Cargill India is set to invest $35 million in acquiring and upgrading an edible oil refinery in Nellore in Andhra Pradesh. The facility is expected to be fully operational by May 2022 and will significantly increase its edible oil production capacity and footprint in southern India.
The move is also expected to strengthen its existing supply chain to meet growing customer demand, especially its expanded offerings to Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, the company said in a media release.
Cargill said the newly acquired refinery gives the capability to supply refined palm oil, palmolein, vanaspati (hydrogenated vegetable oil) and sunflower oil. It also allows the company to produce and package its own edible oil brands for retailers and to better serve bakery and foodservice customers in the region.
“We have driven significant growth of our edible oils business in India over the last few years. This acquisition propels our expansion, specifically in southern India, and demonstrates our commitment to India and our customers in the country,” said Piyush Patnaik, managing director of Cargill’s edible oils business in India.
The acquisition is aligned with Cargill’s localised market approach for Asia that will drive global growth in food and agriculture. The company has been consistently working to modernise the business and investing in expanding its footprint, he said. In its statement, the company said it is in the edible oils business in India since 2001. It processes, refines and markets a wide range of indigenous and imported edible oils and fats, catering to the food industry as well as household consumers.