CHAPTER – I

INTRODUCTION

1.1 MARKETING

Marketing is the process by which companies determine what products or

services may be of interest to customers, and the strategy to use in sales,
communications and business development.[1] It is an integrated process through
which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.

Marketing is used to identify the customer, to keep the customer, and to satisfy the
customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business
management. The evolution of marketing was caused due to mature markets and
overcapacities in the last 2-3 centuries. Companies then shifted the focus from
production to the customer in order to stay profitable.

The term marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired
satisfactions.[2] It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy these
more effectively than competitors.

Marketing is defined by the American Marketing Association (AMA) as "the

activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and
society at large."[3] The term developed from the original meaning which referred
literally to going to a market to buy or sell goods or services. Seen from a systems
point of view, sales process engineering views marketing as "a set of processes
that are interconnected and interdependent with other functions, whose methods
can be improved using a variety of relatively new approaches."

The Chartered Institute of Marketing defines marketing as "the management

process responsible for identifying, anticipating and satisfying customer
requirements profitably." A different concept is the value-based marketing which
states the role of marketing to contribute to increasing shareholder value.[6] In this
context, marketing is defined as "the management process that seeks to maximise
returns to shareholders by developing relationships with valued customers and
creating a competitive advantage."

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because the academic
study of marketing makes extensive use of social sciences, psychology, sociology,
mathematics, economics, anthropology and neuroscience, the profession is now
widely recognized as a science, allowing numerous universities to offer Master-of-
Science (MSc) programmes. The overall process starts with marketing research
and goes through market segmentation, business planning and execution, ending
with pre and post-sales promotional activities. It is also related to many of the
creative arts. The marketing literature is also adept at re-inventing itself and its
vocabulary according to the times and the culture.
1.2 MARKETING SEGMENTATION

Market segmentation is a concept in economics and marketing. A market

segment is a sub-set of a market made up of people or organizations sharing one
or more characteristics that cause them to demand similar product and/or services
based on qualities of those products such as price or function. A true market
segment meets all of the following criteria: it is distinct from other segments
(different segments have different needs), it is homogeneous within the segment
(exhibits common needs); it responds similarly to a market stimulus, and it can be
reached by a market intervention. The term is also used when consumers with
identical product and/or service needs are divided up into groups so they can be
charged different amounts. These can broadly be viewed as 'positive' and 'negative'
applications of the same idea, splitting up the market into smaller groups.

While there may be theoretically 'ideal' market segments, in reality every

organization engaged in a market will develop different ways of imagining market
segments, and create Product differentiation strategies to exploit these segments.
The market segmentation and corresponding product differentiation strategy can
give a firm a temporary commercial advantage.

Market segmenting is dividing the market into groups of individual markets with
similar wants or needs that a company divides the market into distinct groups who
have distinct needs, wants, behavior or who might want different products &
services. Broadly, markets can be divided according to a number of general
criteria, such as by industry or public versus private although industrial market
segmentation is quite different from consumer market segmentation, both have
similar objectives. All of these methods of segmentation are merely proxies for
true segments, which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be performed on a product specific
basis, to provide a close match between specific products and individuals.
However, a number of generic market segment systems also exist, e.g. the Nielsen
Claritas PRIZM system provides a broad segmentation of the population of the
United States based on the statistical analysis of household and geodemographic
data.

The process of segmentation is distinct from targeting (choosing which segments

to address) and positioning (designing an appropriate marketing mix for each
segment). The overall intent is to identify groups of similar customers and
potential customers; to prioritize the groups to address; to understand their
behavior; and to respond with appropriate marketing strategies that satisfy the
different preferences of each chosen segment. Revenues are thus improved.

Improved segmentation can lead to significantly improved marketing

effectiveness. Distinct segments can have different industry structures and thus
have higher or lower attractiveness (Michael Porter). With the right segmentation,
the right lists can be purchased, advertising results can be improved and customer
satisfaction can be increased leading to better reputation.
1.3 MARKETING EFFECTIVENESS

Marketing effectiveness is the quality of how marketers go to market with the

goal of optimizing their spending to achieve good results for both the short-
term and long-term. It is also related to Marketing ROI and Return on
Marketing Investment.

Marketing effectiveness has four dimensions:

• Corporate – Each company operates within different bounds. These are

determined by their size, their budget and their ability to make
organizational change. Within these bounds marketers operate along the
five factors described below.
• Competitive – Each company in a category operates within a similar
framework as described below. In an ideal world, marketers would have
perfect information on how they act as well as how their competitors act. In
reality, in many categories have reasonably good information through
sources, such as, IRI or Nielsen. In many industries, competitive marketing
information is hard to come by.
• Customers/Consumers – Understanding and taking advantage of how
customers make purchasing decisions can help marketers improve their
marketing effectiveness. Groups of consumers act in similar ways leading
to the need to segment them. Based on these segments, they make choices
based on how they value the attributes of a product and the brand, in return
for price paid for the product. Consumers build brand value through
information. Information is received through many sources, such as,
advertising, word-of-mouth and in the (distribution) channel often
characterized with the purchase funnel, a McKinsey & Company concept.
Lastly, consumers consume and make purchase decisions in certain ways.
 • Exogenous Factors – There are many factors outside of our immediate
control that can impact the effectiveness of our marketing activities. These
can include the weather, interest rates, government regulations and many
others. Understanding the impact these factors can have on our consumers
can help us to design programs that can take advantage of these factors or
mitigate the risk of these factors if they take place in the middle of our
marketing campaigns.

There are five factors driving the level of marketing effectiveness that marketers
can achieve:

1. Marketing Strategy – Improving marketing effectiveness can be achieved

by employing a superior marketing strategy. By positioning the product or
brand correctly, the product/brand will be more successful in the market
than competitors’ products/brands. Even with the best strategy, marketers
must execute their programs properly to achieve extraordinary results.
2. Marketing Creative – Even without a change in strategy, better creative
can improve results. Without a change in strategy, AFLAC was able to
achieve stunning results with its introduction of the Duck (AFLAC)
campaign. With the introduction of this new creative concept, the company
growth rate soared from 12% prior to the campaign to 28% following it.
(See references below, Bang)
3. Marketing Execution – By improving how marketers go to market, they
can achieve significantly greater results without changing their strategy or
their creative execution. At the marketing mix level, marketers can improve
their execution by making small changes in any or all of the 4-Ps (Product,
Price, Place and Promotion) (Marketing) without making changes to the
strategic position or the creative execution marketers can improve their
effectiveness and deliver increased revenue. At the program level marketers
can improve their effectiveness by managing and executing each of their
 marketing campaigns better. It's commonly known that consistency of a
Marketing Creative strategy across various media (e.g. TV, Radio, Print
and Online), not just within each individual media message, can amplify
and enhance impact of the overall marketing campaign effort. Additional
examples would be improving direct mail through a better call-to-action or
editing web site content to improve its organic search results, marketers can
improve their marketing effectiveness for each type of program. A growing
area of interest within (Marketing Strategy) and Execution are the more
recent interaction dynamics of traditional marketing (e.g. TV or Events)
with online consumer activity (e.g. Social Media). (See references below,
Brand Ecosystems) Not only direct product experience, but also any
stimulus provided by traditional marketing, can become a catalyst for a
consumer brand "groundswell" online as outlined in the book Groundswell.
4. Marketing Infrastructure (also known as Marketing Management) –
Improving the business of marketing can lead to significant gains for the
company. Management of agencies, budgeting, motivation and
coordination of marketing activities can lead to improved competitiveness
and improved results. The overall accountability for brand leadership and
business results is often reflected in an organization under a title within a
(Brand management) department.
5. Exogenous Factors - Generally out of the control of marketers, external or
exogenous factors also influence how marketers can improve their results.
Taking advantage of seasonality, interests or the regulatory environment
can help marketers improve their marketing effectiveness.
1.4 MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered
around the key concept that customer satisfaction is the main goal.

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and dominance
of a targeted market niche. A marketing strategy combines product development,
promotion, distribution, pricing, relationship management and other elements;
identifies the firm's marketing goals, and explains how they will be achieved,
ideally within a stated timeframe. Marketing strategy determines the choice of
target market segments, positioning, marketing mix, and allocation of resources. It
is most effective when it is an integral component of overall firm strategy,
defining how the organization will successfully engage customers, prospects, and
competitors in the market arena. Corporate strategies, corporate missions, and
corporate goals. As the customer constitutes the source of a company's revenue,
marketing strategy is closely linked with sales. A key component of marketing
strategy is often to keep marketing in line with a company's overarching mission
statement.

Basic theory:

1. Target Audience
2. Proposition/Key Element
3. Implementation
Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing

plan contains a set of specific actions required to successfully implement a
marketing strategy. For example: "Use a low cost product to attract consumers.
Once our organization, via our low cost product, has established a relationship
with consumers, our organization will sell additional, higher-margin products and
services that enhance the consumer's interaction with the low-cost product or
service."

A strategy consists of a well thought out series of tactics to make a marketing plan
more effective. Marketing strategies serve as the fundamental underpinning of
marketing plans designed to fill market needs and reach marketing objectives.
Plans and objectives are generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies,

and action sequences (tactics) into a cohesive whole. Similarly, the various strands
of the strategy , which might include advertising, channel marketing, internet
marketing, promotion and public relations can be orchestrated. Many companies
cascade a strategy throughout an organization, by creating strategy tactics that then
become strategy goals for the next level or group. Each one group is expected to
take that strategy goal and develop a set of tactics to achieve that goal. This is why
it is important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics.
1.5 MARKETING MANAGEMENT

Marketing management is a business discipline which is focused on the practical

application of marketing techniques and the management of a firm's marketing
resources and activities. Rapidly emerging forces of globalization have compelled
firms to market beyond the borders of their home country making International
marketing highly significant and an integral part of a firm's marketing strategy.[1]
Marketing managers are often responsible for influencing the level, timing, and
composition of customer demand accepted definition of the term. In part, this is
because the role of a marketing manager can vary significantly based on a
business' size, corporate culture, and industry context. For example, in a large
consumer products company, the marketing manager may act as the overall
general manager of his or her assigned product To create an effective, cost-
efficient Marketing management strategy, firms must possess a detailed, objective
understanding of their own business and the market in which they operate. In
analyzing these issues, the discipline of marketing management often overlaps
with the related discipline of strategic planning.

Traditionally, marketing analysis was structured into three areas: Customer

analysis, Company analysis, and Competitor analysis (so-called "3Cs" analysis).
More recently, it has become fashionable in some marketing circles to divide these
further into certain five "Cs": Customer analysis, Company analysis, Collaborator
analysis, Competitor analysis, and analysis of the industry Context.

Department analysis is to develop a schematic diagram for market segmentation,

breaking down the market into various constituent groups of customers, which are
called customer segments or market segmentations. Marketing managers work to
develop detailed profiles of each segment, focusing on any number of variables
that may differ among the segments: demographic, psychographic, geographic,
behavioral, needs-benefit, and other factors may all be examined. Marketers also
attempt to track these segments' perceptions of the various products in the market
using tools such as perceptual mapping.

In company analysis, marketers focus on understanding the company's cost

structure and cost position relative to competitors, as well as working to identify a
firm's core competencies and other competitively distinct company resources.
Marketing managers may also work with the accounting department to analyze the
profits the firm is generating from various product lines and customer accounts.
The company may also conduct periodic brand audits to assess the strength of its
brands and sources of brand equity.

The firm's collaborators may also be profiled, which may include various
suppliers, distributors and other channel partners, joint venture partners, and
others. An analysis of complementary products may also be performed if such
products exist.

Marketing management employs various tools from economics and competitive

strategy to analyze the industry context in which the firm operates. These include
Porter's five forces, analysis of strategic groups of competitors, value chain
analysis and others. Depending on the industry, the regulatory context may also be
important to examine in detail.

In Competitor analysis, marketers build detailed profiles of each competitor in the

market, focusing especially on their relative competitive strengths and weaknesses
using SWOT analysis. Marketing managers will examine each competitor's cost
structure, sources of profits, resources and competencies, competitive positioning
and product differentiation, degree of vertical integration, historical responses to
industry developments, and other factors.
Marketing management often finds it necessary to invest in research to collect the
data required to perform accurate marketing analysis. As such, they often conduct
market research (alternately marketing research) to obtain this information.
Marketers employ a variety of techniques to conduct market research, but some of
the more common include:

• Qualitative marketing research, such as focus groups

• Quantitative marketing research, such as statistical surveys
• Experimental techniques such as test markets
• Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning
and competitive intelligence processes to help identify trends and inform the
company's marketing analysis.
 CHAPTER – II
COMPANY PROFILE
2.1 ABOUT KS OILS
“India’s leading integrated edible oil company serving millions of customers with
its trusted brands and health friendly products!”

K S Oils is a leading integrated edible oil company and is the trusted name behind
renowned brands like Kalash, Double Sher, K S Gold, among others. Our
consumer brands and products in mustard oil, soybean oil and palm oil are a
household name with Indian consumers who use our oils regularly as a healthy
cooking medium. A leader in mustard oil in India, K S Oils today enjoys 11%
market share in the overall mustard oil segment with a dominant 25% market
leadership in branded mustard oil.

K S Oils is an Indian company with international footprint and global ambitions; a

leader in the edible oil market in India, it has generated a turnover of over Rs.
3,000 crores during the financial year 2008-09. The company has in the recent past
successfully undertaken the growth strategy of capacity expansion, green field
projects and acquisitions, thus creating an unchallenged competitive advantage.
With secured raw material supply source, ‘near to customer’ sales points and a
robust distribution and dealer network, K S Oils is creating market and brand
leadership.

The company believes in its vision of “Delivering Health & Prosperity”; with its
deep understanding of the mustard oil sector, the company today reaches out to
millions of Indian consumers. It is delivering healthy cooking medium to Indian
homes - ensuring good health and mental & physical prosperity for the whole
family. K S Oils’ relentless focus on quality and hygiene has ensured that “purity”
and “freshness” of mustard and other oils are preserved till it reaches the home of
the consumers in every nook and corner of the country.

K S Oils is a strong family of near to 3000 employees spread over its 6

manufacturing plants, marketing offices and plantations in India, Malaysia,
Indonesia and Singapore. With the company registering explosive growth,
opportunity for fresh and experienced talent is immense with Indian and overseas
opportunities. A strong leadership team comprising of the founders and senior
industry professionals have laid a robust strategy and execution deliverables for
the company, thus “Delivering Health & Prosperity” not only to consumers but
every other stakeholder – employees, shareholders & investors, vendors &
partners and society as a whole.

As one of India’s leading companies in the edible oil sector, K S Oils has deep
understanding of agri-commodity and farmer community issues. Today, K S Oils
is part of the Indian growth story – using the country’s inherent strength in
agricultural resources and best managerial talent to serve millions of consumers in
India and abroad. Creating an Indian MNC with international footprint of
knowledge, leadership and value for its stakeholders across the globe!

Registered & Corporate Office

Address : Jiwajiganj, Morena - 476001 (MP) India.

Phone : +91-7532-300000
Fax : +91-7532-405060 & 300106
Email : mail@ksoils.com
Contact Person : Mr. Naveen Jain
Factory Location

Address : Industrial Area, A-B Road, Morena - 476001 (MP)

India.
Phone : +91-7532-232881 to 884, 304000
Fax : +91-7532-232885 & 304112
Email : ritesh@ksoils.com
Contact Person : Mr. Ritesh Mundra
Cell : +91-9329777552

Branch Office - Delhi

Address : 806 New Delhi House Barakhamba Road, NewDelhi

110001
Phone : +91-11-23762350
Fax : +91-11-23711493
Email : delhi@ksoils.com ysarup@ksoils.com
Contact Person : Mr. Yogendra Sarup
Cell : +91-9810009411

Branch Office - Mumbai

Address : A-311, Everest Grande, Mahakali Caves Road,

Opp. Ahura Centre, Andheri (East),
Mumbai - 400 093, India

Phone : +91 22 42335151 +91 22 26879772

Fax : +91 22 42335155

Email : diana.alva@ksoils.com
Contact Person : Ms. Diana Alva
Cell : +91 93241 14007

Branch Office - Vashi, Mumbai

Address : Room 112, 1st Floor,

Jayant Oil Mill Warehousing Compound,

Plot 48/49, Sector 19A,
Near APMC Market II,
Vashi, Navi Mumbai

Email : nalinesh@ksoils.com
Contact Person : Mr. Nalinesh Jha
Tel : +91 22 27840782 +91 22 27849783
Cell : +91 98200 35546

Branch Office - Guwahati

Address : 7, R K Mour Market, Fancy Bazar, T R Phukan Road

Guwahati - 781001 (Assam) India.
Phone : +91-361-2512364, 2603177
Fax : +91-361-2603191
Contact Person : Mr. Chandra Kamal Bhuiya
Cell : +91-9864025789

Branch Office - Gwalior

Address : Daal Bazar, Lashkar, Gwalior - 474001 (MP) India

Phone : +91-751-2320658 & 2320494
Fax : +91-751-2329262
Contact Person : Mr. Devendra Sharma
Cell : +91-9329732861

Branch Office - Gandhidham

Address : Gopal Bhawan, Plot # 9, Ward # 12-B, Collector Road

Gandhidham - 370201 (Kutch-Gujarat) India.
Phone : +91-2836-234429 & 231720
Fax : +91-2836-231720
Email : akawade@ksoils.com
Contact Person : Mr. Ashok Kawde
Cell : +91-9327147040
2.2 MISSION
K S Oils is a leading Indian integrated edible oil company with a large base of
ever growing consumers. The company has over a period of two decades built a
strong brand reputation and emotional connect with consumers for "Delivering
Health & Prosperity" through its consumer brands and products.

Our single minded mission of "Delivering Health & Prosperity" is driven by our
belief that consumers need the best - pure and unadulterated edible oil as a
cooking and health medium. This ensures that all the health properties of rich
edible oils like mustard, palm and soybean are enjoyed and consumed by families.
A healthy dietary pattern and intake of traditional oils like mustard oil helps in a
healthy mind and body. At K S Oils, we will not do anything which does not result
in "Delivering Health & Prosperity".
Thus, our mission is to ensure that be it people, process and products or investors,
vendors & partners and society as a whole, we will deliver the best value
proposition as per global standards and international benchmarking. Thus
"Delivering Health & Prosperity" in each and every field.

Our Mission of "Delivering Health & Prosperity" is helping us craft our future
strategies for growth - creating better and new products for consumers and
creating a value proposition which ensures that through our actions we deliver our
promise to all our stakeholders. K S Oils is poised to become a true Indian MNC
with pan India presence and operations across the globe.
2.3 BUSINESS
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.
2.4 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.
2.5 BOARD OF DIRECTORS & MANAGEMENT COUNCIL
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.
P. R. Srinivasan

P. R. Srinivasan is the Director at K S Oils. He is the Managing Director of

Citigroup Venture Capital International, Mumbai office. He was previously
employed with HSBC Private Equity (1995-2002) and ICICI Ventures (1992-95).
Before commencing his career in private equity he was employed with Hindustan
Aeronautics Limited (1986-1990). Mr. Srinivasan is an engineering graduate from
the College of Engineering, Guindy, Anna University and a post graduate in
Management from Indian Institute of Management, Bangalore.

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.

Management Team
Himanshu Gandhi Global Head (Business Strategy)
Davesh Agarwal Vice - President (Administration)
Ashwani Garg Vice - President (Commercial)
Yogendra Garg Vice - President (Infrastructure)
Sandeep Taori Vice - President (Taxation)
Praveen Khandelwal Assistant Vice - President (Accounts)
Brijesh Bagpatia Assistant Vice - President (Supply Chain)
Manoj Murarkar Assistant Vice - President (Supply Chain)
Nikhil Mehta Assistant Vice - President (Business Strategy)
Deenanath Bagpatia General Manager (Commercial)
Pradeep Shivhare General Manager (Manufacturing)
Raj Kumar Tambi General Manager (Marketing)
Gali Sriniwas General Manager (Production)
V. K. Mathur General Manager (R&D)
Kalyan Kinkar Sarkar General Manager (Manufacturing)
Naveen Jain Company Secretary
2.6 HISTORY & TIMELINES
Established 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 its way to progress.

Key Milestones
2008: K S Oils journey 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.

2007: Year 2007 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

2006: Year 2006 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 edible oil company in India

2002: A High Density Polythylene Jar manufacturing unit was started to enhance
the packaging system

2001: A Vanaspati Unit with a capacity of 150 Tonnes per day production was set
up and commissioned.

1995: The refining operations of the Company was expanded

1994: The Company goes public. It floats an IPO and gets listed on BSE, MPSE,
JSE and DSE

1992-93: 1992-93 saw the first and major expansion with the building up and
commissioning of its Solvent Extraction Unit

1989: Ventured into Mustard oil with an oil mill of crushing capacity of 150
Tonnes of oil per day.

1985: Birth of K S Oils - a Refinery with a production capacity of 60 Tonnes of oil

per day.
2.7 BRANDS & BUSINESS
Over the past two decades, K S Oils has built, nurtured and continually improved
upon its various brands of edible oils. As a leading FMCG player in India and a
leader in the mustard oil segment, K S brands dominate the market especially in
East and North East India. Recently the Company has forayed into Central and
North India and the consumer response has been encouraging. Today, K S brands
are trusted by millions of consumers and are delighting their palate.

K S brands comprise a range of healthy cooking oil brands in mustard, refined oil
and vanaspati, thus catering to the tastes and preferences of different categories of
consumers. Our emphasis on 'convenience' packaging of our brands ensures that
they meet the needs of consumers at every price point. All our brands have been
developed on the basis of consumer feedback and preferences derived from in-
depth market research. Over the years we have invested significantly in nurturing
these brands in terms of quality, health, packaging and market penetration.

K S has been able to create two very powerful brands in the mustard oil segment, a
very significant achievement as 75% of mustard oil in India is sold loose. The
company’s strict adherence to quality, purity and delivering unadulterated oil to
consumers has won it unstinted loyalty from millions of homemakers who trust K
S Oils products as their cooking oil partner for the whole family. Each brand in the
K S basket has a distinctive positioning catered to address a specific consumer
need. The Company invests significantly in creating brand awareness and
consumer education; from TV commercials to health camps to promotions
informing consumers of the health benefits of its products, the Company has
created strong brand recall and loyalty among every Indian household.
Kalash
Kalash is K S Oil’s flagship premium brand in mustard oil segment. Kalash is
popular among mustard oil consumers, who have the conventional affection to the
rawness and pungency of mustard and believe in having healthy and diet
conscious food. With the medicinal and preservative qualities of mustard kept
intact, Kalash is ideal for massage and pickling purposes.

Kalash is available in the following convenient packs.

♦ Pet bottles
♦ 200 ml, 500 ml, 1 litre
♦ Pet Jars
♦ 2 litre, 5 litre
♦ Pouches
♦ 50 ml, 100 ml, 500 ml, 1 litre
♦ Jerry cans
♦ 2 litre, 5 litre and 15 litre
♦ Tins
♦ 2 litre, 5 litre, 15 litre, 15 Kg

Nutritional value of mustard oil:

♦ Vitamin E (anti oxidant, radiant skin, good for heart)

♦ Natural anti oxidants (slows ageing, prevents illness and diseases)

♦ High amount of mono-unsaturated fatty acids (good for heart)

♦ Good ratio of polyunsaturated fatty acids (good for heart)

Double Sher
Double Sher is a leader in branded mustard oil. For a decade now it has been the
preferred choice of value-seeking mustard oil patrons. A leader in the branded
mustard oil segment in the North-East region, Double Sher caters to the health
conscious consumers. A mass brand for over a decade, it is very popular with the
young generation of consumers.

Double Sher is available in the following convenient packs.

♦ Pet bottles
♦ 200 ml, 500 ml, 1 litre
♦ Pet Jars
♦ 2 litre, 5 litre
♦ Pouches
♦ 50 ml, 100 ml, 500 ml, 1 litre
♦ Jerry cans
♦ 2 litre, 5 litre, 15 litre
♦ Tins
♦ 15 litre, 15 kg

Nutritional value of mustard oil:

♦ Vitamin E (anti oxidant, radiant skin, good for heart)

♦ Natural anti oxidants (slows ageing, prevents illness and diseases)

♦ High amount of mono-unsaturated fatty acids (good for heart)

♦ Good ratio of polyunsaturated fatty acids (good for heart)

Kalash Soya
Kalash Soya, refined soy bean oil brand was introduced by K S Oils as a part of its
continuous endeavor to provide healthy cooking oil choices to Indian consumers.
Kalash Soya preserves the inherent goodness and properties of soy bean to give
consumers light, tasty and healthy edible oil. The great taste along with their
quality to enrich food with Iron, Vitamin B, Calcium and Zinc has won them
consumer loyalty across large parts of India. As these oils are rich in
Polyunsaturated Fatty Acids, they help in keeping cholesterol level under check
and are preferred by health-conscious home makers for their families.

Kalash Soya is available in the following convenient packs.

♦ Pet bottles
♦ 500 ml, 1 litre
♦ Pouches
♦ 500 ml, 1 litre
♦ Jerry cans
♦ 2 litre, 5 litre, 15 litre
♦ Tins
♦ 15 litre, 15 kg

Nutritional value of mustard oil:

♦ Low in saturated fat (good for heart)

♦ Rich in essential fatty acids (good for heath)

♦ Excellent source of vitamin E (anti oxidant, radiant skin, good for heart)
Kalash Sunflower
K S Oils has introduced refined sunflower oil made up of pure seeds of sunflower
for those who likes much pungency and aroma in food. The oil makes food
delicious and also its natural vitamin E provides health benefits. The oil contains
good levels of MUFA and PUFA for healthy heart. Kalash Refined Sunflower oil
is high in the essential vitamin E and low in saturated fat. Sunflower oil is
common cooking oil that has high levels of the essential fatty acids called
polyunsaturated fat good for heart. Sunflower oil of any kind has been shown to
have cardiovascular benefits as well.

Kalash Sunflower is available in the following convenient packs.

♦ Pet bottles
♦ 1 litre
♦ Pouches
♦ 1 litre
♦ Jerry cans
♦ 5 litre, 15 litre
♦ Tins
♦ 15 litre, 15 kg

Nutritional value of mustard oil:

♦ Low in saturated fat (good for heart)

♦ Rich in essential fatty acids (good for heath)

♦ Excellent source of vitamin E (anti oxidant, radiant skin, good for heart)
K S Gold
Introduced over a decade ago, K S Gold is K S Oil's popular brand in vanaspati oil
category. Made by the hydrogenation of excellent quality crude palm oil, the white
granular vanaspati is a multipurpose cooking medium and is also widely used for
making traditional Indian sweets due to its semi-solid consistency. A unique
aspect of K S brand vanaspati is that it is fortified with Vitamin A and E to deliver
health benefits to consumers.

K S Gold is available in the following convenient packs.

♦ Pouches
♦ 200ml, 500 ml, 1 litre
♦ Jerry cans
♦ 2 litre, 5 litre, 15 litre, 15 kg
♦ Tins
♦ 15 litre, 15 kg

The introduction of mini retail packs of 200 ml was in response to the need of
rural consumers. The strategy has paid off as KS Gold Vanaspati have been able to
penetrate deeper into the rural markets.
 CHAPTER – III
REVIEW OF LITERATURE

KS Oils add fresh long positions

K.S. Badri Narayanan

Turnover jumped to Rs 1.08 lakh crore on Monday. The Nifty April futures closed
weak at 5,204.05 against the spot close of 5,203.65 but saw a marginal
accumulation of 0.36 per cent in open interest.

The Nifty May futures closed at 5,207.05 but added just 4.4 per cent in open
interest position. This indicates that traders are not willing to commit themselves.

Among the options 5,200 call added 69.58 per cent and 5,100 put accumulated
17.46 per cent. This indicates that Nifty could move in 5,200-5,100 range.

Stock futures

Today, trading belonged to Jain Irrigation Systems, Allahabad Bank and KS Oils.
Among them KS Oils futures added 17.18 lakh shares (or 23 per cent) in open
position and closed at 69.65 against the spot close of 69.4.

Similarly, Allahabad Bank futures added 5.12 lakh shares or 23 per cent and
closed at 160.85 with respect to the spot close of 160.5. This indicates creation of
fresh long positions in today's trading, presenting a positive view on the stocks.

Tata Steel and Tata Motors witnessed a drop in open position along with fall in
prices. This indicates unwinding of long position.
Bharti Airtel futures finished a tad better at 305.8 but in discount with respect to
the spot close of 306.05. It shed 10 lakh shares or five per cent in open position,
suggesting unwinding of long position.

DLF futures added fresh short positions. It added 2.51 lakh shares (1.93 per cent)
and closed at 316.05 with respect to the spot close of 315.

Unitech futures also witnessed fresh short positions. It closed at 80 against the spot
close of 79.95 and added 11.97 lakh shares or 1.87 per cent.

Another counter that added fresh short was Reliance Industries. The futures
finished at 1,065 with respect to the spot close of 1,060.85 and added 1.58 lakh
shares or 1.38 per cent in open interest position.

FII activity

Overseas investors remained net sellers in the F&O segment on Monday. They
offloaded Rs 147.88-crore worth derivative contracts. Except index options,
foreign investors have offloaded in index, stock futures and stock options.

Thomson Reuters Business Description:

K S Oils Limited is an India-based integrated edible oil company. The Company
operates in three business segments: edible oil, which includes extraction of seed,
refined oil, vanaspati oil, income from commodity hedging transaction
(derivatives), high sea sales and local trading, power generation, which includes
windmill and others, which include agriculture income. The Company’s brands
include Kalash, Double Sher, K S Soya, K S Gold and K S Gold Plus. It has all its
manufacturing plants located in Madhya Pradesh and Rajasthan in India. 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 Company acquired an edible oil
refinery in east India at Haldia port, in February, 2009.
KS Oils to raise Rs. 450 crore

Domestic edible oil manufacturer KS Oils on Tuesday said it would raise Rs. 450
crore through the issue of securities to private equity firms, global depository
receipts (GDR) and promoters funding for expansion in Southeast Asia.

The private equity investor, New Silk Route, would invest Rs. 135 crore for nearly
7 per cent stake, existing investors — Citigroup Ventures Capital International
(CVCI) and Baring Private Equity Asia — would invest Rs. 49 crore each while
promoters would bring in Rs. 157 crore and an additional Rs. 60 crore would be
raised through a GDR issue, according to an official statement issued here.

“KS Oils is on an aggressive growth path and we are happy to see our two current
private equity partners maintain their stake in our company. We welcome New
Silk Route as our new partners,” KS Oils Managing Director Sanjay Agarwal said.

The company said plans to raise funds up to Rs. 450 crore have received a term
sheet commitments of Rs. 390 crore from the three private equity investors and the
promoters.

KS Oils board approves stock split

KS Oils has informed the BSE that the board of directors has approved payment of
a 15 per cent dividend for 2006-07, to increase the authorised share capital to Rs.
40 crore from Rs. 30 crore, to sub-divide equity shares from Rs. 10 per share to
Re. 1 per share and to raise funds via GDRs/FCCBs/equity share/securities,
convertible into equity shares on preferential basis to the extent of Rs. 400 crore,
which includes the promoter contribution of Rs. 100 crore.
Bring Pvt picks up 7.5% in KS Oil

Mumbai, July 16 Singapore-based private equity firm Bring Pvt Equity Asia has
picked up 7.5 per cent stake in BSE-listed KS Oils by investing Rs 90 crore.

The promoter group will pump in Rs 100 crore by subscribing to 23,86,635

warrants convertible into one equity share of Rs 10 each.

The company has also sought board of directors’ approval for raising Rs 90 crore
through GDR (global depository receipt) and Rs 120 crore via FCCB (foreign
currency convertible bonds). The company will issue preferential share to various
trusts for raising Rs 50 lakh. The company will raise a total of Rs 400 crore.

The company will convene extraordinary general meeting on August 8 to

members approval.

KS Oil has chalked out an ambitious expansion plan involving Rs 650 crore
investments, including an investment of Rs 200 crore in wind power generation
and Rs 50 crore in infrastructure.

It is planning three new plants in Madhya Pradesh and two in Rajasthan. Post-
expansion, the company’s oil mill capacity will rise to 4,000 tonnes from 1,250
tonnes, solvent extraction capacity to 3,600 tonnes and oil refinery capacity up to
1000 tonnes, from 300 tonnes.
 CHAPTER – IV

ANALYSIS AND INTERPRETATION

Table – 1

The following table showing the Sales of KS Oils during the year 2004 - 2009

Year Rs. in Lacks

2008 – 2009 314667
2007 – 2008 204389
2006 – 2007 107051
2005 – 2006 60818
2004 – 2005 45246
Chart – 1

The following chart showing the Sales of KS Oils during the year 2004 - 2009
Table – 2

The following table showing the Profit Before Tax of KS Oils during the year
2004 - 2009

Year Rs. in Lacs

2008 – 2009 26091
2007 – 2008 18223
2006 – 2007 7388
2005 – 2006 1760
2004 – 2005 412
Chart – 2

The following chart showing the Profit Before Tax of KS Oils during the year
2004 - 2009
Table – 3

The following table showing the Profit After Tax of KS Oils during the year
2004 - 2009

Year Rs. in Lacs

2008 – 2009 16936
2007 – 2008 12070
2006 – 2007 5732
2005 – 2006 1517
2004 – 2005 336
Table – 3

The following chart showing the Profit After Tax of KS Oils during the year
2004 - 2009
 CHAPTER – V

FINDINGS AND CONCLUSION

5.1 FINDINGS

♦ In order to meet the fund requirement of the company for its Capital
Expenditure for the purpose of setting up of (i) new capacities, (ii) wind
turbines and (iii) warehouses and distribution centers, the company has
come out with preferential allotment of Equity Shares and Warrants to
the promoters and other foreign Investors during the year at an issue
price calculated under SEBI (DIP) Guidelines, 2000 on preferential
basis duly approved by Shareholders and Board of Directors of the
company.
♦ During the year the Company has allotted 2,38,66,350 equity shares of
Re. 1/- each on 25th October, 2008, to promoters upon conversion of
2,38,66,350 promoters warrants after receipt of balance 50% of issue
price amounting to Rs. 5,000 Lacs.
♦ Out of the amount raised by the Company through Preferential
Allotment, the entire unutilized proceeds of Rs. 9,000 Lacs which were
in the form of Fixed Deposit Receipts as at 31st March, 2008 has been
utilized during the year.
♦ GDR Issue: Out of the amount raised by the company through GDR
issued during Financial Year 2007-08, the entire unutilized proceed of
Rs. 3,000 Lacs has been utilized for capital expenditure.
♦ Subsequent Events After the Balance Sheet Date A. In order to meet the
fund requirement, the Company has come out with preferential
allotment of Equity Shares, Warrants to the promoters and foreign
Investors at an issue price calculated under SEBI (DIP) Guidelines,
 2000, for the purpose of expansion of refinery in India along with other
allied expenditure and for investment in its subsidiaries. These overseas
subsidiaries shall use these amounts for development of greenfield palm
plantations and acquisition of matured palm plantations and/ or CPO
mills, all in Indonesia.
♦ On 1st July, 2009 the Company has allotted 2,79,21,406 Equity Shares
of Re. 1/- each to NSR Direct PE Mauritius, LLC and raised Rs.
13,522.30 Lacs.
♦ On 1st July, 2009 the Company has allotted 2,88,07,330 Promoter
Warrants upon receipt of 25% of the Issue price and raised Rs. 3,926.40
Lacs.
♦ The Company has also come out with GDR Issue during July, 2009 to
meet its requirement of expenditure for the purpose of expansion of
refinery in India along with other allied expenditure and for investment
in its subsidiaries. These overseas subsidiaries shall use these amounts
for development of greenfield palm plantations and acquisition of
matured palm plantations and/ or CPO mills, all in Indonesia. The
Company has issued 12,40,952 GDRs on 15th July, 2009 to foreign
investors and raised Rs 6,008.35 Lacs (USD 123.40 Lacs). The GDRs
are listed with Singapore Stock Exchange and each GDR is entitled to
be converted into
♦ To be in conformity with Accounting Standards-26 on “Intangible
Assets” and as per provisions of section 78 of Companies Act, 1956,
“Share issue expenses” (Including GDR/ Private Equity issue expenses)
amounting to Rs. 27.57 Lacs (Previous year-236.90 Lacs) are charged
off against Security Premium Account.
♦ Acquisition of Haldia Plant Company has acquired a refinery plant at
Haldia from Ambo Agro Products Limited (AAPL), vide its Business
transfer agreement dated 22nd November, 2008 for a total consideration
 of Rs 12,500 Lacs, As per the agreement, A unit of Ambo Agro
Products Limited at Haldia has been transferred to K S Oils on “as is
where is” and on.
♦ Agricultural Activity: During the year, Government of Madhya Pradesh
has allotted a land admeasuring 2,000 hectares to the company on a
license basis for no consideration, for carrying out the agricultural
activity for a period of two years, consequently this has not been
recognized as a grant.
♦ Share Swapping: Investment in K S Oils Sdn. Bhd has been transferred
to K S Natural Resources Pte. Ltd. (wholly owned subsidiary of K S
Oils Limited). On account of this disinvestment K S Oils Sdn. Bhd.
became a step down subsidiary company of K S Oils Limited. K S
Natural Resources Pte. Ltd. has issued and allotted 9,86,980 ordinary
shares of SGD 1.00 each, to K S Oils Ltd for acquiring 5,66,300 shares
of MY 1.00 each, of the K S Oils Sdn. Bhd. from K S Oils Ltd. The
Swap ratio was calculated on the basis of intrinsic value of shares of the
respective companies.
♦ Immature Plantations: Immature plantations are not insured against risk
of fire light and other risks. During the year, the expenditure on
immature plantations has not been amortised as the crops are not
available for use.
 5.2 CONCLUSION

In determining earnings per share, the company considers the net profit after tax
and includes the post tax effect of any extra-ordinary/ exceptional item. The
numbers of shares in computing basic earnings per share is the weighted average
numbers of shares outstanding during the period. The numbers of shares used in
computing diluted earnings per share comprises weighted averages shares
considered for deriving basic earnings per share, and also the weighted average
number of equity shares that could have been issued on the conversion of all
dilutive potential equity shares. The diluted potential equity shares are adjusted for
the proceeds receivable, had the shares been actually issued at fair value (i.e. the
average market value of outstanding shares).
 BIBLIOGRAPHY

Book
♦ Annual Report of KS Oils

Website
♦ www.wikipedia.com
♦ www.ksoils.com