Bareilly-based BL Agro announces ₹7,000 crore investment in Tanzania over 10 years

Bareilly-based FMCG player BL Agro has announced its entry into the global market with a planned investment of ₹7,000 crore in Tanzania over the next 10 years. The capital deployment will span edible oils, dairy, agriculture, research, and manufacturing, serving as part of the company's broader ambition to scale into a ₹30,000 crore group by 2030.

Managing Director Ashish Khandelwal stated that the investment is aimed at building long-term partnerships, generating value for local communities, and bringing Indian industry expertise, technology, and experience to Tanzania. Tanzania was chosen as the company's first overseas destination due to its large land bank and favourable climate conditions.

The Tanzanian government is offering 7 lakh hectares of land at concessional rates on a 99-year lease. Additionally, the government will participate as a joint venture partner on a portion of the land designated for agriculture and livestock activities. Initially, the project will be funded through internal accruals, while bank loans at subsidised rates and a public listing are also being explored as future funding routes, though IPO plans remain at a nascent stage.

In the first phase, BL Agro will invest approximately ₹1,500 crore to establish a vegetable oil complex with a processing capacity of 1,100 tonnes per day. The facility will primarily focus on sunflower oil production, leveraging local seed availability. Products from this plant will be sold under the 'Nourish' brand. According to Khandelwal, Tanzania's current daily edible oil demand stands at around 1,100 tonnes, and initial production will cater solely to the local market before expanding supplies to neighbouring countries.

Over the 10-year period, the company will allocate around ₹2,000 crore to introduce India's cow breeding and genetics programme in Tanzania. Current milk productivity in Tanzania averages 1-1.5 litres per cow per day, compared to 7-8 litres in India. BL Agro plans to deploy Gir cows to improve local productivity.

The company also aims to address low crop yields in Tanzania, which currently stand at 800-900 kg per hectare compared to 2-2.5 tonnes in India. BL Agro plans to develop farm instruments, tractors, and machine parts locally, and is currently in talks with manufacturers to support farm mechanisation.

Anisa K Mbega, High Commissioner of the United Republic of Tanzania to India, welcomed the proposal, noting that the collaboration will bring valuable technology, create jobs, nurture skills, and empower local farmers through value addition.

BL Agro operates through flagship mustard trading and FMCG businesses with distribution networks for products sold under the Bail Kolhu and Nourish brands. Its subsidiaries include Leads Connect Services, an agri-tech data analysis and risk management firm, and Leads Genetics, which focuses on livestock genetics and disease-free herds.

"BL Agro's expansion into Tanzania highlights a strategic cross-border model where an established Indian FMCG player exports its domain expertise in agriculture and dairy processing to an emerging international market. By securing concessional land leases and aligning with local government joint ventures, the company is mitigating initial entry risks. Funding the project primarily through internal accruals demonstrates financial prudence while building an integrated supply chain in East Africa." — Dr. Shishir Gupta, Founder & CEO, StartupLanes