Cargill $35M investment in Krishnapatnam Port oil refinery in South India enhances customer offering
01 December 2021, New Delhi: To better serve its oil customers in the country, Cargill has acquired an edible oil refinery located in Nellore, State of Andhra Pradesh, India. 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 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 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,” said Mr. 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. Cargill 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. Cargill 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.