Japanese chocolate maker Fuji Oil to sell off India unit to UAE-based IFFCO Group
SINGAPORE, NNA – Japanese industrial chocolate maker Fuji Oil group is set to sell off its India unit to two Southeast Asian arms of food maker IFFCO based in the United Arb Emirates (UAE) as part of its efforts to streamline its operations.
Fuji Oil Holdings Inc. and Singapore-based wholly owned subsidiary Fuji Oil Asia Pte. Ltd. will complete the share sale of 3F Fuji Foods Pvt. Ltd, which manufactures cream-based products, to IFFCO Singapore Pte. Ltd. and Malaysia-based IFFCO (S.E.A.) Sdn. Bhd. on Thursday, the Japanese firm says.
Currently, the Japanese group owns a majority stake in 3F Fuji Foods, with Fuji Oil Holdings and Fuji Oil Asia holding 24.45 percent and 30.55 percent of its outstanding shares, respectively, according to Fuji Oil’s statement released last Friday.
Fuji Oil Holdings spokeswoman Ai Murakami did not disclose the transaction value.
The move is part of its efforts to focus more on rapidly growing markets and those with growth potential, the statement said.
“We were confident that our business would grow in the huge Indian market. However, as we needed to make further investments to gain profits that will surpass our capital costs, we’ve made the latest decision to promote the selection and concentration of our portfolios,” Murakami said.
3F Fuji Foods manufactures cream-based food products for the Indian market. IFFCO Singapore, the holding company of IFFCO Group’s Southeast Asian operations, sells dietary oil and other food products. IFFCO (S.E.A), an affiliate of IFFCO Singapore, mainly markets food and consumer products, as well as procuring dietary oil.