Gujarat-based food and edible oils firm Adani Wilmar Ltd has decided to form a partnership with Ruchi Soya to float a joint venture for procurement, marketing, sales and distribution of products such as soy food, oil seeds and biodiesel, as per a stock exchange filing.
A non-binding term sheet has been signed in this regard as per which Adani Wilmar will own a 66.66% stake in the new venture, while the remaining 33.34% will be held by Ruchi Soya.
“The proposed partnership between Adani Wilmar and Ruchi will have a positive impact on the agricultural landscape of India. Our current partnership with Wilmar has been successful due to a combination of Wilmar’s strategic outlook and experience in the international food business and our domestic operational expertise,” said Gautam Adani, chairman of Adani Group.
The JV will hold the right to make, market and distribute certain finished products from the manufacturing businesses of Adani Wilmar and Ruchi Soya in India.
“The joint venture will be positioned to leverage on its strong base in edible oils and become one of India’s leading FMCG companies,” it added.
However, the name of the proposed JV and other details have not been disclosed by the two firms.
The deal is subject to due diligence, definitive binding documentation, and regulatory and other approvals.
Adani Wilmar is a joint venture between Adani Enterprises Ltd (AEL) and Singapore-headquartered agri-commodity giant Wilmar International Ltd.
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