Riddhi Siddhi Gluco Biols has announced the acquisition of Cargill India’s wet milling business, marking the company’s return to the starch business after exiting the segment in 2010.
Asset purchase agreement signed
The companies have signed an asset purchase agreement to acquire the US company’s factory in Davangere, Karnataka, but declined to disclose the financial details of the deal.
According to informed sources who declined to be quoted, RSGB will pay around Rs 250 crore for the purchase.
Financing and revenue increase
Siddharth Chowdhary, executive director of RSGB, said the company is financing the acquisition through internal revenue. The deal will see the company re-enter the starch business, boosting annual revenues by over Rs 800 crore.
The acquisition includes acquisition of assets of the plant, spread over 52 hectares, with a capacity of 3 lakh tonnes for production of maltodextrin, liquid glucose and by-products such as maize germ, maize gluten and maize fibre, he said, adding that warehouses and maize silos will also be acquired.
Cargill’s departure from India
Underlining that the purchase presents significant business opportunities, he said Cargill wanted to exit India through sales and chose RSGB because of its experience in this area.
Competition after takeover
After the acquisition, which is expected to take up to 45 days for mandatory approvals, RSGB will compete with French company Roquette Freres, to which it had sold its unit in 2010, he said.
There was a non-compete agreement as part of the 2010 sale, but that no longer exists, he added.
Growth ambitions
“We are betting a lot on our old customers and want to be the top player in this segment,” said Chowdhary.
The RSGB scrip gained 18.73 per cent to close the session at Rs 575.90 apiece on the BSE on Monday.
Published on January 19, 2026
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