Riddhi Siddhi Gluco Biols, a leading player in India’s food and agro-processing sector, has announced its re-entry into the starch segment with the acquisition of Cargill India Private Limited’s starch business in Karnataka’s Davangere.
Deal size estimated at ₹250 crore
According to market sources, the deal is estimated to be valued at around ₹250 crore and includes Cargill’s land, manufacturing facility, warehouse and corn silo.
Significantly, Riddhi Siddhi Gluco Biols had exited the starch business in 2010, and this acquisition of Cargill India’s corn wet milling division marks the company’s return to the segment after more than a decade.
Plant capacity of 3 lakh metric tonnes
Cargill India’s Davangere plant is spread over 52 acres and has an annual production capacity of 3 lakh metric tonnes. The facility manufactures products such as maltodextrin and liquid glucose, along with by-products including corn gluten, corn germ and corn fibre.
Company cites strategic expansion as rationale
Explaining the rationale behind the acquisition, Riddhi Siddhi Gluco Biols Executive Director Siddharth Chaudhary said the deal would help expand the company’s product portfolio.
He added that the transfer of the manufacturing unit in Karnataka would strengthen the company’s presence in the food and pharmaceutical markets of south India and also make exports to overseas markets easier.
