Oilseed sector gets hot with entry of Louis Dreyfus
Louis Dreyfus India has made a foray into processing with soya crushing because of the excellent prospects for the crop this season.
By Nidhi Nath Srinivas, TNN |
NEW DELHI: Louis Dreyfus, one of the top three global commodity trading and processing companies, has become aggressive in India’s oilseed sector. The $20-billion company has leased several soyabean crushing plants this season to push its way into becoming one of the five largest soya processors in India, overtaking ITC.
The move may be part of a larger strategy within Louis Dreyfus India to rapidly expand its local presence in commodities where it is dominant worldwide. Louis Dreyfus is the world’s largest trader in cotton and sugar, and among the top global players in grains, coffee, oilseeds and orange juice.
The five soya factories being leased by Louis Dreyfus India includes Prestige Soya’s plant in Madhya Pradesh. The MNC expects to have a crushing capacity of 2,600 tonnes per day this season. Ambica Solvex, the Bhaskar group, and Ruchi Soya are the top domestic players in the soya industry.
Industry watchers say expansion into soyabean crushing may be an indication that Louis Dreyfus India is re-focussing its business strategy here to shift from mainly commodity trading to processing and merchandising.
“MNCs such as Cargill and Bunge have moved from only commodity trading to processing and branding. The question now is whether Louis Dreyfus will also get into vegetable oil port-based refining in India like Cargill,’’ said an observer.
Sources said Louis Dreyfus India has made a foray into processing with soya crushing because of the excellent prospects for the crop this season. With an expected crop size of around 9.5 million tonnes, India is gearing up for a record harvest.
Louis Dreyfus Commodities has a daily crushing capacity of over 30,000 tonnes and refining capacity of over 1,300 tonnes per day in South America.
The move may be part of a larger strategy within Louis Dreyfus India to rapidly expand its local presence in commodities where it is dominant worldwide. Louis Dreyfus is the world’s largest trader in cotton and sugar, and among the top global players in grains, coffee, oilseeds and orange juice.
The five soya factories being leased by Louis Dreyfus India includes Prestige Soya’s plant in Madhya Pradesh. The MNC expects to have a crushing capacity of 2,600 tonnes per day this season. Ambica Solvex, the Bhaskar group, and Ruchi Soya are the top domestic players in the soya industry.
Industry watchers say expansion into soyabean crushing may be an indication that Louis Dreyfus India is re-focussing its business strategy here to shift from mainly commodity trading to processing and merchandising.
“MNCs such as Cargill and Bunge have moved from only commodity trading to processing and branding. The question now is whether Louis Dreyfus will also get into vegetable oil port-based refining in India like Cargill,’’ said an observer.
Sources said Louis Dreyfus India has made a foray into processing with soya crushing because of the excellent prospects for the crop this season. With an expected crop size of around 9.5 million tonnes, India is gearing up for a record harvest.
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Given the bullish trend in global protein meal market, India’s soyabean processors are ready to get even better returns from exports. Since parent company Louis Dreyfus Commodities trades and merchandises oilseeds in all principal international markets, especially Brazil and Argentina, having its own plants in India would be an advantage.Louis Dreyfus Commodities has a daily crushing capacity of over 30,000 tonnes and refining capacity of over 1,300 tonnes per day in South America.
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