Cargill invests US $15 million in new bioindustrial plant in India

Carfe bypass fats to serve Indian dairy farmers by improving milk productivity

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Cargill
Photo by Theo Leconte on Unsplash

India has been the largest milk producer in the world for over two decades. However, milk productivity per animal is still low in comparison to the world average. Enhancing milk production has been a priority to grow farm income and the Indian dairy sector’s global competitiveness. To address this need, Cargill has opened a high-pressure hydrogenation plant in Kurkumbh, Maharashtra, to manufacture bypass fat, a health and nutrition supplement for dairy cattle. It will be launched and marketed under the global brand Carfe, which is technologically advanced, providing better digestion and more energy to the cattle.

According to Cargill, Carfe has proven to substantially improve the quality of nutrition for dairy cattle, resulting in better reproductive health and milk production, translating to improved farmers’ earnings. This product is already available in developed dairy cattle markets worldwide. It will now be locally manufactured at Cargill’s new bioindustrial plant in Kurkumbh and made available to dairy farmers and feed manufacturers in India.

Built with an investment of US$ 15 million (approximately Rs 110 crore), the plant has an annual capacity of 35000 tons, making it one of the largest facilities to manufacture bypass fats and specialty waxes in the country. This investment leverages Cargill’s global presence in the agriculture supply chain, expertise in bioindustrial manufacturing technology, and reach and market coverage in dairy nutrition in India, to bring a best in class solution for dairy farmers in India. This plant will also manufacture specialty vegetable oil-based waxes for industrial application, marketed under Agri-Pure’s brand name, which has applications in the tyre, plastic, and candle industry.

“This launch is in line with our ambitions of continuing to remain the leading supplier and trusted partners for feed millers and farmers in the country. Our long-term experience in bypass fats and specialty waxes, combined with our local insights and this investment will go a long way in demonstrating our commitment to the country, in keeping with our organizational goal of nourishing the world. It also demonstrates our commitment to supporting the local economy with the addition of 50 new manufacturing jobs,” said Keerthy Pethaiyan, regional director, Cargill Bioindustrial, India.

Cargill’s bioindustrial business has a leading presence in sustainable bio-based products, including Distilled Fatty Acids used by the paints, inks, and coatings industry in India. In 2016, Cargill set up a plant in Maharashtra simultaneously to manufacture FR3 (natural ester dielectric fluid), which is used in transformers. Today it has a strong position in the natural ester-based dielectric fluid market – with FR3 having substantial brand equity. With this investment, Cargill is further expanding its presence in the bioindustrial sector locally to fuel growth ambitions in the country, while supporting growth opportunities globally.

“India is a key growth market for Cargill and line with our commitment to the country, this marks a continuation of our investment in India. By building upon our operations at this facility, we will increase our regional footprint and enhance our local capabilities to better support the needs of our local customers as well as multi-national customers across the globe,” said Kurtis Miller, global managing director, Industrial Segment, Cargill Bioindustrial.

Cargill in India

In India, Cargill started operations in 1987. It has businesses in refined oils, food ingredients, grain and oilseeds, cotton, animal nutrition, bioindustrial, and trade structured finance. Cargill in India markets leading consumer brands of edible oils such as Nature Fresh, Gemini, Sweekar, Leonardo Olive Oil, Rath, and Sunflower brand of hydrogenated fats. It also markets wheat flour under the Nature Fresh brand name.

Cargill’s animal nutrition business provides feed, premix, additive, and animal health products and solutions for aqua, dairy, and poultry. It markets animal feed and premix under the Provimi, Purina, and EWOS brands. The Cargill’s grains and oilseeds crush business originates grains and oilseeds. Overall, the company employs more than 4,000 employees working across offices and plants and a network of offices, warehouses, and depots.

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