The JV will produce and distribute vegetable oils, soya foods, grains, castor oils, biodiesel and other products and hope to cut costs by bringing together the two companies' procurement, marketing and distribution channels.
Both companies will also contribute to manufacturing support for the JV.
Ruchi Soya, which is India's largest oil refiner, will hold a 33.34 percent share on the JV while edible oils and agribusiness Adani Wilmar will hold a 66.66 percent stake.
Those behind the JV said it will confer benefits on Indian farmers and consumers in terms of pricing and the variety of products made.
Gautam Adani, chairman of Adani Group, said “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".
Kuok Khoon Hong, chairman and CEO of Wilmar, said: “We are very bullish on Indian demand for high quality food products due to population and economic growth. 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."
A name for the JV has not been named yet and it will need to be granted regulatory approval before its fully operational.
Kuok Khoon Hong, chairman and CEO of Wilmar, said: “We are very bullish on Indian demand for high quality food products due to population and economic growth. 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."
A name for the JV has not been named yet and it will need to be granted regulatory approval before its fully operational.
The backdrop to the JV is declining farm productivity in India and rising consumption patterns across the country.
