Ruchi Soya and Adani Wilmar plan joint venture in India

SINGAPORE (Reuters) - Ruchi Soya and Adani Wilmar said on Wednesday they planned a joint venture in India to tap into the country's growing food demand and purchasing power.

The new company will produce and distribute products including vegetable oils, soy foods, grains and biodiesel and hopes to reduce costs across logistics, supply chain management, manpower and distribution, the companies said in a statement.

Adani Wilmar, itself a joint venture of India's Adani Group and Singapore's Wilmar International Ltd -- the world's largest palm oil processor and one of the biggest soybean buyers -- will own 66.6 percent of the new joint venture.

Ruchi Soya, India's biggest edible oil refiner, will hold 33.4 percent. A non-binding term sheet has been signed in this regard, the statement said, adding that the proposed transaction was subject to due diligence, definitive binding documentation, and regulatory approvals.

"We are very bullish on Indian demand for high quality food products due to population and economic growth," said Kuok Khoon Hong, Chairman and CEO of Wilmar.

No details were given about the size of the new joint venture company and its plans.

(Reporting by Marius Zaharia, editing by David Evans)