[Back]   [Comments]  [Print]

NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

28/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Business Line

CATEGORY

HEADLINE

Consolidation seen in edible oils industry
Mumbai , Sept. 26 - INDIA'S edible oil industry could witness aconsolidation of domestic and international players, especially amongthose involved in overseas trades, according to a senior industry member.

At least 15 entities, 7-8 of them domestic players and the rest foreign,could end up controlling 50 per cent of the output of oilseeds fromIndia,'' according to Mr Sandeep Bajoria, President, Organising Committee,Globoil India .

"This is going to happen faster in imported and exported oil and oilseeds;palm leading the list followed by soyabean, castor, groundnut andrapeseed. Consolidation would be negligible among players involved insafflower and cottonseed,'' he said.

Commodity businesses have been undergoing major changes. This is primarilyhelped by the national multi-commodity exchanges. "The combined turnoverof multi commodity exchanges by 2010 will be in excess of turnover of theBSE and the NSE,'' he said.

Today, the combined turnover of the BSE and the NSE is around Rs 6,000crore - 7,000 crore, while those of national multi-commodity exchanges areRs 2,000 crore - 2,500 crore.

Broking firms have evinced interest in commodity trade; banks andfinancial institutions are now open to lending to commodity sector.Lending for procurement, storage and such activities is opening up.According to Mr Bajoria, the boom in commodity prices last year has partlylead to a change in attitude towards this sector.