Edible oil manufacturer and soyabean processor Ruchi Soya Industries has inked a joint venture with two international companies for producing high quality food-grade and non-GM (genetically modified) soyabeans.

Dinesh Shahra, Managing Director and Chairman of the $4.8 billion-FMCG firm said the two firms — Canada-based D J Hendrick International Inc (DJHII) and Japanese soyabean trader KMDI International — will together hold about 45 per cent stake in the joint venture, while Ruchi Soya will have the majority stake of 55 per cent.

The company plans to invest around Rs 18 crore in the joint venture for four years and depending on the results would pump in more funds, Shahra said, and added that the first test crops will be produced by 2017.

He added that the aim is to reduce import dependency by improving the oil content in domestically grown soyabeans. The soyabean will be grown in Maharashtra, Madhya Pradesh and Rajasthan.

India is the world’s fifth largest producer of soyabeans, producing approximately 12 million tonnes annually, which is used to produce 1.8 mt of soyabean oil.

However, according to Shahra, India’s productivity of just 1.017 mt of soyabeans to a hectare is less than half the global average of 2.5 mt per hectare.

India is a net importer of soyabean oil, importing almost 1.2 mt annually. This joint venture would help increase production by 70 per cent, according to the company.

“The pace of consumption of soyabean oil is much faster than the local production. So, if corrective action is not taken, India’s foreign exchange bill will continue to widen,” he added.

While DJHII is committed to bringing its global breeding, processing technology and knowledge to the Indian market, KMDI International will bring to the table its global network and establish sound internal controls for the joint venture.

Shahra said, “The joint venture aims to widen crop management practices for soyabean varieties tailored for different agro-climatic zones and adapt varieties to increase yield and the supply of specially designed functional, nutritious and affordable soya food products for the population, especially women and children who need rich nutrition.”

The Mumbai-headquartered maker of soyameal feels that the future lies in increasing the overall quantum of soyabeans grown in India and improving its genetic make-up through a systematic breeding programme. It also feels that soyabeans as a food source can combat protein malnutrition in India.

The joint venture will work towards improving yields in the country, which is amongst the lowest in the world, and far below the global average. This will be done by way of a comprehensive marketing and distribution programme of the soyabean seeds that it has researched and bred.

Apart from the health and nutritional benefits to the population, India stands to save precious foreign exchange spent on imports, raise farmer incomes as well as positively impact the balance of trade and rural economy.

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