SlideShare a Scribd company logo
1 of 26
Download to read offline
SOYBEAN INDUSTRY IN INDIA




Ranjan Kotian
Consultant - India
2008
Contents


Soybean – An understanding

Industry Profile

Target Potentiality (Deleted)


Deal Street




                                1
Soybean – An Understanding
Soybean
• The soybean (U.S.) or soya bean (UK) (Glycine
  max) is a species of legume native to East Asia
• A cream-coloured oval bean about the size of a
  common pea
• Soybeans are grown primarily for meal, and oil
  is a secondary product
• During processing, the soybeans are cracked to
  remove the hull and then rolled into full-fat
  flakes. The rolling process disrupts the oil cells,
  facilitating solvent extraction of the oil. After
  the oil has been extracted, the solvent is
  removed, and the flakes are dried, creating
  defatted soy flakes. While most of the defatted
  soy flakes are further processed into soybean
  meal for animal feeding, the flakes can be
  ground to produce soy flour, sized to produce
  soy grits or texturized to produce textured
  vegetable protein (TVP) for food uses.




                                                        3
Origin and Spread of Soyabean
• Soybean production was localized in China until after the Chinese-
  Japanese war of 1894-95, when the Japanese began to import
  soybean oil cake for use as fertilizer
• Europeans had been aware of soybeans as early as 1712 through the
  writing of a German botanist
• Some soybean seed may have been sent from China by missionaries
  as early as 1740 and planted in France
• Shipments of soybeans were made to Europe about 1908, and the
  soybean attracted worldwide attention
• The soybean was a recent introduction to India, probably introduced
  into India from China, Japan and South east Asia via the Naga Hills
  and Manipur, at the far eastern tip of India
• In India Soybean cultivation is introduced in 1977
• Production of soybean in India at the present time is restricted mainly
  to Madhya Pradesh, Uttar Pradesh, Maharashtra and Gujarat
• It is also grown on a small acreage in Himachal Pradesh, Punjab and
  Delhi



                                                                            4
Soybean Value Chain




      Level 1         Level 2                      Level 3

      Green Soybean   Dried & Extracted Soybean    Crushed & Processed Soybean

      Vegetable       Soy Oil, Soy Milk, Soy Dal   Soy Meal, Soy Curd, Soy Flour

                                                                                   5
Soybean – Golden Bean of 20th Century
• Soyfoods are a source of high Quality Protein
• In 1999 The Food & Drug Administration (FDA) announced that food containing soy protein may reduce
  the risk of coronary heart diseases
• Soybean is viewed as alternative HRT [Hormone replacement therapy (menopause)] in large part because
  it is a unique natural source of Isoflavones
• Soy food such as Tofu, Soy Milk, Soy Flour and Soy Nuts have isoflavones contains of about 37 to 180 mg
  per ounce
• Soybeans have favourable nutrient profile for heart health, decreasing negative effect of menopause,
  reduction of cancer, Dibetes, kidney diseases and allergies
• According to FDA, Soy proteins lowers the serum Cholesterol; Soyfood provide high quality protein
  without saturated fat and cholesteroal
• Soy food contains anti-carunogens that have proved to be protective against cancer
• Recent Clinical trials have shown that consumption of soy protein compared to other proteins such as
  from milk or meat can lower total LDL(Low-density lipoprotein) -cholesterol level

   Major constituents of Soybean




                                                                                                        6
Industry Profile
Global Scenario
• Soybean is one of the major oilseed                                                World Soybean Production
  crops in the world




                                          Quantity in Million Tonnes
                                                                       250




                                                                                                                      236.05
• It is cultivated extensively in south




                                                                                                                                    221.62
                                                                                                          220.56
                                                                                             215.72
                                                                       200




                                                                               186.53
  Asian countries and U.S.A.
                                                                       150


                                                                       100


   • Account 57% of total oilseed                                      50


     production in the world                                            0




                                                                             2003-2004




                                                                                           2004-2005




                                                                                                        2005-2006




                                                                                                                    2006-2007




                                                                                                                                (Projection)
                                                                                                                                2007-2008
• 85% of the world’s production is
  crushed for oil                                                                                      Years



   • oil recovery is 17-18%
                                                                       Major Soybean producing Countries
   • the meal forms around 80%
• Major players include:
   •   Ruchi Soya (India)
   •   J-Oil Mills Inc (Japan)
   •   Cargill Inc (Belgium)
   •   Heilongjiang Jiusan (China)
   •   Bunge (US)
   •   Bianchini SA Indústria (Brazil)


                                                                                                                                               8
Global Soybean Crop Calendar




Indian Soybean Crop Calender
• Mainly grown in Kharif season – Monsoon
• Sowing – June – July
• Harvest – October – December



                                            9
Global Supply Demand Estimates
• The global trade of soybean meal is about 48 million tons
• The leading soybean meal producing country is US in the 1st
  place and China, Brazil in the 2nd & 3rd place respectively
• The leading soy meal exporting countries are: -
  •   Argentina (20 million tons)
  •   Brazil (15 million tons)
  •   USA (6 million tons)
  •   India (4 million tons)
  •   European Union (2 million tons)
• The major importers of soybean meal are: -
  •   European Union (22 million tons)
  •   Central Europe (3.5 million tons)
  •   Thailand (2 million tons)
  •   South Korea (1.5 million tons)
  •   Indonesia (1.5 million tons)
  •   Japan (1 million tons)
  •   Philippines (1 million tons)
  •   Canada (1 million tons)
                                                                10
Indian Scenario
• India is 5th largest producer of soybean in the world, with average
  production of 4,809 TMT (Thousand Metric Tonnes) of soybeans
• Average consumption in India is 4,812 TMT of soybeans
• India presently produces about 6 MMT (Million Metric Tonnes) of
  soybean per annum
• Soybean output has more than doubled in the last 10 years
   • is expected to reach a level of 8.6 million tons in 2007-08, making available
     around 6.2 MMT of Soybean Meal with 4 MMT for exports
   • With current international prices as high as US $300+ per MT, exports of
     Indian Soymeal earning close to US$ 1 billion or over Rs.4000 crores
• Uses –
   • Seeds are eaten whole, split & spouted
   • Oil used for paints, linoleum, oil cloth, printing inks, soap, insecticides,
     disinfectants apart from culinary
   • Meal (remnant after oil extraction), Soya Flour, Soya Milk, Soya curd, tofu
     (Soya Paneer)


  There are intellectual property rights (IPR) issues in soybean. Genetically Modified (GM) soybean may not
  be viable for India unless the IPR issues are addressed through appropriate models as in say, Brazil
                                                                                                         11
Soybean Growing Areas in India




 According to a statement from the ministry of agriculture in New Delhi on Friday, the area under
 cultivation for soybean crop increased from 8.7 million hectare in 2007 to 9.5 million hectare this year

                                                                                                            12
Soybean Cultivation & Production in India




                                                                  Source: Multi Commodity Exchange of India Ltd


 Soybean output has more than doubled in the last 10 years and is expected to reach a level of 8.6
 million tons in 2007-08, making available around 6.2 MMT of Soybean Meal with 4 MMT for exports.
 With current international prices as high as US $300+ per MT, this year would well turn into a record year
 of highest ever exports of Indian Soymeal earning close to US$ 1 billion or over Rs.4000 crores.
                                                                                                                  13
India in World Soy Industry
• India is one of the major exporters of soy meal to the Asian countries
• South Korea, Thailand, Philippines, Japan are some of the major
  importers of soy meal from the country
• Soy meal accounted for 84% of the total edible oilseed meal exports
  from the country

                                     India                  World         % Share
           (Rounded figs.)
                                                 (In million tons)
        Annual Seed Production               6                   180          3
         Annual Oil Production               1                   30          3.3
          Annual Oil Imports             1.5                         9      16.7
        Annual Oil Consumption           2.5                     30          8.3
        Annual Meal Production           3.5                     130         3.5
         Annual Meal Exports             2.5                     43          5.8
       Annual Meal Consumption               1                   130         0.7


  Major Concern
  • The industry is exposed to price fluctuations on its major raw material
  • Government policies play an important role in the edible oil and oil seed sector
                                                                                       14
Country wise Trade Profile




                             15
Soy Meal* Export from India
       * Soya bean meal is the residue after oil extraction out of soya seeds




                      (Units in MT)




                                 Source: Multi Commodity Exchange of India Ltd
                                                                                 16
Soybean - Price Movement




              Source: Multi Commodity Exchange of India Ltd




                                                              17
Soy Oil Import into India




                      Source: Multi Commodity Exchange of India Ltd
                                                                      18
Potential of Soy Bean, Soy Oil and Soy Meal
• India, a country with a large population, is experiencing rapid
  income growth
• Approximately 2/3rd of India’s population is vegetarian, much
  of the increase in protein consumption is expected to come
  from a non-meat source
• Consistently rising domestic demand for edible oil in general
  and Soy Oil in particular leading to higher imports
• Higher crush capacity utilization in the industry
• Lower crop estimate but higher demand projection for Soy
  Bean in China
• Increased Soy Meal demand from Far East due to reduced
  crush in China and Japan
• Recovery of domestic and global poultry industry from avian flu
  resulting in revival of demand for feed, thus benefiting Soy
  Meal manufacturers; and
• Rising demand for bio-fuels
                                                                19
Indian Soybean Market – Way Forward
• Indian Soybean market is worth over US$ 1.11 billion or INR 5,000
  crores
• India is an importer of Soy oil but exports Soy meal which is
  considered to be one of the premium soy meals among European and
  Asian countries
• India’s Soy meal exports are expected to cross 50,00,000 tonne mark,
  which is 45 per cent ahead of last season’s (Oct 2007 – Sept 2008),
  estimated at US$ 1.64 billion or INR 7,000 crores
• India export approximately 65% of the total soy meal produced and
  has turned out to be one of the largest exporter of soy meal usually to
  the Asian countries
• Encouraged by the current export trend, the Solvent Exporters
  Association is planning to send a delegation to Cambodia and other
  Far-Eastern nation to further strengthen the hold on the markets there
• Advantages of Indian Soya in world market
   • price advantage as Indian soy meal is still cheaper when compared with the
     American or Brazilian soymeal
   • No other country produces cheaper soy meal than India, which contains
     high protein content of around 48%
   • Only India supplies non-GM soy meal while the U.S., Argentina and Brazil
     manufactures only/ mainly GM soya meal.
                                                                              20
Players in Soybean Industry


                                  Soybean seed
    • Monsanto India
    • Mahyco
    • Eagle Seeds & Biotech




                                Soybean processing
    • Ruchi soya
    • Adani Wilmar
    • Gokul Refoils & Solvent
    • Liberty Oil Mills
    • Vippy Industries
    • Sanwaria Agro
    • Murli Industries
    • Dewas Soya




                                                     21
Deal street
Deals in Soybean industry


                                                                                                DEAL VALUE
   Year                  ACQUIRER                                    Target                     (US $ mn)


                                              Mac Oil Palm Limited (palm oil unit of SICAL
   2007   Ruchi Soya Industries Limited       Logistics Ltd)                                                   7


                                              soya processing,edible oil and vanaspati
                                              businesses of Madhya Pradesh Glychem Industries
   2006   Ruchi Soya Industries Limited       Ltd                                                            N.A.

   2004   Ruchi Soya Industries Limited       Aneja Solvex Pvt Ltd                                           N.A.



   2002   Marico Industries Ltd               Meal Maker brand from Plastomech Ltd                            0.5


                                              Desmet Chemfood Engineering from Extraction De
   1995   Ruchi Soya Industries Limited       Smet NV                                                        N.A.



                             # Only RUCHI SOYA looks to be active in Deal Street




                                                                                                                    23
Sources of Information:

    National Research Centre for Soybean

    Multi Commodity Exchange of India

    Wikipedia

    Company websites

    Newspaper articles

    Company research reports




                                            24
THANK YOU

This material, prepared contains, general information only. This material is not a substitute for such professional advice or services, nor should it be used as
a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your
finances or your business, you should consult a qualified professional adviser. The presenter shall not be responsible for any loss whatsoever sustained by
any person who relies on the content of this material.




                                                                                                                                                                   25

More Related Content

What's hot

#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...
#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...
#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...Solvent Extractors' Association of India
 
PROCESSING OF COCONUT MILK. tejasft
PROCESSING OF COCONUT MILK. tejasftPROCESSING OF COCONUT MILK. tejasft
PROCESSING OF COCONUT MILK. tejasftTEJAS PATEL
 
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower Oil
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower OilRefined Oil Production from Cotton Seed, Ground Nut and Sunflower Oil
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower OilAjjay Kumar Gupta
 
edible oils and their quality aspects
edible oils and their quality aspectsedible oils and their quality aspects
edible oils and their quality aspectsBhagya Vijayan
 
Oilseed Processing for Small-Scale Producers
Oilseed Processing for Small-Scale ProducersOilseed Processing for Small-Scale Producers
Oilseed Processing for Small-Scale ProducersElisaMendelsohn
 
Market Research India - Imported Edible Oils Market in India 2009
Market Research India - Imported Edible Oils Market in India 2009Market Research India - Imported Edible Oils Market in India 2009
Market Research India - Imported Edible Oils Market in India 2009Netscribes, Inc.
 
Vanaspati Ghee- A Industry Analysis
Vanaspati Ghee- A Industry AnalysisVanaspati Ghee- A Industry Analysis
Vanaspati Ghee- A Industry Analysisanjgupta700
 
Sugar industry in india
Sugar industry in indiaSugar industry in india
Sugar industry in indiaRanjan Kotian
 
Trading soybean in commodity market
Trading soybean in commodity marketTrading soybean in commodity market
Trading soybean in commodity marketjesuslovesu
 
Pulses: India and World
Pulses: India and WorldPulses: India and World
Pulses: India and WorldAnand Thokal
 
Mustard Oil Processing , Food Products Technology #oilseed
Mustard Oil Processing , Food Products Technology #oilseedMustard Oil Processing , Food Products Technology #oilseed
Mustard Oil Processing , Food Products Technology #oilseedASWINKMANOJKattipara
 
Sunflower oil extraction process
Sunflower oil extraction processSunflower oil extraction process
Sunflower oil extraction processPrakash Raj
 

What's hot (20)

#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...
#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...
#63 Dr B.V. MEHTA Paper Presentation on "Demand and Supply of Edible Oils in ...
 
PROCESSING OF COCONUT MILK. tejasft
PROCESSING OF COCONUT MILK. tejasftPROCESSING OF COCONUT MILK. tejasft
PROCESSING OF COCONUT MILK. tejasft
 
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower Oil
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower OilRefined Oil Production from Cotton Seed, Ground Nut and Sunflower Oil
Refined Oil Production from Cotton Seed, Ground Nut and Sunflower Oil
 
edible oils and their quality aspects
edible oils and their quality aspectsedible oils and their quality aspects
edible oils and their quality aspects
 
Soybean and soy products
Soybean and soy productsSoybean and soy products
Soybean and soy products
 
Oilseed Processing for Small-Scale Producers
Oilseed Processing for Small-Scale ProducersOilseed Processing for Small-Scale Producers
Oilseed Processing for Small-Scale Producers
 
Market Research India - Imported Edible Oils Market in India 2009
Market Research India - Imported Edible Oils Market in India 2009Market Research India - Imported Edible Oils Market in India 2009
Market Research India - Imported Edible Oils Market in India 2009
 
Vanaspati Ghee- A Industry Analysis
Vanaspati Ghee- A Industry AnalysisVanaspati Ghee- A Industry Analysis
Vanaspati Ghee- A Industry Analysis
 
By Products of Cocoa
By Products of CocoaBy Products of Cocoa
By Products of Cocoa
 
Soybean Processing Technologies
Soybean Processing TechnologiesSoybean Processing Technologies
Soybean Processing Technologies
 
Sugar industry in india
Sugar industry in indiaSugar industry in india
Sugar industry in india
 
Soyabean ppt
Soyabean pptSoyabean ppt
Soyabean ppt
 
Soya bean Commodity
Soya bean CommoditySoya bean Commodity
Soya bean Commodity
 
Extraction of oil
Extraction of oilExtraction of oil
Extraction of oil
 
Trading soybean in commodity market
Trading soybean in commodity marketTrading soybean in commodity market
Trading soybean in commodity market
 
Apeda
ApedaApeda
Apeda
 
Pulses: India and World
Pulses: India and WorldPulses: India and World
Pulses: India and World
 
Mustard Oil Processing , Food Products Technology #oilseed
Mustard Oil Processing , Food Products Technology #oilseedMustard Oil Processing , Food Products Technology #oilseed
Mustard Oil Processing , Food Products Technology #oilseed
 
Citrus by products
Citrus by productsCitrus by products
Citrus by products
 
Sunflower oil extraction process
Sunflower oil extraction processSunflower oil extraction process
Sunflower oil extraction process
 

Viewers also liked

Market Research on Soya milk
Market Research on Soya milkMarket Research on Soya milk
Market Research on Soya milkAzas Shahrier
 
SoyaMilk Marketing presentation
SoyaMilk Marketing presentationSoyaMilk Marketing presentation
SoyaMilk Marketing presentationArkadip Gupta
 
Oil refinery(degumming process)
Oil refinery(degumming process)Oil refinery(degumming process)
Oil refinery(degumming process)Izyan Hanis
 
Refining process of fat and oil
Refining process of fat and oilRefining process of fat and oil
Refining process of fat and oilArmia Naguib
 
Edible oil refining
Edible oil refiningEdible oil refining
Edible oil refiningEhsan Moradi
 

Viewers also liked (6)

Market Research on Soya milk
Market Research on Soya milkMarket Research on Soya milk
Market Research on Soya milk
 
SoyaMilk Marketing presentation
SoyaMilk Marketing presentationSoyaMilk Marketing presentation
SoyaMilk Marketing presentation
 
Oil refinery(degumming process)
Oil refinery(degumming process)Oil refinery(degumming process)
Oil refinery(degumming process)
 
Bleaching of oil
Bleaching of oilBleaching of oil
Bleaching of oil
 
Refining process of fat and oil
Refining process of fat and oilRefining process of fat and oil
Refining process of fat and oil
 
Edible oil refining
Edible oil refiningEdible oil refining
Edible oil refining
 

Similar to Soybean Industry In India.Ppt

New microsoft power point presentation
New microsoft power point presentationNew microsoft power point presentation
New microsoft power point presentationPriyanka Kulkarni
 
Vippy Industries Limited - PPT Updated 2015 - June
Vippy Industries Limited - PPT Updated 2015 - JuneVippy Industries Limited - PPT Updated 2015 - June
Vippy Industries Limited - PPT Updated 2015 - JuneVippy Soya
 
Nutritional and antinutritional aspects of soybean
Nutritional and antinutritional aspects of soybeanNutritional and antinutritional aspects of soybean
Nutritional and antinutritional aspects of soybeanDr. sreeremya S
 
Soyfoods: Adding Value to Soybeans
Soyfoods: Adding Value to SoybeansSoyfoods: Adding Value to Soybeans
Soyfoods: Adding Value to SoybeansElisaMendelsohn
 
Environmental scanning report.pptx
Environmental scanning report.pptxEnvironmental scanning report.pptx
Environmental scanning report.pptxMehakpreet Singh
 
Raindrops Bamati Rice - Way of Working
Raindrops Bamati Rice - Way of WorkingRaindrops Bamati Rice - Way of Working
Raindrops Bamati Rice - Way of WorkingTarun Jangid
 
CATTLE FEED ppt.pptx
CATTLE FEED ppt.pptxCATTLE FEED ppt.pptx
CATTLE FEED ppt.pptxThiviKutty
 
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn Belt
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn BeltDr. Emerson Nafziger - Why We Grow Soybeans In The Corn Belt
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn BeltJohn Blue
 
Value addition on soybean
Value addition on soybeanValue addition on soybean
Value addition on soybeanSurajPanpatte1
 
Indian agriculture
Indian agricultureIndian agriculture
Indian agriculturekanishk102
 
Exports of Agricultural Commodities
 Exports of Agricultural Commodities Exports of Agricultural Commodities
Exports of Agricultural CommoditiesVaishnaviAegis
 
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...NCDEX Ltd.
 
Tajikistan oilseeds market study 2011_Ian Luyt_Novirost
Tajikistan oilseeds market study 2011_Ian Luyt_NovirostTajikistan oilseeds market study 2011_Ian Luyt_Novirost
Tajikistan oilseeds market study 2011_Ian Luyt_NovirostNOVIROST Limited
 
Asia Commodities Trading
Asia Commodities TradingAsia Commodities Trading
Asia Commodities Tradingsale89
 
Biodiesel Production for On-Farm Use: A curriculum for agricultural producers
Biodiesel Production for On-Farm Use: A curriculum for agricultural producersBiodiesel Production for On-Farm Use: A curriculum for agricultural producers
Biodiesel Production for On-Farm Use: A curriculum for agricultural producersElisaMendelsohn
 
Status and economy of cereal processing in india
Status and economy of cereal processing in indiaStatus and economy of cereal processing in india
Status and economy of cereal processing in indiaShivaniThakur103
 
Satyadhir soya export ppt
Satyadhir soya export pptSatyadhir soya export ppt
Satyadhir soya export pptSatyadhir Dubey
 

Similar to Soybean Industry In India.Ppt (20)

future market comodity
future market comodityfuture market comodity
future market comodity
 
New microsoft power point presentation
New microsoft power point presentationNew microsoft power point presentation
New microsoft power point presentation
 
Vippy Industries Limited - PPT Updated 2015 - June
Vippy Industries Limited - PPT Updated 2015 - JuneVippy Industries Limited - PPT Updated 2015 - June
Vippy Industries Limited - PPT Updated 2015 - June
 
Nutritional and antinutritional aspects of soybean
Nutritional and antinutritional aspects of soybeanNutritional and antinutritional aspects of soybean
Nutritional and antinutritional aspects of soybean
 
Soyfoods: Adding Value to Soybeans
Soyfoods: Adding Value to SoybeansSoyfoods: Adding Value to Soybeans
Soyfoods: Adding Value to Soybeans
 
Environmental scanning report.pptx
Environmental scanning report.pptxEnvironmental scanning report.pptx
Environmental scanning report.pptx
 
Raindrops Bamati Rice - Way of Working
Raindrops Bamati Rice - Way of WorkingRaindrops Bamati Rice - Way of Working
Raindrops Bamati Rice - Way of Working
 
CATTLE FEED ppt.pptx
CATTLE FEED ppt.pptxCATTLE FEED ppt.pptx
CATTLE FEED ppt.pptx
 
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn Belt
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn BeltDr. Emerson Nafziger - Why We Grow Soybeans In The Corn Belt
Dr. Emerson Nafziger - Why We Grow Soybeans In The Corn Belt
 
Value addition on soybean
Value addition on soybeanValue addition on soybean
Value addition on soybean
 
Dairy industry
Dairy industryDairy industry
Dairy industry
 
Indian agriculture
Indian agricultureIndian agriculture
Indian agriculture
 
Exports of Agricultural Commodities
 Exports of Agricultural Commodities Exports of Agricultural Commodities
Exports of Agricultural Commodities
 
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...
India Maize Summit 2015 - Session 1 - Sharad khurana, Pioneer, Indian Dairy I...
 
Tajikistan oilseeds market study 2011_Ian Luyt_Novirost
Tajikistan oilseeds market study 2011_Ian Luyt_NovirostTajikistan oilseeds market study 2011_Ian Luyt_Novirost
Tajikistan oilseeds market study 2011_Ian Luyt_Novirost
 
Biofuels.pptx
Biofuels.pptxBiofuels.pptx
Biofuels.pptx
 
Asia Commodities Trading
Asia Commodities TradingAsia Commodities Trading
Asia Commodities Trading
 
Biodiesel Production for On-Farm Use: A curriculum for agricultural producers
Biodiesel Production for On-Farm Use: A curriculum for agricultural producersBiodiesel Production for On-Farm Use: A curriculum for agricultural producers
Biodiesel Production for On-Farm Use: A curriculum for agricultural producers
 
Status and economy of cereal processing in india
Status and economy of cereal processing in indiaStatus and economy of cereal processing in india
Status and economy of cereal processing in india
 
Satyadhir soya export ppt
Satyadhir soya export pptSatyadhir soya export ppt
Satyadhir soya export ppt
 

Recently uploaded

Babel Compiler - Transforming JavaScript for All Browsers.pptx
Babel Compiler - Transforming JavaScript for All Browsers.pptxBabel Compiler - Transforming JavaScript for All Browsers.pptx
Babel Compiler - Transforming JavaScript for All Browsers.pptxYounusS2
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxMatsuo Lab
 
GenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncGenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncObject Automation
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesDavid Newbury
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyes
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyesHow to Effectively Monitor SD-WAN and SASE Environments with ThousandEyes
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyesThousandEyes
 
RAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIRAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIUdaiappa Ramachandran
 
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCost
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCostKubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCost
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCostMatt Ray
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
Introduction to Quantum Computing
Introduction to Quantum ComputingIntroduction to Quantum Computing
Introduction to Quantum ComputingGDSC PJATK
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UbiTrack UK
 
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdfJamie (Taka) Wang
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaborationbruanjhuli
 
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataCloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataSafe Software
 

Recently uploaded (20)

Babel Compiler - Transforming JavaScript for All Browsers.pptx
Babel Compiler - Transforming JavaScript for All Browsers.pptxBabel Compiler - Transforming JavaScript for All Browsers.pptx
Babel Compiler - Transforming JavaScript for All Browsers.pptx
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptx
 
GenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation IncGenAI and AI GCC State of AI_Object Automation Inc
GenAI and AI GCC State of AI_Object Automation Inc
 
Linked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond OntologiesLinked Data in Production: Moving Beyond Ontologies
Linked Data in Production: Moving Beyond Ontologies
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyes
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyesHow to Effectively Monitor SD-WAN and SASE Environments with ThousandEyes
How to Effectively Monitor SD-WAN and SASE Environments with ThousandEyes
 
RAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AIRAG Patterns and Vector Search in Generative AI
RAG Patterns and Vector Search in Generative AI
 
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCost
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCostKubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCost
KubeConEU24-Monitoring Kubernetes and Cloud Spend with OpenCost
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
Introduction to Quantum Computing
Introduction to Quantum ComputingIntroduction to Quantum Computing
Introduction to Quantum Computing
 
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
UWB Technology for Enhanced Indoor and Outdoor Positioning in Physiological M...
 
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf
20200723_insight_release_plan_v6.pdf20200723_insight_release_plan_v6.pdf
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online CollaborationCOMPUTER 10: Lesson 7 - File Storage and Online Collaboration
COMPUTER 10: Lesson 7 - File Storage and Online Collaboration
 
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial DataCloud Revolution: Exploring the New Wave of Serverless Spatial Data
Cloud Revolution: Exploring the New Wave of Serverless Spatial Data
 

Soybean Industry In India.Ppt

  • 1. SOYBEAN INDUSTRY IN INDIA Ranjan Kotian Consultant - India 2008
  • 2. Contents Soybean – An understanding Industry Profile Target Potentiality (Deleted) Deal Street 1
  • 3. Soybean – An Understanding
  • 4. Soybean • The soybean (U.S.) or soya bean (UK) (Glycine max) is a species of legume native to East Asia • A cream-coloured oval bean about the size of a common pea • Soybeans are grown primarily for meal, and oil is a secondary product • During processing, the soybeans are cracked to remove the hull and then rolled into full-fat flakes. The rolling process disrupts the oil cells, facilitating solvent extraction of the oil. After the oil has been extracted, the solvent is removed, and the flakes are dried, creating defatted soy flakes. While most of the defatted soy flakes are further processed into soybean meal for animal feeding, the flakes can be ground to produce soy flour, sized to produce soy grits or texturized to produce textured vegetable protein (TVP) for food uses. 3
  • 5. Origin and Spread of Soyabean • Soybean production was localized in China until after the Chinese- Japanese war of 1894-95, when the Japanese began to import soybean oil cake for use as fertilizer • Europeans had been aware of soybeans as early as 1712 through the writing of a German botanist • Some soybean seed may have been sent from China by missionaries as early as 1740 and planted in France • Shipments of soybeans were made to Europe about 1908, and the soybean attracted worldwide attention • The soybean was a recent introduction to India, probably introduced into India from China, Japan and South east Asia via the Naga Hills and Manipur, at the far eastern tip of India • In India Soybean cultivation is introduced in 1977 • Production of soybean in India at the present time is restricted mainly to Madhya Pradesh, Uttar Pradesh, Maharashtra and Gujarat • It is also grown on a small acreage in Himachal Pradesh, Punjab and Delhi 4
  • 6. Soybean Value Chain Level 1 Level 2 Level 3 Green Soybean Dried & Extracted Soybean Crushed & Processed Soybean Vegetable Soy Oil, Soy Milk, Soy Dal Soy Meal, Soy Curd, Soy Flour 5
  • 7. Soybean – Golden Bean of 20th Century • Soyfoods are a source of high Quality Protein • In 1999 The Food & Drug Administration (FDA) announced that food containing soy protein may reduce the risk of coronary heart diseases • Soybean is viewed as alternative HRT [Hormone replacement therapy (menopause)] in large part because it is a unique natural source of Isoflavones • Soy food such as Tofu, Soy Milk, Soy Flour and Soy Nuts have isoflavones contains of about 37 to 180 mg per ounce • Soybeans have favourable nutrient profile for heart health, decreasing negative effect of menopause, reduction of cancer, Dibetes, kidney diseases and allergies • According to FDA, Soy proteins lowers the serum Cholesterol; Soyfood provide high quality protein without saturated fat and cholesteroal • Soy food contains anti-carunogens that have proved to be protective against cancer • Recent Clinical trials have shown that consumption of soy protein compared to other proteins such as from milk or meat can lower total LDL(Low-density lipoprotein) -cholesterol level Major constituents of Soybean 6
  • 9. Global Scenario • Soybean is one of the major oilseed World Soybean Production crops in the world Quantity in Million Tonnes 250 236.05 • It is cultivated extensively in south 221.62 220.56 215.72 200 186.53 Asian countries and U.S.A. 150 100 • Account 57% of total oilseed 50 production in the world 0 2003-2004 2004-2005 2005-2006 2006-2007 (Projection) 2007-2008 • 85% of the world’s production is crushed for oil Years • oil recovery is 17-18% Major Soybean producing Countries • the meal forms around 80% • Major players include: • Ruchi Soya (India) • J-Oil Mills Inc (Japan) • Cargill Inc (Belgium) • Heilongjiang Jiusan (China) • Bunge (US) • Bianchini SA Indústria (Brazil) 8
  • 10. Global Soybean Crop Calendar Indian Soybean Crop Calender • Mainly grown in Kharif season – Monsoon • Sowing – June – July • Harvest – October – December 9
  • 11. Global Supply Demand Estimates • The global trade of soybean meal is about 48 million tons • The leading soybean meal producing country is US in the 1st place and China, Brazil in the 2nd & 3rd place respectively • The leading soy meal exporting countries are: - • Argentina (20 million tons) • Brazil (15 million tons) • USA (6 million tons) • India (4 million tons) • European Union (2 million tons) • The major importers of soybean meal are: - • European Union (22 million tons) • Central Europe (3.5 million tons) • Thailand (2 million tons) • South Korea (1.5 million tons) • Indonesia (1.5 million tons) • Japan (1 million tons) • Philippines (1 million tons) • Canada (1 million tons) 10
  • 12. Indian Scenario • India is 5th largest producer of soybean in the world, with average production of 4,809 TMT (Thousand Metric Tonnes) of soybeans • Average consumption in India is 4,812 TMT of soybeans • India presently produces about 6 MMT (Million Metric Tonnes) of soybean per annum • Soybean output has more than doubled in the last 10 years • is expected to reach a level of 8.6 million tons in 2007-08, making available around 6.2 MMT of Soybean Meal with 4 MMT for exports • With current international prices as high as US $300+ per MT, exports of Indian Soymeal earning close to US$ 1 billion or over Rs.4000 crores • Uses – • Seeds are eaten whole, split & spouted • Oil used for paints, linoleum, oil cloth, printing inks, soap, insecticides, disinfectants apart from culinary • Meal (remnant after oil extraction), Soya Flour, Soya Milk, Soya curd, tofu (Soya Paneer) There are intellectual property rights (IPR) issues in soybean. Genetically Modified (GM) soybean may not be viable for India unless the IPR issues are addressed through appropriate models as in say, Brazil 11
  • 13. Soybean Growing Areas in India According to a statement from the ministry of agriculture in New Delhi on Friday, the area under cultivation for soybean crop increased from 8.7 million hectare in 2007 to 9.5 million hectare this year 12
  • 14. Soybean Cultivation & Production in India Source: Multi Commodity Exchange of India Ltd Soybean output has more than doubled in the last 10 years and is expected to reach a level of 8.6 million tons in 2007-08, making available around 6.2 MMT of Soybean Meal with 4 MMT for exports. With current international prices as high as US $300+ per MT, this year would well turn into a record year of highest ever exports of Indian Soymeal earning close to US$ 1 billion or over Rs.4000 crores. 13
  • 15. India in World Soy Industry • India is one of the major exporters of soy meal to the Asian countries • South Korea, Thailand, Philippines, Japan are some of the major importers of soy meal from the country • Soy meal accounted for 84% of the total edible oilseed meal exports from the country India World % Share (Rounded figs.) (In million tons) Annual Seed Production 6 180 3 Annual Oil Production 1 30 3.3 Annual Oil Imports 1.5 9 16.7 Annual Oil Consumption 2.5 30 8.3 Annual Meal Production 3.5 130 3.5 Annual Meal Exports 2.5 43 5.8 Annual Meal Consumption 1 130 0.7 Major Concern • The industry is exposed to price fluctuations on its major raw material • Government policies play an important role in the edible oil and oil seed sector 14
  • 16. Country wise Trade Profile 15
  • 17. Soy Meal* Export from India * Soya bean meal is the residue after oil extraction out of soya seeds (Units in MT) Source: Multi Commodity Exchange of India Ltd 16
  • 18. Soybean - Price Movement Source: Multi Commodity Exchange of India Ltd 17
  • 19. Soy Oil Import into India Source: Multi Commodity Exchange of India Ltd 18
  • 20. Potential of Soy Bean, Soy Oil and Soy Meal • India, a country with a large population, is experiencing rapid income growth • Approximately 2/3rd of India’s population is vegetarian, much of the increase in protein consumption is expected to come from a non-meat source • Consistently rising domestic demand for edible oil in general and Soy Oil in particular leading to higher imports • Higher crush capacity utilization in the industry • Lower crop estimate but higher demand projection for Soy Bean in China • Increased Soy Meal demand from Far East due to reduced crush in China and Japan • Recovery of domestic and global poultry industry from avian flu resulting in revival of demand for feed, thus benefiting Soy Meal manufacturers; and • Rising demand for bio-fuels 19
  • 21. Indian Soybean Market – Way Forward • Indian Soybean market is worth over US$ 1.11 billion or INR 5,000 crores • India is an importer of Soy oil but exports Soy meal which is considered to be one of the premium soy meals among European and Asian countries • India’s Soy meal exports are expected to cross 50,00,000 tonne mark, which is 45 per cent ahead of last season’s (Oct 2007 – Sept 2008), estimated at US$ 1.64 billion or INR 7,000 crores • India export approximately 65% of the total soy meal produced and has turned out to be one of the largest exporter of soy meal usually to the Asian countries • Encouraged by the current export trend, the Solvent Exporters Association is planning to send a delegation to Cambodia and other Far-Eastern nation to further strengthen the hold on the markets there • Advantages of Indian Soya in world market • price advantage as Indian soy meal is still cheaper when compared with the American or Brazilian soymeal • No other country produces cheaper soy meal than India, which contains high protein content of around 48% • Only India supplies non-GM soy meal while the U.S., Argentina and Brazil manufactures only/ mainly GM soya meal. 20
  • 22. Players in Soybean Industry Soybean seed • Monsanto India • Mahyco • Eagle Seeds & Biotech Soybean processing • Ruchi soya • Adani Wilmar • Gokul Refoils & Solvent • Liberty Oil Mills • Vippy Industries • Sanwaria Agro • Murli Industries • Dewas Soya 21
  • 24. Deals in Soybean industry DEAL VALUE Year ACQUIRER Target (US $ mn) Mac Oil Palm Limited (palm oil unit of SICAL 2007 Ruchi Soya Industries Limited Logistics Ltd) 7 soya processing,edible oil and vanaspati businesses of Madhya Pradesh Glychem Industries 2006 Ruchi Soya Industries Limited Ltd N.A. 2004 Ruchi Soya Industries Limited Aneja Solvex Pvt Ltd N.A. 2002 Marico Industries Ltd Meal Maker brand from Plastomech Ltd 0.5 Desmet Chemfood Engineering from Extraction De 1995 Ruchi Soya Industries Limited Smet NV N.A. # Only RUCHI SOYA looks to be active in Deal Street 23
  • 25. Sources of Information:  National Research Centre for Soybean  Multi Commodity Exchange of India  Wikipedia  Company websites  Newspaper articles  Company research reports 24
  • 26. THANK YOU This material, prepared contains, general information only. This material is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. The presenter shall not be responsible for any loss whatsoever sustained by any person who relies on the content of this material. 25