Malaysia's Felda Global Ventures is forming a joint-venture with Hyderabad-based Pre-Unique India to expand its operations in India, including the operation of agricultural plantations.
FGV to start direct presence in India’s food, agri-based products market
KUALA LUMPUR, May 8 — FGV Holdings Bhd (FGV), via its indirect wholly-owned unit FGV Trading Sdn Bhd (FGVT), is forming a joint-venture (JV) company with Hyderabad-based Pre-Unique India Pvt Ltd (PreU) to directly participate in the food and agri-based products market in India, particularly in South India region.
Under the agreement signed today, the partners would conduct intelligence work; provide advisory work and services for agricultural, plantation, and downstream related activities; operate agriculture, plantation, food and non-food processing facilities; and trade and market food and non-food products, FGV said in a statement today.
FGVT will hold a 70 per cent stake in the JV company, which is expected to be set up within six months.
Previously, FGVT, which is a subsidiary of FGV’s wholly-owned unit FGV Plantations Sdn Bhd, exported crude palm oil (CPO) and refined products into the Indian market, the company said.
FGV group chief executive officer Datuk Haris Fadzilah Hassan said as the growth prospects of India’s market is huge given its population of more than 1.3 billion, the JV fits well into FGV’s long-term strategy to become one of the world’s leading integrated and sustainable agribusiness players.
“It is also a great opportunity for FGV to create presence along the palm oil value chain in the Indian consumer market, with a special focus on fast moving consumer goods food products,” he said.
FGV said in this JV, PreU would be responsible to provide local access and market reach for the JV. — Bernama