Indian salt heads for global markets

Korean conglomerate Samsung Corporation has decided to source a large percentage of its salt requirements from salt industry in Gujarat.

The development was expected to lift the fortunes of India's salt manufacturers, most of which were based in Gujarat and Rajasthan.

Samsung's interest developed after a cyclone almost wiped out the salt industry in China, which was so long Samsung's main source for types of salt used globally by chemical and salt manufacturing units.

A Samsung team from Seoul was expected next week for inspection of facilities at the salt-pans and the ports of Kandla, under the Kandla Port trust (KPT), and Mundra, run by Guajrat Adani Ports Limited.

At least two major salt manufacturing companies here were expected to sign exports deals soon.

Vikas Patel of Urvikunj Industries described his talks with Samsung Corporation as being in an advanced stage for sourcing.

"Samsung initiated talks only few days back and we have agreed to supply crystal salt in the next few months while a team from Korea is expected to visit the facilities next week. This will be a breakthrough for the salt industry which was not doing so well in exports, specially because of lack of steady business from organised overseas players," he added.

Once the pricing of salt was agreed upon, the firm would ship salt from Kandla port as it was close to Gandhidham where most salt pans were located.

The first consignment from Urvikunj was expected to reach Seoul in the first week of October. Salt exports were restricted so long to Bangladesh, Hong Kong and Thailand, and to some extent Japan.

Manojkumar Jain of Jain Associates of Gandhidham said, "There are proposals from other industrial salt trading companies in China and Korea while there is a sharp increase in business proposals from Japan, which earlier used to source most of its salt from China".

Salt manufacturers from Rajasthan could also gain as the state was a major producer of salt as well.

The entry of Samsung was expected to help the salt industry establish its credibility globally, Jain said.

"Samsung so far had been sourcing salt from Jiangxi Salt, a Chinese entity, and only recently decided to target the south-east Asian countries. Even if Chinese salt manufacturers resume supply after six months or a year, Samsung is expected to settle a long-term purchase agreement with us," he added.

Samsung, better known as a white goods company in India, was a major global trader in refined soyabean and corn oil, palm oil, yellow grease, wheat flour, white sugar and corn starch as well as sodium chloride (NaCl) in USA, South Korea and other developed markets.