Cargill to build $96m corn mill in India

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Publish time: 21st April, 2015      Source: www.cnchemicals.com
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April 21, 2015
   

Cargill to build $96m corn mill in India
   
   
   
   


Cargill will build a new US$96.38 million corn-milling facility near Bangalore, India, which is expected to be operational by the second half of next year.

   


The plant is CargillIndia''s first major expansion project in a decade, and supposedly its biggest investment in the country so far.

   


It is set up to process corn for the production of "glucose and other derivatives which will be used as sweeteners, thickeners and for other purposes in the food and healthcare industries", said Cargill India chairman Siraj Chaudhry.

   


The initial investment for the new corn mill is estimated to reach US$ 64.29 million to be funded through internal accruals.

   


The new mill, spread across 44.5 acres, will be located in the heart of corn growing areas at Davanagere in Karnataka. Cargill India director and business head B. K. Anand said only 50% of the mill''s capacity will be utilised on its first year of operation.

   


The full capacity would be tapped over the next three years.

   


A grain storage facility will be set up around the plant.

   


Officials said the company will rely on local procurement for its corn. The full capacity of the new corn mill would be around 300,000 tonnes. While the output from the new mill would be largely used for the local market, around 10% of the output is expected to be exported to Africa and the Middle East.

   


The Indian subsidiary of the $134.9 billion-by-revenue American multinational has three edible oil refineries in India-at Paradip in Odisha, Kandla in Gujarat, and Kurkumbh in Maharashtra.

   


Cargill India has also been reported to be planning to put up a US$ 16 million animal feed mill in Bhatinda, Punjab.

   


The subsidiary has seven animal feed manufacturing units in India. The country''s feed additives market is expected to show high growth rates fuelled by the rise in population, increased demand for animal produce, favourable demographics and higher disposable incomes.