Turkish food processing firms scouting for JVs

Turkish food processing firms scouting for JVs

 Turkish agro food processing machinery firms are making their first major pitch to broaden their presence in the Indian market through joint ventures and customer contacts. 

These firms are primarily from the Corum province of Turkey, a major grain processing region, which accounts for almost 35 per cent of that country’s annual exports of grain processing machinery and equipment exports.

“We are keen to explore joint ventures with Indian companies to realise the high potential for the cutting-edge grain processing machinery in India’s agriculture-driven economy. We are looking for customers in supporting sectors as well,” said Engin Ozucan, coordinator with the Grain Tech Cluster, a nodal body of Turkish grain processing machinery manufacturing companies.

A 14-company delegation of Turkish grain processing machinery firms arrived in Bangalore on Thursday to scout for joint venture opportunities with Indian agro processing firms and government departments for exchange of technical know-how in grain milling machinery equipment. The delegation includes Corum-region based companies Akilli Makina, Arar Makine, Duduoglu Celik, Dura Makina, Ozdilekci Makine and Yagmaksan Yagilar. The companies, who have collective revenues of  about $100 million, will also meet Indian investors and potential customers during their three-day sojourn in Bangalore.

Machinery industry 

The Grain Tech Cluster will also look at establishing research and development ventures with Indian agro equipment companies, members of the body said in an exclusive discussion with Deccan Herald.

“The Turkish grain processing machinery industry is internationally recognized and the Corum province of Turkey has become a hub for the grain processing industry in Turkey. This is a great opportunity for the Corum-based industry to look at new markets like India where Chinese equipment manufacturers have been having a free run,” Ozucan said.

He said that Turkish grain processing machinery imports to India have averaged just $10 million annually in the last five years. 

“This is too little, and Turkish firms are now looking at growing their distribution networks in northern India while forging tie-ups with Indian companies to proactively penetrate the agro equipment market,” Ozucan added. Noting that the Turkish grain output has been driven by intensive use of cutting-edge technology like robotic applications, computerised numerical control and other sophisticated manufacturing process, Halil Erkan, director of Erkan Makina Endustri Imalat, a Corum-based firm, said that Turkish firms would be looking at providing turnkey solutions across the food processing spectrum in India.

Companies comprising the Grain Tech Cluster are participating in the 5th Grain Tech India 2014 exhibition in Bangalore.