A Singapore-based Indian-owned commodities trading company which has committed USD 91.8 million investments in India, today said it will continue to invest in sectors like spices, cotton, grain and coffee.
Olam International Ltd will invest in Indian commodity businesses such as spices, cotton, grain and coffee among others, said Sunny Verghese, co-Founder, Group Managing Director and CEO of Olam which has global commodity and agri businesses.
"Investments in India will continue as all these businesses are doing very well for us," Verghese told PTI.
Olam started its operations in India in 1992 with raw cashew nut trading, and grown pan-India footprint of 10 key products.
Olam has committed USD 91.8 million investments in India, including an USD 18 million into Vallabhdas Kanji Limited's (VKL) spice business and a USD 73.8 million investments into Hemarus Industries Limited (HIL) in the sugar business.
Olam also has other investments in export and import businesses in India.
But Verghese was quick to add that Olam will not be in an upstream agricultural sector due to the regulatory restriction on foreign corporations getting farmland.
Verghese was also positive on the long-term prospects for Olam businesses, citing growing population increasing food demand, rising per capita income, changing dietary habits, significant water constraints and shrinking farmland.
But for the near term, "we expect a mixed bag as mostly thereare ample supplies and declining prices," said Verghese, citing different trends in commodity, produce and product prices across global markets.
He anticipates a bearish price trend for some of the products over the next six to 12 months.
