Ruchi Soya in tech deal with US company

Edible oil and soya foods maker Ruchi Soya Industries (RSIL) is planning to expand its flagship brand Nutrela to functional foods and beverages.

As part of its growth strategy, it has signed an exclusive technology licensing agreement with NutriJoy, a US-based firm with key business of commercialisation of patented research technology for functional foods and beverages.

Ruchi Soya has drawn up business plans to introduce a new product range of food enriched with vital nutritional additives and cooking oils in the premium segment.

This product range will provide consumers health benefits through foods beyond basic nutrition.

The processed foods sector is pegged at a whopping Rs 2,50,000 crore. However, most of this market is unorganised. A major part of Ruchi Soya's Rs 8,000 crore turnover is contributed by Nutrela products.

Hence, the company now aims to leverage its expertise in the food space by further capitalising on its 25-year old Nutrela brand.

It would expand its range through brand extension and distribute them through its 2,000 distributors and 4 lakh outlets in the country.

The company is still under the process of identifying the categories for introducing the brands.

Following a market research to be carried in the next three-four months, it will select the categories for the introduction of the brand.

"The health food space in India is still at a very nascent stage. Hence, we will be looking into the specific needs of the Indian consumer before going ahead with the research and development for the products," said Sarvesh Shahra, head (food division), RSIL.

"The agreement with NutriJoy will provide us with world-class nutrition technology and a pipeline of commercialised, patented and market-tested products to further add value to RSIL's core brands in India and other products worldwide," he said.