Cargill
and Parakh Foods join hands
The
Indian arm of the US agri-business giant Cargill India has signed a
memorandum of understanding with Parakh Foods in a move to expand its
edible oil business in the country. Parakh Foods, owners of Gemini,
is one of the fastest growing edible oil brands in India.
A joint venture company is expected to be floated soon, with Cargill
and Parakh Foods sharing an equal stake. Once finalised, the joint venture
company will be the largest in the country's edible oil business with
around 5,000 tonnes of refining capacity per day.
The Pune based Parakh Foods has two large refineries with an aggregate
refining capacity of 2,500 tonnes a day, including one at Kurkumbh in
Maharashtra. Cargill India's portfolio includes various foods like grains
and edible oils. The company has established a refinery in Paradeep,
Orissa, which is yet to start commercially.
India already has a couple of successful joint ventures in the edible
oil sector including the Mundhra-based Adani- Wilmar combine. The highly
fragmented edible oil refining industry has in the last three years
witnessed an explosion of new refining capacities (units with 1,000
tonnes a day and above), mostly concentrated near port towns such as
Kakinada and Kandla. All these units are almost entirely dependent on
crude oil imports.
