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BL Agro, the Indian edible oil and food products manufacturer, has unveiled an ambitious plan to invest approximately $739 million (70 billion Indian rupees) in Tanzania over the next decade. This strategic move by the Khandelwal family-led enterprise aims to establish a comprehensive footprint in the East African nation, spanning the edible oil, dairy, and agricultural sectors.
The long-term investment programme is designed to integrate Tanzania’s vast agricultural resources with BL Agro’s advanced processing technologies. The initiative will encompass edible oil production—specifically focusing on sunflower oil—alongside dairy farming, animal husbandry, agricultural research, and food manufacturing. Tanzania is expected to serve as the company's primary gateway to the broader East African market.
A core component of the plan involves developing localized vegetable oil processing facilities. By utilizing domestic crops such as sunflower seeds, BL Agro intends to meet rising local demand while increasing the value-added processing of agricultural goods within Tanzania. The first vegetable oil complex is slated to become operational within three years, potentially transforming the country from a raw crop exporter to a refined product hub.
Ashish Khandelwal, Managing Director of BL Agro, highlighted that the investment aims to boost productivity in Tanzania’s agricultural and livestock industries through technology transfer and industrial expertise. He emphasized the creation of long-term local partnerships and contract farming arrangements to link Tanzanian farmers directly with the proposed processing units.
The announcement follows a visit to Tanzania by a high-level BL Agro delegation to consult with government stakeholders. Tanzania’s High Commissioner to India, Anisa K. Mbega, welcomed the initiative, noting its potential for job creation, skill development, and increased income for local farmers through domestic processing rather than exporting unprocessed commodities.
Beyond oils, the company plans to explore modern dairy infrastructure and cattle breeding, creating a unified supply chain from production to distribution. This expansion is part of BL Agro’s broader objective to reach an annual group revenue of $3.17 billion (300 billion Indian rupees) by 2030. The company currently operates established brands such as 'Bail Kolhu' for oils and 'Nourish' for packaged foods including flour, rice, and pulses.
Source: Business Insider Africa