SINGAPORE - Adani Wilmar - a joint venture between Wilmar International and Adani Group - and Ruchi Soya Industries, a leading Indian FMCG (fast-moving consumer goods) firm, have proposed to form a new joint venture.
They said in a joint statement on Wednesday (May 25) that the new firm will manage their combined procurement, marketing, sales and distribution businesses for certain products such as grains and oil seeds.
The aim is to cater to increasing domestic food demand, driven by the growing Indian population and rising per capita consumption levels.
Adani and Wilmar, through Adani Wilmar, will hold 66.66 per cent in the joint venture, while Ruchi Soya will hold 33.34 per cent. They have signed a non-binding term sheet.
The statement said the new integrated platform is expected to raise efficient handling of produce and sales realisation.
It will also increase the range of high quality finished products, as "distribution networks will be optimised to provide the highest standards of quality and handling, at the lowest cost possible".