Olam International Limited (“Olam”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, announced today that it has sold Taraori Rice Mills Private Limited, the holding company for its rice milling assets in India, to Spanish rice and pasta manufacturer, Ebro Foods, for US$14.5 million.
The basmati rice mill, located in Haryana, India was acquired in 2008 and has a processing capacity of 18 tonnes of paddy per hour.
Rajeev Raina, Global Head of Olam’s Rice business said: “Olam is a global leader in the rice supply chain from Asia to Africa with a strong presence in both the sourcing origins and destination markets, supporting food security in many developing countries. India is an important sourcing origin for us. While the basmati part of the business provided some sourcing synergies, the sales and distribution channel was distinct and separate from the non-basmati rice business.
Furthermore, significant investments in branding were required to grow the franchise. Through this sale we are monetising more than the book value of fixed investments, as well as releasing working capital – which will be used to reinforce our core supply chain and trading business in non-basmati rice from India and other origins for our conventional markets.”
