Ace International raises ₹305 cr to build dairy nutrition hub in Andhra

Funding from FMO, responsAbility, Incofin, and Fiedlin will back a greenfield facility in Kuppam, aimed at high-performance, customised nutrition ingredients

Ace International Limited, the food and nutrition ingredients company, has raised ~305 crore from Dutch entrepreneurial development bank FMO, Swiss investment firm responsAbility, Belgium-based investment firm Incofin, and Fiedlin Ventures.

 

The capital will support the establishment of a greenfield, fully-integrated dairy ingredients and nutrition facility and complex in Kuppam, Andhra Pradesh.

 

“This partnership is more than just funding, it’s an accelerator of purpose,” said Sanjeev Goyal, founder and chairman, Ace International.

 

“We’ve built ACE around one belief, that innovation in food technology can drive both better business outcomes and better nutrition for all. With this investment, we’re ready to take that vision global,” he said.

 

The Kuppam facility will pioneer cutting-edge dairy nutrition processing technology being introduced in Asia for the first time.

 

This advanced manufacturing unit will be among a handful of such facilities globally, capable of producing bespoke, high-performance nutrition ingredients that meet the evolving needs of global food and nutrition brands. Designed for agility and innovation, the site will strengthen ACE’s manufacturing footprint, enabling faster scale-up and diversification into new product categories.

 

The aim is to serve a burgeoning demand for high performance and customised nutrition in India and globally.

 

Peter Bryde, director for private equity at FMO, said the investment in Ace fits FMO’s strategy to invest in sustainably managed businesses that focus on value creation in the food sector.

 

“The consortium’s investment will enable the company to further expand its smallholder farmer supply chain from some 49,000 smallholders now to more than 80,000 by 2030,” said Bryde.

 

Strategically located within a thriving agri ecosystem and supported by robust logistics infrastructure, the Kuppam complex will engage more than 40,000 farmers. This includes a significant proportion of women — through inclusive sourcing partnerships that enhance rural livelihoods and advance gender equity across the supply chain.

 

Akshay Dua, investment director for sustainable food private equity at responsAbility said Ace has an impressive mix of decades-long pedigree in raising India’s nutrition industry to global standards, not just being cost-competitive, but also with

an unwavering commitment to sustainability, carbon neutrality, and responsible sourcing.

 

Wim Wienk, director at Fiedlin Ventures, said Ace is backed by fully-integrated business model from responsible sourcing

to end-product delivery. This makes it uniquely positioned to expand its portfolio of tailor-made food solutions that address evolving customer demands.

 

“The partnership and planned greenfield expansion will establish Ace as a cornerstone in the rapidly advancing modern food industry,” said Wienk.

 

Over the past three decades, Ace has evolved from a family-owned enterprise into an end-to-end food ingredient player servicing multiple product segments like nutraceuticals, infant and sports nutrition, medical foods, beverages, and confectionery.

 

At the core of Ace’s growth strategy lies its advanced processing and innovation capability, combining automation, precision engineering, and responsible sourcing to deliver consistent quality at scale. Its R&D teams focus on developing next-generation nutrition formats, from fortified powders and functional ingredients to specialised formulations that enhance health and wellness.