Ruchi Soya obtains approval to set up facilities in Karnataka, India

Ruchi Soya Industries (Ruchi Soya) has secured an approval from India’s Karnataka Government to establish several new facilities in the food and agri-business segment in Dakshina Kannada.

The company secured the clearance from State Level Single Window Clearance Committee (SLSWCC). Last November, Ruchi Soya signed a MoU with the state of Karnataka to build these facilities.

The firm will create an integrated value chain, which is expected to benefit farmers. Ruchi Soya will set up multi-location palm fruit and kernel processing units to produce edible oil, palm kernel cake, palm kernel oil and solar power.

The company will also install a nursery to produce high-yielding varieties of plant species and create awareness about oil palm cultivation.

Once the new facilities become operational, more than 17,000 people, including farmers, contract farming and agricultural workers will find employment.

Ruchi Soya Industries founder and managing director Dinesh Shahra said: "This proposed new integrated platform is expected to have significant value for both the Indian farmer, in terms of efficient handling of produce and sales realisation, as well as for the Indian consumer, who will stand to gain from an increased range of high-quality finished products."

The firm currently has procurement rights in palm-planted areas of more than 200,000ha, including 4,000ha in Karnataka.

Ruchi Soya is a leading cooking oil and soy food maker in India and marketer. Its brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.

Last month, India-based Adani Wilmar announced plans to create a joint venture (JV) with Ruchi Soya to cater to the growing domestic demand for food.

Adani Wilmar will hold a 66.66% stake in the JV, while Ruchi Soya will hold the remainder. The JV will procure, market, sell and distribute products such as grains, oil seeds and soya foods.