Adani Wilmar to form joint venture with Ruchi Soya in India

India-based Adani Wilmar has announced plans to create a joint venture (JV) with Ruchi Soya to cater to the growing domestic demand for food.

Adani Wilmar is a (JV) between Adani Enterprises and Singapore-based palm oil processor Wilmar International, while Ruchi Soya is an edible oil refiner.

Adani Wilmar will hold a 66.66% stake in the JV, while Ruchi Soya will hold the remainder.

The JV will procure, market, sell and distribute products such as grains, oil seeds and soya foods.

In a stock exchange filing, Adani Wilmar stated that a non-binding term agreement with Ruchi Soya has been signed.

Adani Group chairman Gautam Adani was quoted by Live Mint as saying: "The proposed partnership between Adani Wilmar and Ruchi will have a positive impact on the overall agricultural landscape of India.

"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."

The companies have not disclosed how much investment would be poured into the company or the revenue they expect to generate.

The new company will have the sole right to market and distribute some products of Adani Wilmar and Ruchi Soya.

Wilmar chairman and CEO Kuok Khoon Hong was quoted by Live Mint as saying : "The joint venture will be well-positioned to leverage on its strong base in edible oils and capture a good share of this demand to become one of India’s leading FMCG companies."