Riddhi Siddhi Gluco Biols (RSGB), a BSE-listed company and a leading player in India’s starch and starch derivatives sector, has announced the acquisition of Cargill India’s corn wet milling division, marking its return to the starch business after a gap of over a decade, media reports said.
The companies have signed an asset purchase agreement for Cargill’s manufacturing plant at Davangere in Karnataka. While the financial details were not officially disclosed, sources familiar with the transaction said the deal is valued at around Rs 250 crore.
RSGB executive director Siddharth Chowdhary was quoted as saying that the acquisition will be funded through internal accruals and is expected to add more than Rs 800 crore to the company’s annual revenues.
The asset buy includes a 52-acre plant with a capacity of three lakh metric tonnes, used to manufacture maltodextrin, liquid glucose and co-products such as corn germ, corn gluten and corn fibre. Warehouses and corn silos are also part of the transaction.
Chowdhary said Cargill decided to exit India and chose RSGB as the buyer due to its prior experience in the starch segment. The acquisition, subject to mandatory regulatory approvals, is expected to be completed within 45 days.
Following the transaction, RSGB will compete with French company Roquette Frères, to which it had sold its starch business in 2010. Chowdhary noted that the non-compete clause from the earlier sale has since expired.
“We are banking on our old customers and aim to emerge as the top player in the segment,” he said.
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Naresh Khanna – 10 February 2025
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