The French starch specialist bought the assets from family-owned Riddhi Siddhi and will hold a majority stake in the new JV company, Roquette – Riddhi Siddhi.
A strategic alliance between the two firms started in 2006 when Roquette snapped up a 14.9% shareholding in the Indian starch firm. Purchasing three of Riddhi Siddhi’s starch production sites – one in the South West state of Karnataka, another North in Uttarakhand and the Western Indian state of Gujarat – has now established a JV.
Guy Talbourdet, CEO of Roquette Group, said that with this acquisition, the French firm becomes the first international player in the Indian starch industry.
“The move aims at supporting the growth of this market with an ambitious investment plan,” Talbourdet said.
Health and nutrition is a “strategic segment for Roquette, representing two thirds of its sales,” he said, and so India’s fast-growing market holds appeal.
He noted that the country’s population is surging, set to represent the most populated country in the world by 2030.
Strengthening an Indian position
Roquette aready has a representative office in Mumbai, established in 2007 along with a food applications laboratory set up in 2010. However, the new JV will reinforce its market position, the company said.
The family-owned Riddhi Siddi holds 25% market share in India’s starch market and registered a turnover of US$200m for 2011.
According to data from Indian diversified food group, Anil, the country’s starch market remains at a “nascent stage” with high growth potential compared to the global average.
Anil said the market is expected to surge by around 15% per year, driven by increasing demand from across various industries, including the food and beverage sector.