Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (6279)	9/3/1999 1:52:00 PM
From: Mohan Marette	Respond to of 12475

Monsanto to give India its first branded rice bran oil Monsanto India monsantoindia.com Nidhi Nath Srinivas (ET Online) NEW DELHI 2 SEPTEMBER THE biotech multinational giant Monsanto is planning to enter the Indian edible oil market with the country?s first branded rice bran oil. This will be Monsanto's first foray into the domestic food market via its Indian subsidiary. With an expected investment of around $40m, the oil will be produced through a unique, patented technology developed by Monsanto. The technology stabilises the rice bran and increases its shelf life to up to a year. Monsanto will export the residual fibre and soluble matter derived from processed rice bran to Japan, Korea and China, where they are used as food additives and health foods. Japan, in fact, is one of the world's largest processors of rice bran. Monsanto is now looking for a partner, preferably either from Japan or Korea, to jointly invest in its rice bran project. "We would prefer a foreign partner because we can then enter into a buyback arrangement with them for the value-added fibre and soluble matter as well," said a company source. Monsanto has completed due diligence of its stabilisation technology in India at a mill located in the rice belt of Nainital. "We have been very successful in our trials and find that the technology is well suited even for small mills in India. So, we are also examining the feasibility of selling the technology/equipment in the domestic market, while protecting our patent rights," they added. Monsanto is now finalising the location, number and size of its processing plants for commercial production. Rice bran is a by-product derived from milled rice and hitherto it is used largely for cattle feed in India. The small volume of oil produced is consumed mainly by vanaspati units. "Since the bran, which is a waste product from rice mills, should reach our processing unit within two hours, it is vital that we locate our facilities in the major rice belts of India. Moreover, since rice bran is often in short supply, we have to decide on a viable size for our plants," sources said. The multinational is also deciding on the kind of marketing network needed to distribute the edible oil all over the country. Monsanto?s large-scale production of rice bran oil should spell good news for consumers as it has been proved to be one of the most healthy edible oils, especially for those with a cholesterol problem. Its by-products in the form of fibre and soluble matter can be used as additives in infant formulae, health foods and extruded products. However, till now no Indian company has been able to successfully stabilise the active enzyme lipase present in the bran, which usually turns it rancid and unfit for human consumption within four-eight hours. Even companies in Korea and Japan have been unable to stabilise the lipase without fixing the colour and odour. "Monsanto has invented a process of controlling temperature, which stabilises the bran without any colour and odour fixation. As a result, the oil derived from it is bright and odour-free, sources said.