30/05/2008 (Bernama), Mumbai - Sime Darby Plantation Sdn Bhd is scouting for a suitable partner to expand its business to India, aiming to take advantage of the country's increasing demand for palm oil.

Ranking India as a strategic and potential market, Sime Darby Plantation's managing director Datuk Azhar Abdul Hamid said the conglomerate was keen to enter the Indian plantation sector as soon as possible.

"India is an important market for us, offering huge opportunities and it's a strategic country. We are looking for the right partner for the basic entry into India," said Azhar, who was in Mumbai to attend the Malaysia-India Palm Oil Trade Fair and Seminar.

Sime Darby is currently exporting a small volume of about 30,000 tonnes of crude palm oil and refined products to India.

Buoyed by healthy economic growth, India is now the world's second largest importer of oils and fats, with total imports at 5.3 million tonnes last year, and it procured 510,000 tonnes of palm oil from Malaysia in 2007.

Sime Darby Plantation has met several Indian companies and also held discussions with the State Trading Corporation of India, and it plans to send a team soon to conduct an indepth study on the Indian plantation sector.

"We need to understand the market sentiment, risk management, tax structure and we want it to be a win-win situation," Azhar said.

The company is expected to explore the whole spectrum of the palm oil business, from planting to downstream activities.

On Friday, during a meeting with Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui, India's Agriculture Minister Sharad Pawar said companies like Sime Darby Plantation could embark on joint venture projects in the northeast of India, which is conducive for planting the oil palm crop.

"Our scientists have identified areas in the northeast which are good for oil palm plantations and Malaysian companies like Sime Darby could engage in research or planting. Malaysia can provide its expertise," Pawar said.

It would be Sime Darby Plantation's first venture in the South Asia region if its Indian venture succeeds.