Ruchi Soya Industries and Adani Wilmar (a joint venture between Adani Enterprises and Wilmar International) have agreed to combine their respective procurement, marketing, distribution and sales businesses of Oil seeds and Vegetable Oils, Oil seeds crushing/extractions/refining, derivatives and by-products, Soya foods, by-products and all other food products, Oleochemicals, Biodiesel, Grains, Castor oil and derivatives.
The new joint venture company will own and manage all procurement, sales and marketing of the proposed businesses of the respective parties, and each party will also contribute its portfolio of brands in relation to the products. The manufacturing requirements of the joint venture company are proposed to be fulfilled by Adani Wilmar and Ruchi Soya. Further, it is proposed that Adani and Wilmar will, through Adani Wilmar, jointly hold an equity stake of 66.66% in the joint venture Company, and Ruchi Soya will hold 33.34%. A non-binding term sheet has been signed in this regard. The proposed transaction is subject to due diligence, definitive binding documentation, applicable regulatory and other approvals and certain other terms and conditions.