US-based Ingredion to invest Rs 198cr in Sanstar, set up JV

Mumbai: Ingredion Inc, US-based ingredient solutions multinational company in the food, beverages and pharma sectors, is investing nearly Rs 200 crore in Ahmedabad-based Sanstar Ltd, a leading corn-based specialty products and ingredient solutions firm through the preferential allotment route. The investment by the US major is part of a strategic partnership between the two companies that are also setting up a joint venture in India, a release from Sanstar said.
Sanstar’s board has approved the preferential allotment of equity shares to an arm of Ingredion, Corn Products Development Inc, at Rs 110 per share, worth Rs 198.3 crore. Sanstar will now seek its shareholders’ approval for the stake buy by the US company through the preferential allotment route. The fund infusion would strengthen Sanstar’s balance sheet to accelerate capacity expansion and diversification into value-added specialty product segments, the release said. Also, it would facilitate technology transfer and know-how sharing in advanced starch derivatives, plant-based ingredients, and functional texturant systems and pharmaceutical excipients, it said.
The JV in India will focus on specialty pharmaceutical excipients and other high-value ingredient solutions, the release said.
“This partnership with Ingredion marks a defining chapter in Sanstar's evolution from a leading corn starch manufacturer to a full-spectrum specialty ingredients company,” said Gautam Chowdhary, MD, Sanstar. “The preferential issue brings in a world-class, strategic anchor investor, while the (JV) will allow us to co-create high-value products for sectors that demand precision, purity, and innovation.”
As part of the partnership, Ingredion would contribute proprietary formulation, process technology and global applications know-how, while Sanstar would contribute to local manufacturing, procurement and regulatory expertise, the release said.