Cargill India inaugurated its first corn silo in the country in Davangere, Karnataka in September 2019. With an investment of USD 10 million, that is, INR 70 crore, the company has paved its way into bulk agricultural storage in India.
The silo is built with a storage capacity of 60,000 tons and is situated next to a corn milling plant opened by Cargill in 2016. The strategic location of the silo will allow companies access to high-quality raw material, which will be stored at a specific temperature to prevent contamination of corn, further using it to produce superior quality food products. The plant will also facilitate the growth of local community and farmers by providing them with increased market access due to the company’s policy of procuring corn locally.
This silo is expected to enhance Cargill’s supply chain capabilities in India. Also, the establishment of silo will help the company to expand its footprint in the Starches and Sweetener business by ensuring a continuous supply of good quality corn to the plant. Moreover, in Davangere, the majority of population belonging to the local community is involved in corn farming to earn their livelihood. With this, the opportunities for local farmers to sell their produce will enhance, thus, helping them align better with the market trends.
Cargill started operating in India in 1987, serving businesses in refined oils, food ingredients, grain and oilseeds, cotton, animal nutrition, bio-industrial and trade structured finance. Cargill is a leading company, providing food, agriculture, financial, and industrial products and services to the people all around the world. The company aims to provide nourishment to the people around the world in a safe, responsible and sustainable way. The company believes in sustainable product development and building a stronger, sustainable future for agriculture.
In November 2017, Cargill announced that it will invest USD 240 million, equivalent to INR 1500 crores, in India over the next 5 years. This investment has added to the economic development of the country, providing better growth opportunities to the food processing and agriculture industries. Cargill’s core businesses include, edible oil, cocoa and chocolates, starches and sweeteners and animal nutrition in India. It is expected that this move will generate employment opportunities for nearly 1,300 people and help farmers in the country. After this announcement, in January 2018, Cargill opened its first dedicated fish feed plant in the city of Vijayawada, tripling fish feed capacity for farmers and generating around 200 new jobs in the region. The mill was obtained from Mulpuri Foods & Feeds and reflected the company’s commitment to provide farmers with high-quality and safe aqua feed solutions. This move also served as an important step in developing Cargill’s aqua feed business in India and across Asia.
With the growing population and changing consumer preferences in India, the region has become an important market for the company. This increased investment demonstrates the commitment of Cargill to enhance its business, further aiding in the development of agriculture and food processing industry in the country.