Edible oil manufacturer BN Group is set to invest approximately $1 billion over the next five years to solidify its presence in Africa, said Anubhav Agarwal, CEO & MD of BN Group.
The company has already established an office in Tanzania and plans to allocate $400 million to build three manufacturing plants with capacities of 1,200 tons, 500 tons, and 300 tons, respectively. The remaining investment will fund the acquisition of plantations. Operations are expected to commence in the fourth quarter of FY 2026-27.
BN Group plans to cater to local consumer preferences by introducing palm oil products in three sizes—5L, 10L, and 15L—at competitive prices. Initially, the company will adopt a direct-to-store strategy before transitioning to distribution through distributors.
In addition to palm oil, BN Group aims to produce and market by-products such as soaps. The company expects to capture a significant share of Africa’s emerging markets, projecting EBITDA margins of 20-25%—a stark contrast to the 5% typically seen in India for agricultural commodities.
With a presence in five countries globally, BN Group anticipates its African operations to contribute $2 billion of its projected $3 billion revenue by 2030. For FY 2024-25, the company aims to achieve $1 billion in revenue, with EBITDA margins between 4.5% and 5%.
This ambitious expansion is poised to establish BN Group as a key player in Africa’s edible oil market while strengthening its global footprint.