3F Industries Ltd, an Andhra-Pradesh-based vegetable oil manufacturer, has formed a joint venture with Japanese firm Fuji Oil Co for manufacturing and sales of oil and fat processed foods in India, the company said in a release.
The JV would be named as 3F Fuji Foods Pvt Ltd and will be based at Burgul near Hyderabad. It would be capitalised with investment of Rs 40 crore with the Japanese partner holding 55 per cent stake and remaining 45 per cent will be held by 3F Industries.
The JV will leverage Fuji Oil’s product development and production engineering strengths together with 3F’s sales capability to penetrate the Indian market.
3F Industries (earlier known as Foods Fats & Fertilisers Ltd) manufactures and sells vegetable oil products through its extensive sales network across the country.
Fuji Oil is a leading producer of oils, fats, food ingredients and processed foods, with marketing footprint across the globe.
This is the third such venture where Indian agri firms have formed partnerships with Japanese firms for edible oil business. Mumbai-based Jayant Agro Organics Ltd formed a JV with Mitsui Chemicals and Itoh Oil Chemicals to form a tripartite venture focusing on manufacturing castor oil-based polyols.
In another deal, Indore-headquartered Ruchi Soya, one of India’s largest edible oil companies, said last year it is forming a joint venture with J-Oil Mills, Inc. and Toyota Tsusho Corporation wherein it will spin off its soya processing business, being run at its plant located at Shujalpur in Madhya Pradesh, to the JV.
(Edited by Joby Puthuparampil Johnson)