Ruchi Soya and Adani Wilmar Propose to Join Hands

By 121 News

Chandigarh 30^th May;- Ruchi Soya Industries Limited ("Ruchi Soya"), and Adani Wilmar Limited ("Adani Wilmar"), a joint venture between Adani Enterprises Limited ("Adani") and Wilmar International Limited ("Wilmar"), are pleased to announce that they have agreed to combine their respective procurement, marketing, distribution and sales businesses, for the products mentioned below.

It is contemplated that a new joint venture company will be formed which will own and manage all procurement, sales and marketing of the below mentioned businesses of the respective parties, and each party will also contribute its portfolio of brands in relation to the products mentioned below. The manufacturing requirements of the joint venture company are proposed to be fulfilled by Adani Wilmar and Ruchi Soya. It is proposed that Adani and Wilmar will, through Adani Wilmar, jointly hold an equity stake of 66.66% in the joint venture Company, and Ruchi Soya will hold 33.34%. A non-binding term sheet has been signed in this regard.

This proposed new integrated platform is expected to have significant value for both the Indian farmer, in terms of efficient handling of produce and sales realization, as well as for the Indian consumer, who will stand to gain from an increased range of high quality finished products through distribution networks that will be optimized to provide the highest standards of quality and handling, at the lowest cost possible.

Dinesh Shahra Founder and Managing Director, Ruchi Soya Industries Limited said that our company is truly honored to be able to partner with such reputable conglomerates, and together we feel we will be able to leverage on each other's strengths to truly make a difference to the agricultural backdrop of the country. This joint venture will not only enable us to continue with our core manufacturing operations via toll processing arrangements, but also to capture the synergistic value by working closely together and learning from each other's experience to make things more lean and efficient.