Global agribusiness giant Cargill has acquired an edible oil refinery in southern India, the company announced on 30 November.
The company said its US$35M investment to acquire and upgrade the Krishnapatnam Port refinery in Nellore, Andhra state, would significantly expand its edible oil production capacity in southern India and strengthen its existing supply chain to meet rising demand.
“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,” Piyush Patnaik, managing director of Cargill’s edible oils business in India, said.
“This acquisition aligns with our tailored and localised market approach for Asia that will drive global growth in food and agriculture.”
Due to be fully operational by May 2022, the acquisition would give Cargill the capability to supply refined palm oil, palm olein, hydrogenated vegetable oil (HVO), and sunflower oil, the company said.
The facility would also allow Cargill to produce and package its own edible oil brands for retailers and to better serve bakery and foodservice customers in the region, according to the statement, expanding its products into Andhra Pradesh, Telangana, Karnataka and Tamil Nadu states.
Cargill has been active in the edible oils sector in India since 2001.