3F forms joint venture with Fuji Oil

Edible oil and food ingredient making company 3F Industries has tied up with Japanese oil and fats firm Fuji Oil Co to jointly set up a non-dairy cream making plant.

Rs.100 cr investment

The joint investment in the 15-acre plant is expected to be about Rs.100 crore. Fuji will hold 55 per cent in the joint venture while 3F will hold the balance.

The plant will be located at Burgul on the outskirts of Hyderabad.

“Construction of the factory will be completed in a year, and the factory will hire about 250 people, including marketing professionals,” said Sushil Goenka, director, 3F.

Cream making plant

The plant would make 500 tonnes of cream a month in the first year, and the capacity would be doubled in three years, he said.

Addressing the media, Fuji Oil Chairman Yoshitaka Ebihara said, “This is the first partnership in India for the $2.3-billion company. We already have several plants in China, Asia and other parts of the world. We see a great potential here.”

The demand for cream in the domestic market is estimated at 90,000 tonnes annually, and the share of non-dairy whip cream is around 25 per cent. Growth in demand for non-dairy cream is estimated at 15-20 per cent annually.