Food major Cargill has acquired an edible oil refinery in Nellore, Andhra Pradesh. The company said this $35 million investment to acquire and upgrade the facility will significantly expand its edible oil production capacity and footprint in southern India.
This will also 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 serve bakery and foodservice customers in the region. The refinery expands Cargill’s offerings into Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.