VIJAYAWADA: Andhra Pradesh is emerging as a hub for edible oil refinery units due to developments in port infrastructure and connectivity to countries like Indonesia and Malaysia. In Krishnapatnam port alone over 10 edible oil refining companies are operational.
Recently, Minister for Agriculture Kakani Govardhan Reddy has inaugurated projects worth Rs 650 crore which will provide employment to 2,120 people, besides significantly strengthening the food processing sector, particularly edible oil refinery sector.
ANA Oleo Private Limited is an Indian subsidiary of a Singapore-based company ANA International Pte. Ltd. It has invested Rs 650 crore to set up a state-of-the-art edible oil manufacturing unit as well as Oleo chemical processing units as a greenfield project. According to food processing department officials, this unit, strategically located in the vicinity of Krishnapatnam port in Nellore district will provide employment to more than 2,100 people.
There are around 30 oil refineries and related companies in the State and of them eleven are in Krishnapatnam area including ANA Oleo Private Limited. Others include Cargill, Agrawal Industries Limited, South India Krishna Oil and Fats limited, Emami Agrotech Limited, Adani Wilmar Limited, Gemini Edibles and Fats India Private Limited, Santhoshimathaa Oils and Fats Private Limited, and Universal Biofuels Limited.
Seven edible oil industries were set up under the AP Industrial Investment Promotion Policy 2010-15. In a project feasibility report of Krishnapatnam port in 2020, it was estimated that edible oils imported to the port are likely to cross 3 million tonnes per annum mark.
Exploiting the strategic location of the Krishnapatnam port, the oil refinery companies unload the crude palm oil directly from the ships through pipelines connected to the refineries. Later, the units sell the refined oil largely across the Southern and Eastern part of India. In fact in this financial year alone, two more edible oil refineries were inaugurated in the State, including Godrej Agrovet in Eluru district with an investment of Rs 100 crore, Gokul Agro in Nellore district with Rs 250 crore investment.
According to the Agriculture Minister, AP has majorly attracted investments pertaining to edible oil refinery (Godrej Agrovet, Gokul Agro, ANA Oleo), chocolate processing (Mondelez, DP Cocoa), coffee processing (Continental Coffee Pvt Ltd) and others, during Global Investor Summit-2023.
Development of ports like Mulapaeta, Machlipatnam, Kakinda Gateway, Ramayapatnam port would give much needed impetus to this sector.