Shri Venkatesh Refineries Limited

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Case Study

Shri Venkatesh Refineries Limited

Introduction

Shri Venkatesh Refineries Ltd (SVRL) is one of the fastest growing refinery company under Brand name “Rich Soya”. Incorporated in 2003, it specialises in the refining and preservation of edible oils, particularly soya bean and cottonseed oil. The purchase of raw oil, the refining, packaging, and marketing of edible oil are all part of the business process. The company currently has a refining capacity of almost 36,000 tonnes. It is also in the business of trading edible oils, namely soya bean oil, cottonseed oil, and palm oil, in addition to refining edible oil. It has more than 300 distributors across India. 

Problem

Edible oil that is both affordable and of good quality is harder and harder to come by. For any organisation, having experience and a top-notch management team is fundamental. Maintaining constant growth on both the top and bottom lines is crucial, as is meeting working capital requirements.

Solution

Rich Soya has emerged as a leading and well-known brand name in the edible oil sector. It has become a household name for Soya oil and Palm oil in Maharashtra. The presence of an experienced and high-quality management team ensures that the company maintains a good profile. The company’s top and bottom lines have regularly improved over the last three fiscal years. As part of the strategy, the company has dedicated a good amount of energy in building long and sustainable relations with its customers to understand their market needs while keeping them well informed about the market trends and price at regular intervals. 

Outcome

Shri Venkatesh Refineries operates in a high volume/thin margin segment of edible oil refining. The company is listed on the BSE SME platform. In the last three fiscals, SVRL has posted net profits of Rs 227 cr. / Rs 1.26 cr (FY19); Rs 235.52 cr / Rs 2.21 cr (FY20); and, Rs 337 cr / Rs 3.51 cr (FY21). For the last three fiscals, SVRL has reported an average EPS of Rs 3.70 and an average RoNW of 23.38%. 

Innovations

In 2018, the company installed 650 KWH of environmentally friendly solar power panels on its production grounds. The corporation uses the electricity generated at these solar facilities for internal usage.

It has reduced the per month electricity cost of approximately Rs 12 lakh. 

Opportunities

SVRL’s current paid-up equity capital of Rs 8.13 cr. will stand enhanced to Rs 11.06 cr. Based on the IPO pricing, the company is looking for a market cap of Rs 44.24 cr.

SVRL’s goal is to make “Rich Soya” a household name among the various edible oil brands by providing high-quality, healthful edible oil at a reasonable price.

For more information, please contact:
Mr Prasad Dinesh Kabra, Director kabra.prasad1@gmail.com

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