Adani Wilmar, Ruchi Soya joins hands, to create India's leading consumer company

AHMEDABAD: Adani Wilmar, a joint venture between Gautam Adani-controlled Adani Enterprises and Wilmar International, has joined hands with Ruchi Soya Industries to combine their procurement, marketing, distribution and sales businesses, in a bid to create one of India's leading consumer goods company.

The joint venture company will cater to increasing domestic food demand, driven by the rising per capita consumption levels.

The combined platform is expected to rationalize costs across logistics and supply chain management, manpower and distribution by leveraging the existing networks of each organization. The manufacturing requirements of the joint venture company will be fulfilled by Adani Wilmar and Ruchi Soya.

Adani and Wilmar will, through Adani Wilmar, jointly hold 66.66% in the joint venture, and Ruchi Soya will hold 33.34%. A non-binding term sheet has been signed in this regard.
Commenting on the development, Gautam Adani, chairman of Adani Group, said, "The proposed partnership between Adani Wilmar and Ruchi will have a positive impact on the overall agricultural landscape of India. Our current partnership with Wilmar has been successful due to a solid combination of Wilmar's strategic outlook and experience in the international food business, coupled with our domestic operational expertise. We look forward to take the next leap forward with the Ruchi family through this new joint venture."

Dinesh Shahra, MD of Ruchi Soya, said "This joint venture will not only enable us to continue with our core manufacturing operations via toll processing arrangements, but also to capture the synergistic value by working closely. Together and learning from each other's experience to make things more lean and efficient."