Cargill acquires edible oil refinery in Nellore
Cargill on Tuesday announced the acquisition of an edible oil refinery located in Nellore district in Andhra Pradesh.
Hyderabad: Cargill on Tuesday announced the acquisition of an edible oil refinery located in Nellore district in Andhra Pradesh.
The company said its $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.
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 modernise the business and investing in expanding our footprint while delivering distinctive value to our customers," said Patnaik. "This acquisition aligns with our tailored and localised market approach for Asia that will drive global growth in food and agriculture."