Cargill on Tuesday said it is investing $35 million on acquiring and upgrading an edible oil refinery in Nellore in neighbouring 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 would also strengthen existing supply chain to meet growing customer demand, especially expand the offerings into Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, the company said in a release.
Cargill said the newly acquired refinery gives 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 food service 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 tailored and localised market approach for Asia that will drive global growth in food and agriculture. The company is consistently working to modernise the business and investing in expanding footprint, he said.
The company said it is into 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.
