Ruchi Soya Industries, an Indian agri and food company, is exploring an internal corporate restructuring exercise to cut its spending in the face of drastically falling profits.
Approved by the board of directors on 6 September, the company was investigating options including subsidiarising or de-merging its business units into separate businesses, reported Business Standard on 6 September.
The spun-off independent businesses would operate in the edible oil refining and brands, palm plantation, oil seed crushing and renewable energy sectors.
In the first quarter of 2017, Ruchi registered a net loss of 2.86bn rupees (US$44.7M), a dramatic drop from the same period in 2016, when the company turned in 10.3M rupees (USD$160,900) in profits. Net sales also declined by 31.14%.
Ruchi had set up a committee to oversee the planning and execution of the restructuring effort and said it would hire a consultant for proposing a list of options, which would be followed by a “detailed scheme” submitted for board approval.
Ruchi held a leadership position in soya products in India and was one of the country’s largest cooking oil companies.