VIJAYAWADA: US food major Cargill has acquired an edible oil refinery located in Nellore district. Cargill’s $35 million investment to acquire and upgrade the facility will increase its edible oil production capacity and help the company 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 the acquisition, Piyush Patnaik, managing director of Cargill’s edible oils business in India, said, “We have driven significant growth of our edible oil business in India over the last few years. This acquisition propels our expansion, specially in Southern India, and demonstrates our commitment to 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. This facility will allow Cargill to produce and package its own edible oil brands for retailers and other customers in AP, Telangana, Karnataka and Tamil Nadu.“This acquisition aligns with our tailored and localised market approach for Asia,” Patnaik said. Cargill has started its edible oil business in India in 2001. NatureFresh, Gemini, Sweekar, Leonardo, Rath and Sunflower are some of its brands.