INDIA: Fuji Oil, 3F to build ingredients plant
the new facility will specialise in the production of non-dairy cream for the bakery and confectionery sectors.
Japanese food and oil firm Fuji Oil Company has formed a joint venture with India's 3F Industries to set up a production facility to make ingredients for bakery and confectionery customers.
The plant will be situated in the state of Andhra Pradesh, close to the city of Hyderabad where 3F, a manufacturer of bakery fats, margarine and confectionery fats, has its headquarters. It is expected to start production by March 2015.
The initial investment into the project is expected to be around INR1bn (US$16m). Fuji Oil will have the majority share of the new company in a 55:45 split. The company said on its website "expansion within the Asian market" was one of the key focuses for the group's global management.
Yoshitaka Ebihara, chairman of Fuji Oil Japan, expressed his delight at the new partnership.
"The integration of sales/marketing network of 3F and 3F's best-in-class customer services together with our quality cream will enable customers in India to expand their confectionery and bread business more. This joint venture is Fuji Oil's first foothold in India, where high growth of the market is expected. We are confident that the joint venture will grow rapidly and make sustainable growth."
3F director Sushil Goenka added: "We are very happy to partner with Fuji Oil and explore the rapidly growing market of non-dairy cream and supply world-class products to our customers. This partnership will also allow us to build further scale and competencies in areas of processed vegetable oils and fats and other foods products for the Indian market."
The demand for cream in India is estimated to be around 90,000 tons per annum. The market for non-dairy whip cream is expected to expand at 15-20% per annum.
3F INDUSTRIES LTD., an Indian Edible Oils, Fats & Food ingredients conglomerate, has together with FUJI OIL CO., LTD., a Tokyo stock exchange listed company and world leaders in edible oils, fats and processed foods, inked an agreement for setting up a Joint venture.
Mr. Yoshitaka Ebihara, Chairman, Fuji Oil; Mr. S.B.Goenka, Chairman, 3F; Mr. Tomoyuki Yoshida, Managing Director, Fuji Oil Asia Pte. Ltd., and Mr.Sushil Goenka, Director, 3F announced this at a Press conference, here today. The initiative involves setting up of a state-of-the-art facility for production of non-dairy cream and other food ingredients for use in the bakery & confectionary Industry. The plant will be situated in the outskirts of Hyderabad at Burgul in Mahbubnagar district of Andhra Pradesh.
Both the companies bring their strengths of extensive product knowledge, strong R&D and excellent marketing network, to ensure success of this joint venture. Fuji oil is a leading producer of Oils, Fats, Food ingredients and Processed foods, with marketing footprint across the globe. It has established several state-of-the-art manufacturing facilities in Japan and other countries. 3F Industries (formerly Foods, Fats and Fertilisers Ltd), a 50 year old company based in Andhra Pradesh, is a pioneer in the manufacture and sale of bakery shortenings, margarine and other specialty fats in India, with modern manufacturing facilities, extensive marketing network and a wide customer base.
The joint venture will build a modern plant using the latest technology from Japan and equipment from leading process equipment manufacturers in the world. The initial investment in the plant, machinery and land is expected to be around Rs 100 crores and the plant is expected to commence production by March 2015. The JV will be partnered 55:45 with Fuji oil having the majority share. Whilst Fuji Oil, Japan would bring in world-class technology, 3F Industries would beinvolved in the setting up of the project, distribution and marketing of the products.
The plant will produce high-quality non-dairy whipping cream to suit the taste of Indian consumers and tap the huge potential this country presents. The demand for cream in the Country is estimated to be around 90,000 tons per annum. The market for non-dairy whip cream is expected to expand at 15-20% per annum. We are entering this rapidly growing market to make available high quality products and will initially focus on satiating the demand from bakeries, hotels & restaurants, confectioners and retail outlets. With an in-depth knowledge of the market and huge customer base, the Joint venture Company is expected to post promising results.
"We are delighted to partner with 3F and can offer quality products to 3F's customers," said Yoshitaka Ebihara, Chairman of Fuji Oil Japan "The integration of sales/marketing network of 3F and 3F's best-in-class customer services together with our quality cream will enable customers in India expand their confectionary and bread business more. This Joint Venture is Fuji Oil's first foothold in India, where high growth of the market is expected. We are confident that the Joint Venture will grow rapidly and make sustainable growth."
Speaking about the Joint Venture, Sushil Goenka, Director of 3F said, "We are very happy to partner with Fuji Oil and explore the rapidly growing market of non-dairy cream and supply world-class products to our customers. This partnership will also allow us to build further scale and competencies in areas of processed vegetable oils & fats and other foods products for the Indian market."
Tomoyuki Yoshida, Managing Director, Fuji Oil Asia Pte. Ltd. said "Getting support and help from 3F and our parent company, we will make our best efforts to construct our plant as soon as possible and start production of cream, introducing Japanese quality control systems. We are paying attention to the Indian customers' requirements and will make non-dairy cream that will surpass their expectations."
About FUJI OIL CO., LTD. (Osaka, Japan)
Fuji Oil was established in 1950 as vegetable oil and fats company. Fuji Oil has been operating its business in a spirit of innovation, never imitation, working closely with customers to develop products that utilize their oils and fats, confectionary & baking ingredients, and soy protein preparations. The company has extended its operations overseas and has subsidiaries and affiliated companies in Europe, Africa, Asia, China, North and South America.
The company's stock is listed on the first section of Tokyo Stock Exchange (TSE). Consolidated financial results for FY2013 ended Mar.31, 2013 are as follows; Net Sales: 232,161 million JPY, Ordinary Profit 13,017 million JPY, Net Assets 197,142 million JPY Consolidated Number of employees: 4,034. FUJI OIL ASIA PTE. LTD., 100% subsidiary of FUJI OIL CO., LTD. located in Singapore, plays the role of regional headquarter of FUJI OIL group.
About 3F INDUSTRIES LTD. (Formerly Foods Fats & Fertilisers Ltd. AP, India)
Starting with edible oil extraction and refining, 3F has branched out into multifarious vistas viz., oil palm cultivation, manufacture of edible oils and its by-products, bakery shortenings and margarine, specialty fats, oleo chemicals, commodity trading, and power generation. Notably, 3F have emerged as one of the largest producers of specialized Bakery fats, Margarine and confectionary fats. They are considered as market leaders in specialty fats technology.
Group Consolidated financial results for FY2013 ended Mar.31, 2013 are: Net Sales: INR 13.39 Billion, Ordinary Profit INR 380 million, Net Assets INR 4050 million.
Consolidated Number of employees: 1500 Nos.
Original source: Fuji Oil
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