Rabo Private Equity tipped to exit Indian edible oils producer

Geepee was set up in 2004 as a 51-49 joint venture between Noble Group and Siam Stock Holdings, an associate of Thai conglomerate GP Group. GP Group took full ownership in June 2009 and Rabo Private Equity picked up a 26% stake for an undisclosed amount in September 2009. Both firms are expected to unload their entire shareholding to ADM.

Geepee has two plants, one in Kota, Rajasthan and the other in Akola, Maharshtra, with a total soybean and palm oil refining capacity of 200 metric tons per day. ADM owns plants in Latur and Nagpur following recent acquisitions. The addition of Geepee would see it almost double its crushing and refining capacities.

Illinois-based ADM is keen to bulk up production and secure grain procurement in times of rising food price inflation.

India's annual edible oil consumption is thought to be 15 million tons and growing at 5-7%. The industry is estimated to be worth INR750 billion. Domestic per capita consumption is 13 kilograms, well below China's 23 kg.

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• Topics
• South Asia
• Industrials
• Exits
• Rabobank Private Equity