Global agri major Cargill buys edible oil refinery in Nellore for $35 mn

The investment will expand Cargill's edible oil production capacity and footprint in southern India and strengthen its existing supply chain to meet growing customer demand

American agri-business major Cargill has acquired an edible oil refinery located in Nellore in Andhra Pradesh for $35 million.

The $35 million investment, to acquire and upgrade the facility, will expand Cargill's edible oil production capacity and footprint in southern India and strengthen its existing supply chain to meet growing customer demand, the company said in a statement. The facility is expected to be fully operational by May 2022.

 “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 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 foodservice 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,” Patnaik added. “This acquisition aligns with our tailored and localized market approach for Asia that will drive global growth in food and agriculture.”