30 April 2013

Mitsui and Kagome Invest in Processed Tomato Business in India

30 April 2013 - Mitsui & Co., Ltd., together with Kagome Co., Ltd., and Ruchi Soya Industries Limited, one of India's leading FMCG (fast moving consumer goods), agribusiness and food processing companies, have agreed to establish a joint venture company for the manufacture and sale of processed tomatoes. Mitsui and Kagome will establish a special purpose company (SPC) that will acquire 60% ownership in the JV

India is one of the largest consumers of tomatoes, as well as the second largest tomato producing country in the world followed by China. Although raw tomato consumption is the mainstream means of consumption in today's India, the market for processed tomato is expected to expand in the near future considering the remarkable economic growth and dietary culture changes. 

Kagome, a leading producer of processed tomatoes with production and distribution know-how, has designated India as one of the core countries for its overseas business due to the country's remarkable economic growth and status as a major tomato consumption. Furthermore, Ruchi Soya, which is part of the Ruchi Group, with whom Mitsui has joint business, is a leading company with an extensive distribution network as well as profound business know-how in India. The JV will explore the processed tomato market by combining the strength of Mitsui's global network, Kagome's manufacturing know-how and Ruchi Soya's distribution network. 

Mitsui's key initiatives under the Mid-Term Management Plan are acceleration of the implementation of a global strategy and acceleration of business development in emerging markets with rapid economy growth. Furthermore, Mitsui will accelerate business deployment in India, whose market is expected to grow continuously. Mitsui will also aim at expansion of the food market through cooperation with Ruchi Soya, a major local food company, by capturing the changes in lifestyles and dietary culture and offering high-quality processed tomato products together with Kagome, a leading partner in processed tomato business. 

Source: Mitsui