FMCG company Ruchi Soya Industries today signed an agreement with
Japan’s Kagome and Mitsui to set up a joint venture (JV), RuchiKagome,
to manufacture tomato products in India.
“Currently the total annual demand for processed tomato in the country
is two lakh tonnes. We are planning to launch a range of tomato products
along with Kagome,” Dinesh Shahra, Managing Director and Founder of
Ruchi Soya said.
The company is looking to gain about 20 per cent market share in this segment in the next five years.
Ruchi Soya will have 40 per cent stake in the JV and the rest will be
held by a special purpose company (SPC) created by Kagome and Mitsui.
Kagome and Mitsui own 66.7 per cent and 33.3 per cent stakes
respectively in the SPC.
Ruchi-Kagome will set up a manufacturing unit in Maharashtra with initial
investment of Rs 44 crore and the commercial production will begin from
June 2014, Dinesh Shahra said.
The company is planning to procure tomato directly from the farmers in the western region, he said.
In the first phase, Ruchi-Kagome will target business-to-business model
in markets in and around Mumbai, NCR and Bangalore and is expecting Rs
340-crore revenue, then it would move to the business-to-consumer, he
said.
“We will also look into exporting our products to countries where our JV
is present. However, our initial focus will be on the domestic market,”
he said.
India is the second largest tomato producer in the world with 17 million tonnes production annually after China.
Kagome is a leading tomato product company in Japan and supplies food and beverage products in 50 countries.
Source : http://thehindubusinessline.com
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