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Producer and Exporter of Guar Gum since 1960

Guar Gum A perspective from the Food Industry presented by. Producer and Exporter of Guar Gum since 1960. Guar Seed, Splits & Powder. Guar Pod. Guar Seed. Guar Gum Powder. Guar Splits. Guar Gum – a versatile hydrocolloid.

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Producer and Exporter of Guar Gum since 1960

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  1. Guar Gum A perspective from the Food Industry presented by Producer and Exporter of Guar Gum since 1960

  2. Guar Seed, Splits & Powder Guar Pod Guar Seed Guar Gum Powder Guar Splits

  3. Guar Gum – a versatile hydrocolloid • In the food industry Guar Gum is used as a thickener, binder of free water, stabilizer, emulsifier • For many years Guar Gum was the cheapest hydrocolloid in the world • Generally adequate supply to meet all demand • Relatively stable pricing • Hence wide application in the food industry

  4. Traditional food uses of Guar Gum

  5. Guar Splits Price Movement

  6. Reaction of Guar Gum users • There were and are alternatives to Guar Gum • Changing from one ingredient to another in food products is not easy but can be done • Food users started working on alternatives and changes to their recipes by the middle of 2011 • All efforts paid by due to the fantastic rise in prices over the next 9 months

  7. Reaction of Guar Gum users Guar Gum users in the food and pet-food industry responded to this challenge by: • Reducing inclusion rate • Combining Guar Gum with alternative products • Replacing Guar Gum completely As a result Guar Gum usage went down by 50% to 75% across the food industry!!

  8. Alternatives to Guar Gum

  9. Pricing of alternative products

  10. What’s happening now? • Guar splits prices have declined nearly 85% from their peak • Users are taking their time in moving back to Guar Gum as they fear that prices might again shoot up due to oil demand and/or price manipulation • Industry might regain 40% to 50% of the lost demand if prices remain relatively stable at current levels

  11. Guar Gum pricing going forward • Prices should not go back to historical lows • Prices should be more competitive against alternative products and the price range should not be very wide • Price range of USD 2.5 – 3.0 per kg could be the ideal range going forward

  12. Premcem Gums’ Background • Established in August 1960 • One of the pioneer producers & exporters of Guar Gum • Headquartered out of Mumbai • Three manufacturing facilities in Gujarat • Total installed capacity – 20000 MT (44M lbs) annually • Supply Guar Gum for a wide range of applications/industries such as hydraulic fracturing in shale oil/gas, processed food, pet-food, mining, explosives, etc.

  13. Thank you! Premal Joisher Director Premcem Gums Pvt. Ltd. +91-98201-02977 premal@premcemgums.com www.premcemgums.com

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