Thai Union Group PCL (Thai Union) today announced the signing of a joint venture agreement with R&B Food Supply PCL (RBF) and Srinivasa Cystine Private Limited (SCPL) to launch a new company focused on serving high quality food ingredients to the Indian market.
This new partnership, facilitated by Thai Union, leverages the respective strengths of RBF, Thailand's leading food ingredients company, and SCPL, an associate company of Avanti Group, which is a leader in aquaculture and marine food processing in India.
The new company will market RBF's food ingredient products, including flavoring and coating, and will also over time potentially explore the setup of its own manufacturing facility in India.
The joint venture company will be registered in India with INR 100million authorized capital (INR 76million issued and paid-up capital). RBF, SCPL and Thai Union will each hold 51percent, 30percent and 19percent of the ordinary shares, respectively.
Somchai Ratanapoompinyo, CEO of RBF said that "this joint venture is the next step in the strategic alliance forged between RBF and Thai Union, and a further demonstration of the work being done to create mutually beneficial synergies. Utilizing Thai Union's global platform, we were introduced to Avanti Group, which has a strong reputation and multi-decade track record in India. With our partners, we are confident in leveraging our extensive food ingredients experience to produce innovative products tailored for Indian customers. This milestone delivers on RBF's strategic direction to become a global player."
Alluri Indra Kumar, Chairman & Director of SCPL said he was "delighted to welcome RBF to partner with Avanti Group and bring their products to the Indian market along with Thai Union, our long-term partner with whom we have a strong relationship of almost two decades. India is a fast-growing market with high potential for food ingredients, such as food flavoring, coloring and coating products. I am confident that this new company, led by well-established food processing experts, will provide the food ingredients market with high quality products for seafood, chicken and meat processing."
Thiraphong Chansiri, CEO of Thai Union said that "bringing together RBF and Avanti Group is a testament to the power of partnership, and the mutual trust and respect among our partners. With India's food export sector moving towards value-added, we see an exciting potential for food ingredients. Our combined strengths will accelerate the joint venture's ability to serve this growing need. As a global food player, we will leverage our capabilities and network to support the joint venture going forward."