Cargill has inaugurated a new corn milling plant in Gwalior, set up by Saatvik Agro Processors, to cater to the growing demand from India’s confectionery, instant formula and dairy sectors.
Cargill has a business arrangement with Saatvik Agro, which has established this dedicated production facility for starch derivatives with an initial output capacity of 500 tonnes per day that can be expanded to 1,000 tonnes per day.
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This facility 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, the company said in a statement.
This will further increase 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. While the facility will cater primarily to domestic demand, in future Cargill will also evaluate export opportunities to expand its market reach through this plant.
The plant was inaugurated by John Fering, Group President, Food APAC, Cargill and Simon George, President Cargill India and Managing Director Food South Asia.
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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.”
With a combined market value of $15 billion, the Indian confectionery, instant formula and dairy sectors are witnessing high annual compounded growth rates of between 6 and 11 per cent 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, fillings, yogurt, cheese, processed milk and infant formula, the company said.