Cargill sinks $20m in new India-based premix, supplement facility

By Aerin Einstein-Curtis contact

- Last updated on GMT

Cargill invests in new premix facility in India © GettyImages/SeventyFour
Cargill invests in new premix facility in India © GettyImages/SeventyFour

Related tags: Cargill, India

Cargill seeks to support its presence in the Indian market with a $20m investment in a new premix and supplement manufacturing facility.

The company announced Wednesday [February 6] that it would be investing $20m (Rs 140 crores) in the new facility. The project is part of a previously shared $240m commitment​ to expand Cargill’s presence in India.  

The new premix greenfield plant will be located in the northern Indian state of Rajasthan, Cargill said in a statement provided to us. The timeline for the building project and additional details are in development and are not being shared at this time, a company spokesperson said.

The planned premix and supplement facility is expected to provide for customers in the region, the Minnesota-based agro-giant said. However, it also will be generating feed additives for use throughout the northern part of India, and fill some export market needs.  

Within the region, the investment is intended to help grow industry and the “animal husbandry sector”​ along with supporting livestock producers, farmers and the community around Kota, the company said. The project is anticipated to bring more than 150 jobs to the region through direct and indirect employment in the next three to five years.

Facility details 

The upcoming premix facility is set to be located on a 15-acre parcel in Tathed Village in the Kota District within Rajasthan, Cargill said. The site for the upcoming premix facility was selected because the state is one of the more progressive areas in the country.

“India is an important and fast growing compound feed market,”​ said Imre Havasi, managing director with Cargill Animal Nutrition.

The region also provides a known business environment, necessary talent, access to raw materials and a customer base, the company said.  

When operation, the plant will generate 7,500 tons of animal nutritional products or supplement on a monthly basis, the company said.  

Past investment in India

In November 2017, Cargill said at the World Food India Conference that it planned to invest $240m (about Rs 1500 crores) in India throughout the following five years. The financial commitment was focused on addressing the agricultural and food processing industries.

India is an “important market”​ for Cargill, said Peter Van Deursen, CEO of Cargill Asia Pacific, at the announcement.

Animal nutrition was among the areas Cargill highlighted for developed at that time, the company said. It was estimated that the overall project would employ about 1,300 people and support Indian farmers.

“This investment reinforces how important India is to Cargill, overall, and to our animal nutrition business,”​ a Cargill spokesperson told us at the time.

Prior to the announcement, Cargill had opened an initial wet corn milling facility and a new dairy feed mill, the company reported.

More recently, Cargill opened its first fish feed mill ​in India. That facility is focused on feeds for warm water species and started production in January 2018.

The new facility tripled the company’s fish feed production ability in the country, it said.

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