Mumbai: Ingredion Inc, a US-based multinational ingredient solutions company serving the food, beverage, and pharmaceutical sectors, is investing approximately Rs 200 crore in Ahmedabad-based Sanstar Ltd, a leading corn-based specialty products and ingredient solutions firm. The investment is being executed through the preferential allotment route.
Strategic Partnership and Joint Venture
The investment by the American major is part of a broader strategic partnership between the two companies, which also includes the establishment of a joint venture in India, according to a release from Sanstar. Sanstar's board has approved the preferential allotment of equity shares to Corn Products Development Inc, an arm of Ingredion, at Rs 110 per share, amounting to Rs 198.3 crore. Sanstar will now seek shareholder approval for the stake acquisition by the US company through this route.
Fund Utilization and Benefits
The fund infusion is expected to strengthen Sanstar's balance sheet, enabling it to accelerate capacity expansion and diversify into value-added specialty product segments. Additionally, the partnership will facilitate technology transfer and know-how sharing in advanced starch derivatives, plant-based ingredients, functional texturant systems, and pharmaceutical excipients. The joint venture in India will focus on specialty pharmaceutical excipients and other high-value ingredient solutions.
Gautam Chowdhary, Managing Director of Sanstar, commented, “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. The preferential issue brings in a world-class, strategic anchor investor, while the joint venture will allow us to co-create high-value products for sectors that demand precision, purity, and innovation.”
Roles and Contributions
As part of the partnership, Ingredion will contribute proprietary formulation, process technology, and global applications know-how. In return, Sanstar will provide local manufacturing, procurement, and regulatory expertise. This collaboration aims to leverage the strengths of both companies to develop innovative ingredient solutions for various industries.
