Mumbai: Gujarat Ambuja Exports Ltd (GAEL), one of India’s top soymeal exporters, is slowing down its expansion plans due to the turbulent market situation, a senior official told Reuters on Wednesday.
The firm, which had plans to expand its crushing and processing capacities, is putting them on hold but will review these plans once the market stabilises, Chairman Vijay Kumar Gupta said.
“We will take a call on our expansion plans depending upon the market situation. We are going a little slow now as it is not the right time,” he said.
In April, a senior company official had said was to finalise plans to expand crushing capacities and setting up crushing plants overseas by the June quarter.
India’s second largest soybean crusher expects prices of the key raw material to be stable at around Rs18,000-20,000 per tonne between Oct-March 2009, Gupta said.
GAEL hopes to export around 0.7-0.8 million tonnes soymeal in the year ending September 2009 and has already contracted 30,000-40,000 tonnes for export.
In the year ending September 2008, the company is estimated to have exported about 0.45 to 0.5 million tonnes, mainly to south-east Asian countries like Vietnam, Indonesia, Malaysia and Thailand.
“Far-east countries will buy soymeal aggressively even this year,” Gupta said.