Ruchi Soya, edible oil and soyabean product maker, is foraying into processed tomato business.
The company has formed a joint venture with Kagome, a tomato product company of Japan and Mitsui, a trading and investment firm.
Ruchi Soya will hold 40% stake in the joint venture — Ruchi Kagome — while the remaining 60% will be held by a special purpose company (SPC). Kagome and Mitsui will hold 66.7% and 33.3%, respectively in the SPC.
The venture will initially produce tomato puree, ketchups, pasta sauces and so on, and may enter beverages and other categories, going ahead.
Sarvesh Shahra, business head-consumer brands division, said despite India being the second-largest producer of tomatoes in the world, only 1% of it is processed, which spells big opportunity.
The company is investing `44 crore for setting up a facility in Maharashtra. It will start marketing the products from mid 2013, but start production only mid 2014.
Dinesh Shahra, MD, Ruchi Soya, said the local processed tomato market was `600 crore in 2011 and is expected to touch `2,000 crore by 2017.
The company has formed a joint venture with Kagome, a tomato product company of Japan and Mitsui, a trading and investment firm.
Ruchi Soya will hold 40% stake in the joint venture — Ruchi Kagome — while the remaining 60% will be held by a special purpose company (SPC). Kagome and Mitsui will hold 66.7% and 33.3%, respectively in the SPC.
The venture will initially produce tomato puree, ketchups, pasta sauces and so on, and may enter beverages and other categories, going ahead.
Sarvesh Shahra, business head-consumer brands division, said despite India being the second-largest producer of tomatoes in the world, only 1% of it is processed, which spells big opportunity.
The company is investing `44 crore for setting up a facility in Maharashtra. It will start marketing the products from mid 2013, but start production only mid 2014.
Dinesh Shahra, MD, Ruchi Soya, said the local processed tomato market was `600 crore in 2011 and is expected to touch `2,000 crore by 2017.
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