The Hindu Business Line : Bunge to merge trading, manufacturing arms

The group is present in India through two separate companies - Geepee Ceval Proteins and Investments Pvt Ltd (GCPI) and Bunge Agribusiness India Pvt Ltd (BAI).

While GCPI is the manufacturing entity, BAI has been the trading arm.

Sources said that as per the proposal Bunge made to the Foreign Investment Promotion Board (FIPB), it plans to merge BAI into GCPI and the merger has already been approved by the High Courts of Mumbai and Rajasthan.

After the proposed merger, all activities of BAI will be carried out by GCPI, the sources added.

Also included in the proposed merger is allotment of about 62.5 lakh equity shares of Rs 10 each by GCPI to Bunge Agribusiness Singapore Pte in lieu of the stake this Singapore-based company holds in Bunge Agribusiness India. Prior to this restructuring, Bunge had bought out the 49 per cent stake held by non-resident Indians and others in GCPI and converted it into a wholly owned subsidiary last year.

When contacted, BAI officials declined to comment on the restructuring and the Regional General Manager (Asia) for Bunge Ltd, Mr Christopher S. White, could not be reached for comments.

The proposed merger comes even as Bunge Ltd is expected to invest up to $200 million over the next five years in expanding its edible oils business in the country.

The company, which acquired the edible oils and fat business of Hindustan Lever Ltd last year, recently extended the Dalda brand into refined edible oils, including groundnut, soyabean, gingelly and sunflower oils.

GCPI owns two manufacturing facilities in Rajasthan and Madhya Pradesh with a combined crushing capacity of 1,850 tonnes per day.

More Stories on : Mergers & Acquisitions | Oilseeds & Edible Oil

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page