Cargill invests $35mn in Krishnapatnam Port edible oil refinery
To better serve its oil customers in the country, Cargill has acquired an edible oil refinery located at Nellore in Andhra Pradesh. Cargill’s US$35 million investment to acquire and upgrade the facility will significantly expand its edible oil production capacity and footprint in southern India.
Cargill has acquired an edible oil refinery located at Nellore in Andhra Pradesh to better serve its oil customers in the country.
Cargill’s US$35 million investment to acquire and upgrade the Krishnapatnam Port edible oil refinery will significantly expand its edible oil production capacity and footprint in southern India and strengthen its existing supply chain to meet growing customer demand. The facility is expected to be fully operational by May 2022.
Highlighting the significance of this acquisition, Piyush Patnaik, managing director of Cargill’s edible oils business in India, said, “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.”
The newly acquired refinery gives Cargill the capability to supply refined palm oil, palm olein, vanaspati (hydrogenated vegetable oil) and sunflower oil, which accounts for nearly two-thirds of the country’s sunflower oil consumption and is currently being underserved.
This facility also allows Cargill to produce and package its own edible oil brands for retailers and to better serve bakery and food service customers in the region. The refinery expands Cargill’s offerings into Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
“We are consistently working to modernize the business and investing in expanding our footprint while delivering distinctive value to our customers,” said Patnaik. “This acquisition aligns with our tailored and localized market approach for Asia that will drive global growth in food and agriculture.”
Cargill has operated its 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. It offers a host of leading edible oils and fats brands such as NatureFresh, Gemini, Sweekar, Leonardo, Rath and Sunflower that cater to over 100 million consumers across the country.
