New Delhi: Indian edible oil majors Adani Wilmar and Ruchi Soya have tied up to form a joint venture company for procurement, marketing, distribution and sales of products like grains, vegetable oil and biodiesel oil.
Adani Wilmar will hold a majority stake of 66.66% in the joint venture company while Ruchi Soya will hold 33.34%. A non-binding term sheet has been signed in this regard.
(Also Read: Adani Ports Q4 net up 38 percent)
The joint venture will have the rights to originate, market and distribute certain finished products from the manufacturing businesses of Adani Wilmar and Ruchi Soya in India. It will help in increasing efficiencies and rationalise costs across logistics by leveraging the existing networks of each organisation.
Adani Wilmar has the largest distribution network among all branded edible oil players in India, with more than 93 stock points and 3500 distributors.
Established in 1986, Ruchi Soya has emerged as an integrated player, from farm to fork with secured access to oil palm plantations in India and other key regions of the world.