FGV Signs MoU With Strategic Business Partner To Explore India Market

KUALA LUMPUR, April 3 (Bernama) -- Felda Global Ventures Holdings Bhd (FGV) has signed a memorandum of understanding (MoU) with Trimex Industries Private Limited (Trimex), with the aim to explore the feasibility of supplying and distributing various palm oil products to penetrate India’s midstream and downstream market. Trimex is a subsidiary of India’s Trimex Group, one of the region’s largest mineral and metal conglomerate, involved in the business of mining and trading of industrial minerals with a logistical footprint in key ports in India. "In-line with our market expansion strategy, we are looking at diversifying our product offerings to small and medium business and consumer markets," said Group President and Chief Executive Officer Zakaria Arshad in a statement. With this MoU, FGV hoped to explore the possibility of supplying and distributing FGV’s palm oil to India in partnership with strategic industry players such as the Trimex Group. India is FGV's biggest market for crude palm oil and refined, bleached & deodorised palm oil with a total combined export of 600,000 tonnes, annually," he said. As the world’s largest importer of palm oil, India accounted for between 10 and 12 per cent share of global consumption, said Zakaria. However, growth in production of domestic edible oil has not been able to keep pace with growth of consumption and the gap continued to become wider as disposable incomes increased. The gap is being met by imports of edible oils for almost 55-65 per cent of the total consumption recorded during the past five years. More than 14 million tonnes of edible oil was imported in 2015 with a ratio of 89 per cent crude edible oil and 11 per cent refined oil. CPO is the largest edible oil imported by India at about 54 per cent followed by soybean oil and sunflower oil contributing about 21 per cent and 11 per cent, respectively. -- BERNAMA