3F Industries in Joint Venture with Fuji Oil to Make Non-dairy Cream Products - The New Indian Express

3F Industries in Joint Venture with Fuji Oil to Make Non-dairy Cream Products

Published: 18th January 2014 02:23 AM

Last Updated: 18th January 2014 02:23 AM

3F Industries Ltd, earlier known as Foods, Fats & Fertilizers, has tied up with Japan’s Fuji Oil Co Ltd to set up a non-dairy cream manufacturing facility at Burgul, near Hyderabad.

A joint venture has been executed between both the companies and the proposed unit will have an investment of over `100 crore. The facility will be operational by March 2015.

“Fuji will hold 55 per cent, while the Indian partner will have 45 per cent stake in the JV,” Sushil Goenka, Director, 3F, which is based in Hyderabad, said on Friday.

While Tokyo Stock Exchange-listed Fuji Oil will provide the technology, 3F will foresee setting up of the project, distribution and marketing of the products.

Initially, these products will be marketed within India and subsequently consider exports to West Asia and Western African regions.

The plant is being set up in 15 acres and will have an initial capacity of 500 tonnes per month. Sales are expected to touch 5,000 tonnes in next three years. 3F will acquire an additional 10 acres when the production capacity is doubled.

Currently, the demand for cream is about 90,000 tonnes per annum, of which non-dairy cream comprises about 25 per cent. “Twelve more related products such as softy ice cream, cooking cream are in the pipeline to be launched after non-dairy cream,” Sushil said.

According to Yoshitaka Ebihara, Chairman, Fuji Oil, the integration of sales, marketing network of 3F and its best-in-class customer services together with our quality cream will enable customers in India expand their confectionary and bread business more.

“This JV 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,” he said.

Fuji Oil, producers of oils, fats, food ingredients and processed foods, registered a sales turnover of $2.3 billion and a profit of $130 million for the year ended March 2013.

The 50-year-old 3F Industries, is a pioneer in the manufacturing and sale of bakery shortenings, margarine and other speciality fats. The unlisted firm registered a turnover of `1,339 crore in 2012-13 and expects to touch `2,000 crore in the next three years.

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