MUMBAI, Apr 29: Ruchi Soya Industries (Ruchi Soya), the leading FMCG player in India announced a Joint Venture (JV) with Kagome, a leading tomato product company of Japan and Mitsui & Co. (Mitsui),one of the world’s largest trading, investment and services companies, to revolutionize the Indian tomato market, estimated to be producing 17 million tons per year.
Ruchi Soya will have 40 percent stake in this JV and rest 60 percent will be held by a special purpose company (SPC) created by
Kagome and Mitsui, who own 66.7 percent and 33.3 percent share each in the SPC, Ruchi Soya said in a statement.
The JV Ruchi Kagome plans to launch premium tomato puree, sauces,ketchup and other world-class products in India. It has identified land in Maharashtra to set up a manufacturing plant, with an initial investment of Rs 44 crore, which is expected to be ready for commercial production by June 2014. Ruchi Kagome will work closely with Indian Farmers to drive a tomato revolution in the country through higher yielding seed, sharing global knowledge to educate local tomato producers & setting up local support centers to handhold farming community in India, Ruchi Soya said in a statement.
Currently, India is second largest producer of tomatoes and also
one of the major importers of processed tomato products. Factors such as lack of awareness about the market, poor harvest management and inefficiencies in the value chain have always been an obstruction for Indian trade. Ruchi Kagome plans to partner with the Indian Farmers to take Indian tomatoes to global standards and enable India to create import substitution, Ruchi Soya said in a statement.
Commenting on the JV, Mr. Dinesh Shahra, Founder and Managing Director, Ruchi Soya said, ‘Ruchi Kagome is all set to tap the rapidly growing FMCG and Processed Foods business in the country. We are planning to launch a range of tomato products, based on world class technology to be provided by Kagome. These products will be marketed in both the Business to Business (Food Services) segment and the Business to Consumer (Retail) segment’. (UNI)
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