail formats with refined edible oil products
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Increase in branded revenue from 293 crs. in FY06 to 2,496 crs. in FY10 Growth in Retail packs from 10% of the total turnover in FY06 to 35% in FY10
Highest margin earner in the industry
Key Highlights
Largest crushing capacity in India - 4,400 MT/day located in Madhya Pradesh and Rajasthan Integrated facilities at the countrys strategic raw material and consumer belts Captive power generation and inhouse packaging units
Quality manufacturing facilities
Strong management with decades of experience in agri commodities
Part of an established business house belonging to the Garg family from Morena, Madhya Pradesh dealing in agro based products for the last 150 years Present management includes representatives from the fifth and sixth generation of the family
Industry Dynamics
10
World Consumption Pattern

World consumption of 17 Oils and Fats 1990-91: 81.8 Mn. MT
Other Oils/ Animal Fats, 25.0%
2008-09 : 163.15 Mn. MT

PKO & CNO, 5.1% Sunflower Oil, 7.5% Rape Oil, 12.8%
PKO & CNO, 5.80% Other Oils/ Animal Fats, 40.30%
Sunflower Oil, 10.10% Rape Oil, 10.60%
Soya Oil, 19.40% Palm Oil, 13.80%
Palm Oil, 27.4%
Soya Oil, 22.3%
Source: Oilworld (www.oilworld.biz)

Macro-economic situation
Indian edible oil economy is worlds fourth
largest after USA, China and Brazil (India accounted for 8.2% of world oilseeds, 6.53% oil meal production and 10.26% of world consumption of edible oils in Oil year 08-09)
Indian Edible Oils Market INR 750 bn. Overall growth rate 8% p.a. Mustard Oil 18-20% Other Edible Oils - 80%
2nd largest import bill item for India

zero level import duties by government to help domestic players in sourcing raw material at best and low prices
Branded Mustard Edible Oils Growth rate 40% p.a. Branded 30% Unbranded 70%
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Increasing health consciousness

preference for packaged products (hygiene factors and avoidance of any adulteration) and low-saturated fat cooking mediums
Indian Edible Oil Industry: Overview

6.5% of world oil meal production; 6.1% of world oil meal
export; 5.3% of world vegoil production; 13.8% of world vegoil imports; and 10.26% of the world edible oil consumption.
Source: Oil World The Independent Forecasting Service for Oilseeds, Oils & Meals Hamburg / Germany (Website: www.oilworld.biz)
India has ~ 15,000 oil mills, 711 solvent extraction units and over 585 refineries employing more than one million people. With an annual consumption of ~ 17 mn tons, the per capita consumption is at 14.5 kg p.a., which is very low as compared to the world average of 23.90 kg p.a.
Domestic supply is estimated at 8 mn tons while the rest is imported. By 2015, per capita consumption is expected to be between 17-18 kg p.a.
India accounts for 8.2% of world oilseeds output (2008-09);
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Indian Edible Oil Industry: Overview

Popular cooking mediums used in India include
sunflower oil, mustard oil, groundnut oil, soyabean oil, palm oil and coconut oil
Mustard, soyabean and palm oil account for over 75% of total edible oil consumption (excluding butter). Only around 16% of Indian households consume branded edible oils. Among branded oils, refined oil accounts for 60% of consumption and crude oil (only filtered) accounts for the balance. Branded edible oils have penetrated 31% of households in urban areas and only 9% in rural areas. The edible oil sector in India is largely unorganized with a few organized players.
Edible oil is sold in India either in consumer packs (5 lt. and less than 5 lt. pack sizes), bulk packs (15 kg/ lt.) or as loose oil in tankers or barrels.
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Indias Edible Oil Consumption

20 18 16 14 12 10 8 6 4 2 2006 Palm Oil Sunflower Oil 2007 2008 Soybean Oil Groundnut Oil 2009 2010 Mustard Oil Other Oils
Palm Oil has the highest consumption in India ~40% and is almost entirely imported. Mustard oil is the largest domestic oil and constitutes 12% of total consumption. Indias Per capita consumption is assumed to equal current world average of 24.5 kg per person p.a. in next 10 years. Indias total consumption of edible oil is expected to double from current 16 Mn. Mt. to 32 Mn. Mt. by 2020.
COOITs Estimates of India Oilseeds Crop for 2010-11 (Nov. - Oct.)

Figs. in Mn. metric tonnes
Sr. Oilseeds/ Solvent no. Extracted Oils
Oil Recovery %
Oil Seeds
Marketable Surplus For Crushing & Oil Availability

Kharif (Summer) Rabi* (Winter)
Total Total Oil Marketable Availability Surplus
I. 1 2 3 4 5
OILSEEDS Groundnut (in shell) Soybean Rape/Mustard/Toria Sunflower Others SUB TOTAL 40 17 33 35 5.93 9.35 6.42 0.81 2.36 24.87 12.5 65 0.87 8.55 0.10 0.14 1.39 11.05 1.08 6.12 0.67 0.58 8.45 1.95 8.55 6.22 0.81 1.97 19.50 0.78 1.45 2.05 0.28 0.85 5.41
II. 10 11
OTHER OILSEEDS Cottonseed Copra SUB TOTAL 10.23 0.65 10.88 9.73 0.65 10.38 9.73 0.65 10.38 1.17 0.42 1.59 1.36 2.25
III. iv.
SECONDARY SOURCE
(Rice Bran, Oil Cakes and other Minor Oilseeds) BUTTER, as Fat (as per Oilworld)
Grand Total
35.75
21.43
8.45
29.88
10.61
16
* Rabi Season 2009-10
Rapeseed and Soybean growing areas
Mustard/ Rapeseed
Minor growing areas Major growing areas Kota Morena Guna Ratlam Haldia
Soybean
Minor growing areas Major growing areas
Location of KSOs Plants

17 Delivering Health and Prosperity www.ksoils.com
Indias Edible Oil Consumption

Consumption
Consumption in India during Nov.10 to Oct.11 is estimated to be ~18 Mn. MT
Production
The Local Oil production in India as per Trade estimates will be around 8.36 Mn. MT
Imports
India will have to import ~ 9.5 Mn. MT to meet the shortfall and increased demand. The imported oils mainly constitute crude and refined Palm oils from South-East Asia and Soya Degummed oil from South America.
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Imports of Edible & Non-Edible Oil by India

Nov. 08 to Oct. 09 8.18 Mn. MT
7% 12% 14%
Nov. 09 to Oct. 10 8.82 Mn. MT

0% 7% 19%
15%
65%
60%
Soyabean Oil (Degummed)
Crude Palm Oil
Refined Palm Oil
Sun Flower Oil
Soyabean Oil (Degummed)
Crude Palm Oil
Refined Palm Oil
Sunflower Oil
Others
Palm oil imports accounted for ~74% in the last oil year global sourcing at best prices helping Indian edible oil companies fulfil the increased per capita consumption.
Regional Consumer Preferences

Mustard Groundnut Palm Soyaben
north-east, central, north and east west central and south north and central largely consumed in urban India, in relatively small quantity
Sunflower
Strategic Location of KS Oils to address mustard cultivating / consuming belts
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Key Players and Brands: Mustard Edible Oil

Company
K S Oils NDDB Agro Tech Bunge Gokul Refoils Shri Hari Industries Vijay Solvex Adani Wilmar Ruchi Soya
Brand
Double Sher, Kalash, KS Gold Dhara Sudham Dalda Gokul Engine
Remarks
Largest player in the mustard edible oil market (crushing capacity of 4,400 MT/ day) GCMMF (Amul) is the sole selling agent for Dhara and markets this brand through its wide distribution network Refined mustard oil which is marketed in the Eastern market Recently launched refined mustard/soyabean edible oil in Eastern market Capacity of 690 MT/ day for mustard crushing Established brand in Rajasthan Acquired the brand 5 years ago; crushing capacity of 325 MT/day Recent entrant in crude mustard oil (third party manufacturing) Presence in crude and refined mustard oil (third party manufacturing)
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Scooter Fortune Kachi Ghani Mandap and Ruchi Gold
Outlook
The demand for edible oils is expected to increase from current levels of 16.6 million tonnes in 2009 to 22.5 million tonnes by 2015.
-- The Solvent Extractors' Association of India
Particulars
Total Demand (Million Tonnes) Total area under Oil seeds (Million Hectares) Yield (Tonnes/ hectare) Production of Oil seeds (Million Tonnes) Domestic supply of edible oils (Million Tonnes) Total edible oil imports (Million Tonnes) Imports as share of demand
2015
22.5 30 1.3 42 12.5 10 44%
Indias dependence on imports is expected to increase to the extent of ~44% of its consumption requirement. The improvement in yields and the increase in area under cultivation are expected to ensure that domestic oilseed production is sufficient to meet only ~56% of consumption requirement.
Mustard Oil Industry: Mustard Seeds

Mustard Seed
The uniqueness of mustard lies in the fact that it has a very high oil content (~40-42% by weight) and that it is a hardy short duration crop requiring nominal amount of water and fertilizers Mustard seeds have a shelf life of 3-4 years and mustard oil is a natural preservative with antioxidants, which makes it the preferred oil for pickles
Cultivation
Mustard is a winter crop, it requires a temperate climate to prosper. The sowing period in India is during the early Rabi season i.e. October to November The crop starts flowering in the months of December, January and February. The harvesting period is from February to May
Cropping Pattern
Rajasthan (~42%), Uttar Pradesh(~15%), Madhya Pradesh & Chhattisgarh (~14%) contribute 71% of the total Indian production The balance 32% is cultivated in Punjab & Haryana, Gujarat, West Bengal, Assam, Bihar, Hi machal Pradesh & Orissa
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Mustard Oil: The Heart-friendly Oil

Mustard Oil has the least amount of saturated fat as compared to all other edible oils
Comparison of Dietary fats

Mustard Oil Safflower Oil Flaxseed Oil Sunflower Oil Corn Oil Soybean Oil Olive Oil Rice barn Oil Peanut Oil Cottonseed Oil Lard Palm Oil Coconut Oil
7 8 9 12 13 15 15 18 19 27 43 51 91 61 77 16 16 29 23 75 44 48 19 47 39 7 1 8 1 57 1 1 11 1 21 14 18 71 57 54 9 38 33 54 9 10 2
Saturated Fat
Monounsaturated Fat
Polyunsaturated Fat
Alpha-Linolenic Acid Omega 3 Linolenic Acid Omega 6
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Mustard Oil: The Heart-friendly Oil

A study was conducted among 350 cases of heart attack in eight hospitals and 700 normal people in Delhi and Bangalore by a team comprising experts from
All India Institute of Medical Sciences, New Delhi Boston St. Johns Medical College Bangalore
Dr K Srinath Reddy from AIIMS, renowned scientists involved in the study, says
Use of mustard oil was associated with a two-fold lower risk than was use of sunflower or other oils, Similarly, those who use mustard oil for frying foods lower their risk for heart attack by 71 per cent.
The reason for the protective effect of mustard oil is that it is rich in alpha Linolenic acid which is a source of omega-3 polyunsaturated fatty acids, known for giving protection to heart. Alpha Linolenic acid reduces the adhesion-aggregation tendency of blood platelet which should decrease the risk of heart attack.
Published in
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K S Oils Background
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The Company
K S Oils is in the business of manufacturing and marketing of branded crude mustard (rapeseed) oil and refined mustard/other edible oils The Company is the largest processor of rapeseed in India Largest player in the crude mustard oil market Largest exporter of rapeseed deoiled Cake (2009-10) Significant presence in the refined oil market (soyabean/ palm) Other products include vanaspati, Soya deoiled cake, solvent oils, fatty acids and other oils
Estd: 1985
Code: 526209 Listed Since 1994
Code: KSOILS Listed Since 2007
Manufacturing and Distribution Manufacturing facilities are located in Madhya Pradesh, Rajasthan and West Bengal. Strong distribution network with 37 C&F agents, 1,400 Distributors and over 200,000 Retailers.
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The promoters
The Company is part of an old established business house belonging to the Garg family from Morena, Madhya Pradesh dealing in agro based products for the last 150 years Mr. Ramesh Chand Garg
Chairman
Mr. Sourabh Garg

Vice - Chairman
belongs to the fifth generation of the Garg family. has vast experience in business of agriculture commodities, project expansion, sales and distribution
is from the promoter family is actively involved in green field project activation and new infrastructure initiatives also looks after the product expansion initiatives
The Promoters are currently engaged in the edible oils business only
Management Team
Name Designation Profile
He has over 20 years of experience in this sector and is the main driver in the Companys expansion & growth; key person driving backward integration.
Sanjay Agarwal
Managing Director
Sunil Alagh
Head - Marketing Advisory Committee
Ex-CEO of Britannia and one of the most celebrated Marketing Gurus in India. He formulates the Marketing and Brand strategies of the company.
R Ganesh
Executive Director
He has been a strategic advisor to top companies on policy issues. He is in charge of the K S Oils HRD policies.
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Board of Directors
Name Designation Director Profile
He is nominee of Baring Private Equity Asia III Mauritius.
Jimmy Mahtani
Vivek Sett
Director
He is nominee of New Silk Route Advisors.
P K Mandloi
Independent Director
He has extensive experience in the banking sector and guides the Company in financial matters.
Dr. R S Sisodia
Independent Director
He is a Doctorate in agriculture and looks after quality control areas R&D.
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Corporate Social Responsibility

The Garg family are founders of a school teaching 1,200 students from nearby rural areas. A not-for-profit organization, it is the only school in Morena that has high education standards, state of the art computers and recreational facility like horse riding and ample greenery. The Company has been instrumental in promoting local brick industry using Companys coal ash remnants from boiler The Company employs about 3,500 people, directly & indirectly. It supports 50,000 families like farmers supplying their produce and dependent downstream industries like transporters, brick factories, farmers, distributors, etc.
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Awards & Recognition

Business Today 5th Most Investor Friendly Company
Best Value Creator 2008 (small cap)
Oilman of the year
BW REAL 500
Indias most financially sound companies
The Solvent Extractors Association of India
a Premier Association of Vegetable Oil Industry & Trade
Highest Processor
of Rapeseed Oilcake
2004-05 | 2005-06 2006-07 | 2007-08 2008-09 | 2009-10
The Economic Times
ET500
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KS Oils is one of the fastest growing companies in India.
Shareholding Pattern
As on 31st March, 2011
Public 25.38% Promoter 35.01% MFs & FIs 0.86% GDRs 11.72%
Baring Asia & New Silk Route 14.53%
FIIs 12.51%
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K S Oils Operations
Mustard oil (Double Sher & Kalash brands)
Products and Brands
Refined oils (Kalash, KS Refined & KS Gold brands) Vanaspati (KS Gold & KS Gold Plus brands) Sales through C&F Agents and Company Depots
Distribution
North-East and Eastern Region: goods dispatched to branches and depots via. Railway racks and sold directly to Distributors. Facilities located in Madhya Pradesh, Rajasthan & West Bengal Total installed capacity
Manufacturing
Crushing Capacity 4,400 MT/ day Refinery 1,600 MT/ day
Solvent Extraction 4,200 MT/ day Vanaspati 250 MT/ day
Sourcing: mustard seeds from Rajasthan, M.P., U.P. and Delhi

Sourcing
The Company also does bulk sourcing of seeds from NAFED Bulk crude oil is either imported or sourced from Madhya Pradesh and Delhi
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Financial Performance Summary
INR in millions
Margin
35
SWOT Analysis
Largest integrated solvent/ rapeseed crushing capacity in India Established brands in crude mustard oil, refined oil and vanaspati Efficient and flexible manufacturing facilities Captive power production (92 windmills - 78 MW) Loyal customer base Secure raw material supply Extensive distribution network Among the highest margin earners in the Indian Edible Oils sector
Strengths
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Management experience of decades in this business
SWOT Analysis
Ongoing consolidation in the mustard/ domestic oilseed sector and conversion of unorganized (70%) to organized market (30%) Continued growth in the Indian edible oil industry fuelling need for organic growth through greenfield projects to tap other cultivating regions Backward integration (plantations and power generation) and forward integration (value added products for personal care and oleo chemicals)
Opportunity
Currently limited presence in West India and no presence in South India
Weak regulatory environment in India spurious and adulterated oil being available in the market
Threats
37
Competition from substitutes (refined edible oil brands) for KSOLs refined oil products
Weakness
Companys Products and Markets
38
Companys Brands
The Company has established brands with high brand recall in their respective segments: Kalash is the flagship brand for mustard oil well known for purity, pungency and colour
Mustard Oil
(Kalash and Double Sher)
Double Sher has 30% market share in North East India and enjoys a premium over other brands. It has high penetration and acceptance in the rural areas
Refined Oils
(Kalash, KS and KS Gold)
Brand extensions for refined oil with high customer recall for purity
Vanaspati
(KS Gold and KS Gold Plus)
KS and KS Gold are well accepted brands in the refined oil as well as Vanaspati segments.
39
Manufacturing
40
Manufacturing
Strategic Locations
The manufacturing units are located in Morena, Ratlam, Guna in Madhya Pradesh and Kota in Rajasthan and a Port based Refinery in Haldia, West Bengal
Ability to process varied oilseeds and any crude edible oil

The facility is well equipped to switch to processing of any crude edible oil
Integrated Packaging
The operations of the Company are fully integrated with inhouse packaging department which completely meets the Companys requirements of tin, HDPE jars, pouches and PET bottles
Operationally efficient
The integrated nature of the manufacturing units of the Companys divisions is a very important source of KSOLs high profitability. Significant operational efficiencies by reducing power and fuel costs, chemical costs and increasing automation have been achieved
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Manufacturing Factories
One of the most modern and integrated state-of-the-art edible oil manufacturing plants in India
Current Capacity Division Crushing Solvent Extraction Refinery Vanaspati
Total Current Capacity 4,400 MT/day 4,200 MT/day 1,600 MT/day 250 MT/day
42
Manufacturing Integrated Process Flow Chart
43
Mustard Kachchi Ghani (Crude) Oil

Kohllu has been traditionally used in the manufacture of mustard oil; in the process the seeds are broken in open air, during the process certain enzyme is released. This enzyme provides the pungency to the oil. Pungent mustard oil/ Kachchi Ghani is very popular in the northern, eastern and north-eastern states of India The process of extracting oil using only expellers results in high temperatures thus losing its pungency. In the Kohllu process, temperatures are controlled to maintain the pungency and hence, the Kohllu process is critical from consumers need and preference for pungency in mustard oil The process begins with the cleaning of the mustard seeds which are then loaded through conveyor belts in to the Kohllus (cold press crushers)
44
Rapeseed
Mustard Kachchi Ghani (Crude) Oil

The Company has skilled labour trained in the art of manufacturing pungent oil through this method Manufacturing Kachchi Ghani oil from Kohllu is relatively less scalable, thus creating significant entry barriers for new players. 22% oil is obtained in the Kohllu, which is extremely pungent and inedible (pungency factor of ~0.38). The residue oil cake is further processed in the expellers. This results in 13% oil which has pungency of ~0.12. Both the oils obtained (i.e. from Kohllus and the expellers) are blended to obtain the perfect blend of edible oil with pungency of ~0.27 to 0.28 The mustard Oil cake is then fed into solvent extractor via conveyors to extract the remaining oil .
45
Kohllu Cold press crusher for high pungency Mustard Oil
Other facilities
Solvent Extraction
The mustard oil cake in the solvent extractor is sprayed with Hexane, which extracts the remaining 7% oil. Through the distillation method, the hexane is separated completely to yield solvented oil. The deoiled cake is exported as cattle feed to south-east Asia, South Korea & China. The solvented oil is sent for refining This solvent extraction process is used for soyabean seeds as well, from which ~ 18% oil is extracted
Solvent Extractor
Refinery
Refining of oil refers to neutralised, bleached and de-odorised oil. The process is carried out in vacuum at high temperatures
Vanaspati
The process involves hydrogenation of refined oil. Vanaspati obtained is filled into containers and taken for cold room treatment where the temperature is reduced in a controlled manner which facilitates the final finishing required for the grainy texture
46
Other Facilities
Packaging
In-house packaging department completely meets the Company's requirements of tin, HDPE jars, pouches and PET bottles. The equipment includes offset printers, pouch filling machines, tin automatic filling machine and automatic bottle filling plant
Power
Captive Power production capacity of over 92 Windmills (78 MW)
Quality Control (QC) Effluent Treatment

The effluent treatment plant handles the entire effluents of K S Oils. The effluent treated water is completely recycled in-house resulting in zero release of effluents The QC lab does standardization as per AGMARK, V.Q.P and P.F.A. parameters The Company was awarded the ISO 9001:2000 certification for Quality Management Systems for Manufacturing and Supply of Edible Oils
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Markets and Distribution
48
Markets and Distribution

Markets
Companys markets are classified as:
North East region (NE) & East (West Bengal & Bihar) where the Company is the market leader and which contributes ~ 28% of Companys oil revenues; Central & North India - Uttar Pradesh, Madhya Pradesh, Delhi, Rajasthan, Hima chal, Haryana, Punjab and Jammu & Kashmir.
Distribution Network
For each market mentioned, the Company has a distribution network:
For the East and NE Region, goods are transported through railway racks. Kolkata, Guwahati and Dimapur are the major railway arrival points for the Companys goods in this region. The Company has its own depots in these stations. For the rest of India, the Company has set up a network of C&Fs and Depots to cater to Distributors and Wholesalers.
The company has 1,400 Distributors and over 200,000 retailers serviced by the companys 275 member strong marketing team
Historical Financial Performance
50
Historical Profit & Loss Statement

Particulars 2005-06 (A) 6,082 5,290 251 541 2006-07 (A) 10,716 9,073 313 1,330 2007-08 (A) 20,572 16,874 526 3,172 2008-09 (A) 31,782 25,625 633 5,494
INR. Mn.
2009-10 (A) 40,997 33,454 946 6,597
Total Income Less: Raw Materials Manufacturing Exps. Direct Gross Profit Expenditure Selling Expenses Administration Expenses Operating EBITA Depreciation EBIT Interest and Finance Charges PBT Provision for Taxation PAT
138 131 272 29 243 72 172 24 148
238 154 938 45 893 154 739 166 573
499 354 2,319 122 2,197 375 1,822 615 1,207
771 1,102 3,621 268 3,353 743 2,610 916 1,694
884 953 4,760 529 4,231 1,564 2,668 423 2,245

51
Analysis
Companys revenues touched INR 40,00o mn. in FY10, growing over 6 times in last 5 years from INR 6,082 mn. in FY 2006
This growth was on account of high growth in revenues of the Mustard and Refined oils, new capacity additions and geographical expansion into newer markets.
Overall EBITDA increased by 17.5 times from INR 272 mn. in FY 2006 to 4,760 mn. in FY 2010
This leap was driven by increase in sales of branded products and increase in sale of small SKUs.
52
Historical Balance sheet

Particulars+ Sources of Funds: Shareholders Funds Share Capital Equity Share Entitlement Warrants Deferred Government Grants Reserves and Surplus Loan Funds: Secured Loans Unsecured Loans Deferred Tax Liability Mar-06 (A) Mar-07 (A) Mar-08 (A) Mar-09 (A) 85 0 11 373 468 788 86 874 0 221 238 10 1,434 1,903 852 150 1,002 155 332 500 9 6101 6,942 2,847 0 2,847 415 356 0 9 8,707 9,072 9,319 0 9,319 1,051
INR Mn.
Mar-10 (A)
409 713 8 13,395 14,525 14,773 0 14,773 999
Total
Application of Funds Fixed Assets Gross Block Less: Accumulated Depreciation Net Block Capital WIP Investments Current Assets, Loans and Advances Inventories Sundry Debtors Cash and Bank Loans and Advances + Deposits + other Current Assets Total Current Assets Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Misc. Expenditure
1,341
3,060
10,204
19,442
30,297
597 159 438 0
1,378 203 1,175 169
2,904 324 2,580 1,837 185 4,414 1,064 1,496 2,068 9,042 2,826 614 3,440 5,602 0
6,920 589 6,331 3,535 779 9,747 1,208 666 1,905 13,526 3,818 911 4,729 8,797 0
11,738 1,118 10,620 787 1,960 17,174 2,310 1,236 3,795 24,515 6,712 873 7,585 16,930 0
1,552 154 61 57 1,824 875 46 921 903 0
2,477 139 131 454 3,201 1,273 235 1,508 1,693 23
Total
1,341
3,060
10,204
19,442
30,297
53
9 month - FY 11 (Unaudited)
in INR Mn.
Particulars Total Revenue EBIDTA Interest Depreciation PBT Current Tax Deferred Tax Net Profit after Tax
Amount 34,148 4,141 1,598 467 2,075 464 60 1,551
54
Changes in Capital Structure

Particulars Equity Share Capital as on 107,100 forefited shares allotted on reissuance Equity shares allotted on Pref. basis (INR 225 per share) Bonus in Ratio of 1:1 Equity Shares Allotted to CVC at INR180 per share Warrants issued to CVC 1,708,344* & Promoters 2,300,000** at INR 180 per warrant Equity Share Capital as on Shares Split in Ratio of 1:10 Equity Shares Allotted to Baring Pvt. Equity Asia III at INR 41.9 per share Equity Shares Allotted to CVC Trustees at INR 41.9 per share Warrants issued to Promoters 23,866,350*** at INR 41.9 per warrant 30,744,610 equity shares of Re. 1/- each (at INR41.9 per share) underlying the GDR's Issue of USD 31.42 Mn. Warrants converted by Promoters** 19,093,100 equity shares of Re. 1/- each (at INR41.9 per share) underlying the GDR's Issue of USD 20.53 Mn. Warrants converted by CVC* Warrants converted by Promoters*** Equity Shares Allotted to New Silk Route Advisors at INR 48.43 per share 12,409,520 equity shares of Re. 1/- each (at INR 48.43 per share) underlying the GDR's Issue of ~ USD 12.5 Mn to New Silk Route Advisors Warrants issued to Promoters 28,807,339 at INR 54.5 per warrant**** Warrants converted by Promoters**** Warrants converted by Promoters**** 07.09.2007 22.10.2007 08.11.2007 26.03.2008 25.10.2008 01.07.2009 15.07.2009 01.07.2009 29.01.2010 30.12.2010 12,346,002 16,461,337 12,346,002 16,461,337 30,744,610 273,231,600 23,000,000 19,093,100 17,083,440 23,866,350 27,921,406 12,409,520 396,605,416 30,744,610 273,231,600 23,000,000 19,093,100 17,083,440 23,866,350 27,921,406 12,409,520 396,605,416 Date 31.03.2006 12.08.2006 19.08.2006 11.09.2006 23.12.2006 23.12.2006 31.03.2007 25.07.2007 22.08.2007 22.08.2007 22,091,656 220,916,560 21,479,710 90,720 220,916,560 220,916,560 21,479,710 90,720 No. of Equity Shares 8,392,900 107,100 900,000 9,400,000 3,291,656 Amount (INR) 83,929,000 1,071,000 9,000,000 94,000,000 32,916,560
Total issued Equity

31.03.2011
425,412,755
425,412,755
55
**,*** Promoters paid 50% money upfront at the time of subscription of warrants. **** Paid 25% money upfront at the time of subscription of warrants.
Strategy & Growth Initiatives
56
K S Oils Where does it stand today!

Largest rapeseed crushing capacity in India 4,400 MT/day Four times more than the nearest competitor (Gokul Refoils 690 MT/ day) Integrated manufacturing facilities across 5 locations in oilseeds belt. Market leader ~ 12.5% market share of mustard oil market (INR 130 Bn.) 25% share of the organized mustard oil market.
1
Dominant market share in mustard oil in 7 north east states with nearly 30% market share brands include Double Sher and Kalash.
57
Vision
To deliver Health and Prosperity To achieve a turnover of INR 8 bn by 2013 To consolidate market leadership position by achieving 20% market share in mustard oil To accelerate the conversion of the loose unbranded edible oil market to the branded retail market
58
Key Objectives Distribution

extend reach to Tier II and Tier III towns and rural India strengthen existing presence in Central, Northern and Eastern India create distribution network in Western India
brand power and obtain better pricing power
Increase
market share from the current 12.5% to 20% in the Mustard segment proportion of retail packs
Improve utilization levels of its inland oilseeds crushing facilities and port based refinery
Lead in improving yields of rapeseed and soyabean farmers
59
Strategy Way ahead

Crude Oil Production
Plantation Refining
Processing & Products Final Distribution
Farms
Global and Domestic Growth options Backward and Forward integration Secure raw material supply globally & source it from best yield geographies
60
De-risking strategy
Global de-risking strategy for raw material supply - owning palm plantations across the globe
Proof of concept Aug. 2007 364 hect. of palm plantation in Malaysia Fortifying strategy Mar. 2008 20,000 hect. of palm plantation land in Indonesia New acquisitions in 2009 35,500 hect. of palm plantation lands in Indonesia
Self sufficiency by global agri-companies in raw material sourcing will help insulate against short supplies and spiraling prices.
REPORT
61
Indonesia
62
Oil Palm Cycle
63
Nursery
Several factors are taken into consideration when deciding the location of pre-nurseries to grow seedlings, including a nearby source of water, flat land, good drainage and proximity to sources of labor.
On each plantation, the Company intends to build the appropriate infrastructure to bring water sources to seedlings and allow smooth drainage.
64
Immature Plantation
65
Immature Plantation
66
Palm Tree
67
Palm Seed and Fruit
68
Mature Plantation
69
FFB harvesting
70
Thank You
K S Oils Limited
Registered and Corporate Office -
Jiwaji Ganj, Morena 476 001, Madhya Pradesh - India. Phone: +91 7532 300000 Fax: +91 7532 405060 email: investors@ksoils.com
71

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Delivering Health and Prosperity

Delivering Health and Prosperity www.ksoils.com

Code: 526209 Listed Since 1994

Code: KSOILS Listed Since 2007

Delivering Health and Prosperity www.ksoils.com

Strong Distribution network

Key Highlights Indian Edible oil market

Other Edible Oils INR 620 bn.

Key Highlights Advantage K S Oils

Delivering Health and Prosperity www.ksoils.com

Strong Distribution Network

Quality manufacturing facilities

Strong management with decades of experience in agri commodities

Delivering Health and Prosperity www.ksoils.com

Delivering Health and Prosperity www.ksoils.com

World Consumption Pattern

2008-09 : 163.15 Mn. MT

PKO & CNO, 5.80% Other Oils/ Animal Fats, 40.30%

Sunflower Oil, 10.10% Rape Oil, 10.60%

Soya Oil, 19.40% Palm Oil, 13.80%

Palm Oil, 27.4%

Soya Oil, 22.3%

Source: Oilworld (www.oilworld.biz)

2nd largest import bill item for India

Increasing health consciousness

Indian Edible Oil Industry: Overview

Delivering Health and Prosperity www.ksoils.com

India accounts for 8.2% of world oilseeds output (2008-09);

Indian Edible Oil Industry: Overview

Delivering Health and Prosperity www.ksoils.com

Indias Edible Oil Consumption

COOITs Estimates of India Oilseeds Crop for 2010-11 (Nov. - Oct.)

Sr. Oilseeds/ Solvent no. Extracted Oils

Marketable Surplus For Crushing & Oil Availability

Total Total Oil Marketable Availability Surplus

* Rabi Season 2009-10

Rapeseed and Soybean growing areas

Minor growing areas Major growing areas

Location of KSOs Plants

Indias Edible Oil Consumption

Delivering Health and Prosperity www.ksoils.com

Imports of Edible & Non-Edible Oil by India

Nov. 09 to Oct. 10 8.82 Mn. MT

Soyabean Oil (Degummed)

Crude Palm Oil

Refined Palm Oil

Sun Flower Oil

Soyabean Oil (Degummed)

Crude Palm Oil

Refined Palm Oil

Regional Consumer Preferences

Strategic Location of KS Oils to address mustard cultivating / consuming belts

Delivering Health and Prosperity www.ksoils.com

Key Players and Brands: Mustard Edible Oil

Scooter Fortune Kachi Ghani Mandap and Ruchi Gold

Delivering Health and Prosperity www.ksoils.com

Mustard Oil Industry: Mustard Seeds

Mustard Oil: The Heart-friendly Oil

Comparison of Dietary fats

Delivering Health and Prosperity www.ksoils.com

Mustard Oil: The Heart-friendly Oil

Delivering Health and Prosperity www.ksoils.com

Delivering Health and Prosperity www.ksoils.com