The Jadcherla facility will primarily cater to India first and subsequently will look to supply markets such as Bangladesh, Nepal and Sri Lanka.
Nutreco began operating in India in 2013. Prior to the establishment of this new premix manufacturing facility, business at Trouw Nutrition India was based on the management of animal nutrition product imports from the Netherlands and Indonesia, working with distributors and key accounts.
The company also operates lab services for feed customers in Hyderabad. Its MasterLab conducts varied analytical assays for complete feed, raw materials and water.
Construction began on the new premix facility in 2018. The entire manufacturing process at the site in Jadcherla is automated - from raw material handling to bagging, said the company. The plant, set to be inaugurated on December 7, is expected to reach full capacity utilization in 2025.
Jadcherla is in the Indian state of Telangana. Dr Saurabh Shekhar, managing director, South Asia, Nutreco, said that state was an apt choice considering its easy accessibility and also because it is investor friendly.
“From a market perspective, it’s a major poultry and aqua belt with logistical access to good ports,” he added.
He said the company sees huge potential in the Indian market, with forecast growth rates for a range of animal protein sectors there surpassing those set for other markets, globally.
“Asia and India are key to achieving our mission of Feeding the Future. We already have plants in Japan, China, Indonesia, Vietnam and Myanmar to strengthen our presence in Asia. Establishing a state-of-the-art production facility at Jadcherla, Hyderabad is our way of reinforcing our commitment to South Asia and Indian markets. This is just the beginning of our journey to gain a strong foothold here,” commented Jurriën Zandbergen, managing director, Nutreco Asia.
Nutreco outlined how it has both organic and inorganic growth plans to expand its footprint in the region.
The Dutch group has already been investing in startups in South Asia. In 2018, NuFrontiers, the investment arm of Nutreco, took a stake in India-based Internet of Things (IoT) company, Eruvaka, which develops connected devices and mobile-based decision tools aimed at helping shrimp farmers increase productivity.