Bareilly-based BL Agro is planning to invest Rs 7,000 crore in Tanzania over the next decade across edible oil refining, cattle breeding and agriculture, as it looks to build an integrated food and agriculture business in East Africa.
Managing director Ashish Khandelwal said that the the first project will be a Rs 1,200-1,500 crore vegetable oil complex with a capacity of 1,100 tonnes per day, expected to be commissioned within three years. The investment will be rolled out in phases. A Rs 2,000 crore cattle-breeding project is planned over seven years, and a further Rs 1,500 crore is earmarked for agriculture-related infrastructure, including local tractor manufacturing.
“We are trying to replicate a similar model in Tanzania to what we are doing here in India,” Khandelwal said. The company intends to combine local agricultural resources with Indian technology, processing expertise and manufacturing capabilities.
Starting with refining
The oil complex will include crushing, solvent extraction and refining facilities, an expansion beyond BL Agro’s Indian operations, where it does not run solvent extraction plants. Land has already been allotted and registration is complete. The project is now awaiting certain approvals.
Farming and productivity
BL Agro has also been allocated land for agriculture, with discussions covering about 7 lakh hectares. Around 3.5 lakh hectares could be needed for year-round operations, including export-oriented vegetables and other identified crops.
The company will source oilseeds locally while building its own cultivation capabilities. Tanzania’s sunflower yields average around 800-900 kg per hectare, against roughly 2.5 tonnes in India. Khandelwal said the company has committed to helping improve productivity, but will need about three years to assess soil conditions and work out achievable yields.
Jobs and funding
The projects are expected to create around one lakh jobs across agriculture, processing, manufacturing and allied activities. BL Agro has registered its entity in Tanzania under its own name, with Nourish expected to be the consumer-facing brand.
The initial investment will come from internal resources, and the company is also exploring support from Tanzanian stakeholders. An IPO is on the cards, but only as “just an idea at this stage,” Khandelwal said. A listing would not come before FY29, with an issue size of around Rs 10,000 crore under consideration, subject to market conditions.
Returns and revenue
Meaningful revenue from Tanzania is expected to begin around 2030, given the time needed to set up processing and packaging infrastructure. The overall investment could break even within seven years, depending on how the projects progress.
BL Agro reported group business of about Rs 15,000 crore last year and expects to cross Rs 30,000 crore by FY29, ahead of its earlier 2030 target. The cattle-breeding segment alone is expected to generate around Rs 15,000 crore, though Khandelwal cautioned that detailed projections for the international businesses are not yet final.
Slowing down at home
“We have largely completed what we wanted to do in India, so we will slow down our expansion here,” he said. In the domestic market, the company will focus on balance-sheet quality, profitability and operational performance.
The move marks a shift in strategy, from strengthening its Indian food businesses to building an international platform spanning agriculture, animal husbandry and food processing.