French firm eyes 36% more in Riddhi Siddhi

ET Bureau May 17, 2010, 0029 hrs IST

NEW DELHI: France?s Roquette Freres is in advanced talks to buy Riddhi Siddhi Gluco Biols, India?s largest starch and starch derivatives maker, in a deal that will significantly amplify its presence in a fledgling, but growing market.

The 77-year-old French company is looking to raise its stake to 51% from 14.93% in Gujarat-based Riddhi, which has a 25% share in the country?s starch and starch derivatives market, two persons close to the development told ET.

"Both parties have signed a non-disclosure agreement and are in the process of giving a final shape to the deal," said one person who is privy to the talks.

Roquette Freres is among the world?s leading makers of starch derivatives, used in foodstuff, adhesives and medicines, as well as the largest producer of polyols, used to make a wide range of products like chewing gum, candy and ice-cream.

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