Ruchi Soya partners DJHII and KMDI
Posted on Feb 25 2014 | IBNS
Kolkata, Feb 24 : FMCG player in India Ruchi Soya Industries Limited Ruchi Soya has announced a joint venture with D J Hendrick International Inc (DJHII), a Canadian soyabean research corporation and center of excellence for development of healthy non genetically modified Soyabeans and KMDI International, a Japanese trader and marketer of high quality food grade Soyabeans.
The joint venture is combining expertise from each partner to uplift the low yields that India is currently facing which is amongst the lowest in the world, and far below the global average.
This will be done by a comprehensive marketing and distribution program of the soyabean seeds that it has researched and bred. Apart from the health and nutritional benefits to the population, India stands to save precious foreign exchange spent on imports, raise farmer incomes as well as positively impact the balance of trade and rural economy.
Ruchi Soya will hold majority stake of 55 percent in the joint venture whereas D J Hendrick International Inc and KMDI International will hold 35 percent and 10 percent respectively.
Dinesh Shahra, Founder and Managing Director, Ruchi Soya Industries Limited said, "The joint venture aims to widen best crop management practices for soyabean varieties tailored for different Agro climatic zones of the country and adapt varieties to increase yield and also, increase the supply of specially designed functional, nutritious and affordable soy food products for the population especially women and children who need rich nutrition."
"This association is an important step towards our business objective of making and building a Healthy India. Better yield will also ensure better returns for the farming community," he added.
India is the world's fifth largest producer of soybeans in the world, producing approximately 12 million metric tons (MT) annually.
This produces 1.8 million MT of soyabean oil.
However, India's productivity of just 1.017 MT of soyabeans per hectare is less than half of the global average of 2.5 MT per hectare. Further, India is a net importer of soyabean oil and imports almost 1.2 million MT annually.
David Hendrick - Chairman, D J Hendrick International Inc said, "We have vast experience in soy seed research and production of quality food which is rich in nutritional values. Our knowledge and know-how will be very helpful in developing and achieving the objectives of the joint venture"
Michael Treytiak - Managing Director, KMDI International said, "Our expertise and experience in marketing will play an important role in developing the seed business of the joint venture."