Ruchi Soya in non-GMO soybean joint venture with D J Hendrick and KMDI.

Indore-based Ruchi Soya Industries Ltd, one of India’s leading fast-moving consumer goods, forms a joint venture with Canadian soybean research corporation D J Hendrick International Inc (DJHII) and Japanese soybean trader KMDI International. The joint venture is aimed at undertaking research, producing, marketing and distributing high-yielding non-genetically-modified (non-GM) soybean seeds with a higher oil percentage and nutritional value.

Ruchi Soya was represented by Dinesh Shahra, its managing director; his Singapore-based son Ankesh (who is director, business development) and Akhilesh Sarraf (another director of the company). DJHII was represented by chairman David Hendrick, and KMDI International was represented by managing director Michael Treytiak. During the interactive session, which took place in Mumbai, the Shahras and Sarraf highlighted the importance of soybean as a source of food for Indians.

“India being a predominantly vegetarian country, its population needs to consume soybean to combat protein malnutrition and obtain the requisite calorific values and food security. We, at Ruchi Soya, believe that the future lies in increasing the overall quantum of soybean grown in the country and improving its genetic make-up through a systematic breeding programme,” they said. India is the fifth-largest soybean producer in the world. It produces about 1.2 million metric tonne (MT) per annum.

“This, in turn, produces about 1.8 million MT soybean oil. However, India’s output - just 1.017 MT soybean per hectare - is less than half the global average of 2.5 MT per hectare,” informed Dinesh Shahra. “India is a net importer of soybean oil, and imports approximately 1.2 million MT annually. The pace of consumption of soybean oil is faster than the local production, so if corrective action isn’t initiated, India’s foreign exchange bill would continue to widen, leading to an increasing trade deficit,” said Ankesh Shahra.

The joint venture would reduce India’s import dependency by improving the oil content in domestically grown soybean, and to raise the farmers’ incomes. Hendrick said, “We have considerable experience in soy seed research and production of quality food which is rich in nutritional value.” Treytiak said, “Our marketing expertise would play a key role in developing the joint venture’s seed business.” While the Indian firm would hold a 55% stake in the joint venture, D J Hendrick would be a 35% stakeholder, and the remainder would be the Japanese company’s share.

Source : fnbnews.com