Ruchi Soya Industries, a fast-moving consumer goods (FMCG) company focused on edible oil, soya products and margarine, plans to foray into tomato processing. The company has entered into a joint venture (JV) with Japanese tomato processing company Kagome Co Ltd and with Mitsui & Co Ltd, which has presence in trading, investment and services. The JV will be called Ruchi Kagome.
In the new JV, Ruchi Soya will have 40 per cent stake and 60 per cent will be held by a special purpose vehicle (SPV) created by Kagome and Mitsui, which own 66.7 per cent and 33.3 per cent share each in the SPC.
The first processing unit will be set up in Maharashtra with an initial investment of Rs 44 crore and commercial production will begin by June 2014. Land for the unit has been identified.
The JV plans to launch premium tomato purees, sauces, ketchups and other world-class products in India. Ruchi Kagome will work closely with Indian farmers. It will distribute higher yielding seeds and share global knowledge to educate local tomato producers, and set up local support centres.
Dinesh Shahra, founder and managing director of Ruchi Soya, said, "We are planning to launch a range of tomato products. These products will be marketed in both the business-to-business (food services) segment and the business-to-consumer (retail) segment."
The company will also educate farmers on choosing better crop suitable for processing and may also enter into buyback arrangements, subject to commercial viability.
