‘Proposed land price substantially higher than discussed’: France ra ...
France’s Soufflet Malt’s proposed €100 million investment in Rajasthan has hit a roadblock over land acquisition. It has led to diplomatic intervention even as the company doubles down on India as a key growth market.In a letter dated March 20, 2026, the French Ambassador to India raised concerns with the Rajasthan Chief Minister over delays and revised terms by the Rajasthan State Industrial Development and Investment Corporation (RIICO). The project, which aims to build a large malt production facility in the state, is now facing uncertainty.
EMBARRASSMENT is the new Normal. #Rajasthan pic.twitter.com/og2NwU1RnI
— Avinash Kalla (@avinashkalla) March 27, 2026 What does the letter explain?
“I would like to inform you that… the company has unfortunately not yet been able to secure the land,” the Ambassador wrote, pointing to a gap between earlier discussions and the latest offer from RIICO.
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The letter further noted that “RIICO has recently proposed the allocation of the land at a price that appears substantially higher than what had been discussed,” while also pushing timelines for allotment to “end of December 2026.” These changes, the Ambassador warned, “place the project at serious risk and create uncertainty regarding its implementation.”
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Seeking a resolution, the French side has requested a fresh meeting with the Chief Minister. “The company remains fully committed to the project and stands ready to meet at any time of your convenience,” the letter added.
Big India bet amid global shift
The land dispute comes at a time when Soufflet Malt, the world’s largest malt producer and part of France’s InVivo group, is accelerating its push into emerging markets like India, even as it restructures operations in Europe due to falling beer consumption.
The proposed Rajasthan facility is expected to produce 110,000 metric tonnes of malt annually in its first phase by early 2028, with plans to double capacity later if demand continues to grow.
Soufflet Malt CEO Jorge Solis, who was in India during French President Emmanuel Macron’s recent visit, had said that the opportunity, saying India is “one country where we see really a big growth coming.”
The company already operates a smaller malt house in Rajasthan with an 18,000-tonne capacity, sourcing barley locally and supplying brewers such as United Breweries, controlled by Heineken.
Beyond beer, Solis also flagged whisky as a major driver, noting India is the world’s largest whisky market.
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