Cargill unveils major Indian investment with corn milling plant for confectionery
Growing demand for confectionery and other food segments has seen Cargill inaugurate its latest Indian corn million plant, based in Gwalior, Madhya Pradesh, reports Neill Barston.
As the company noted, the installation was set up by local manufacturer Saatvik Agro Processors, an Indian manufacturer, with the combined potential to serve across sweets, snacks, dairy as well as infant formula application, for a total market worth $15 billion across those sectors.
According to the company, these market segments are experiencing high annual compounded growth rates of between 6 and 11% over next five years, leading to increased demand for starch derivatives which are used as thickening or stabilising agents to achieve desired texture, viscosity and mouthfeel in consumer products like gummies, jellies and fillings.
Notably, as the business confirmed, it has an existing arrangement with Saatvik, which has established this dedicated production facility for starch derivatives with an initial output capacity of 500 tons per day, which can be expanded to 1,000 tons per day.
An inauguration event was led by John Fering, Group President, Food APAC, Cargill and Simon George, President Cargill India and Managing Director Food South Asia, for what is anticipated to be a strategically significant regional facility.
The site combines Cargill’s global product capabilities, customer network and market access opportunities with local manufacturing capabilities and operational know-how of the Indian partner to bring a consistent supply of safe, high-quality solutions to Cargill’s food manufacturing customers in India.
As the business revealed, the plant will operate on an exclusive arrangement for Cargill, adhering to the company’s stringent global food safety and quality standards while also driving innovation, and process efficiencies for the industry. This further increases Cargill’s production capacity in India while creating supply chain efficiencies that food manufacturers rely on to meet growing consumer demand. The expansion will also enable Cargill to serve customers across North, Central, and Western India more effectively, reducing dependence on supply from the South, optimising both costs and logistics.
Commenting on the launch, Simon George said: “This Gwalior plant allows us to strengthen our manufacturing network in India to serve customers from North and West India more competitively while enhancing supply chain efficiencies that benefit the entire food ecosystem. By increasing our access to local manufacturing capabilities, we are reducing supply timelines, increasing cost-effectiveness, and ensuring a more stable supply of essential food solutions that food manufacturers need to meet evolving consumer preferences.”
Furthermore, “this step reflects our commitment to fostering industry growth by integrating our global expertise with India’s strong manufacturing capabilities, supporting the growth of Indian entrepreneurs, ultimately creating more value for customers and consumers alike”, he added.
As the company added, the investment underlined its investment and status as a partner within the region for the wider food sector, with the company recognising the potential for its fast-developing food and beverage market.
