Adani Wilmar, Ruchi Soya To Set Up JV For Oils, Grains Business
The new firm will have exclusive right to originate, market and distribute finished products from the various manufacturing businesses of the two partners
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Aiming to create one of India's leading FMCG companies, edible oils major Adani Wilmar and Ruchi Soya on Wednesday agreed to form a JV that will combine their vegetable oil, soya foods and grains businesses.
Adani Wilmar, which sells edible oils under Fortune brand, would hold 66.66 per cent stake in the proposed joint venture company and Ruchi Soya would hold the rest.
Ruchi Soya Industries and Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, have "agreed to combine their respective procurement, marketing, distribution and sales businesses" for specific products, the companies said in separate regulatory filings.
These businesses are: oilseeds and vegetable oils, oilseeds crushing/extractions/refining, derivatives and by-products; soya food, bye-products and all other food products; oleochemicals; biodiesel; grains and castor oils and derivatives.
"The manufacturing requirements of the joint venture company are proposed to be fulfilled by Adani Wilmar and Ruchi Soya," Ruchi Soya said, adding that both companies would also contribute their portfolio of brands in relation to the products mentioned above.
The new firm will have exclusive right to originate, market and distribute finished products from the various manufacturing businesses of the two partners.
"The proposed partnership between Adani Wilmar and Ruchi will have a positive impact on the overall agricultural landscape of India," Adani group Chairman Gautam Adani said.
"Our current partnership with Wilmar has been successful due to a solid combination of Wilmar s strategic outlook and experience in the international food business, coupled with our domestic operational expertise. We look forward to take the next leap forward with the Ruchi family through this new joint venture," he added.
The combined platform is expected to increase efficiencies and rationalise costs across logistics, supply chain management, manpower and distribution by leveraging the existing networks of each organisation, the filing said.
The announcement comes a day after Sebi barred Ruchi Soya Industries from the securities market for alleged fraudulent and manipulative trading in castor seeds at the NCDEX.