BL Agro Enters Tanzania Market With Plans to Invest ₹7,000 Crore Over 10 Years

Bareilly-based regional mustard oil player BL Agro Industries has marked its entry into the global market with a major investment plan in Tanzania. The company intends to invest ₹7,000 crore in phases over the next 10 years to grow sunflower and exotic vegetables in the African nation, while targeting export opportunities in Europe alongside meeting domestic demand.

The announcement follows four years of preparation, and an agreement with the Tanzanian government is scheduled to be signed next month. According to Managing Director Ashish Khandelwal, the Tanzanian government has offered 7 lakh hectares of land on a 99-year lease. Half of this land will be utilized for sunflower cultivation, while the remaining half will support the production of exotic fruits and vegetables for the European market, alongside cattle breeding operations.

Khandelwal stated that the overseas expansion is expected to help double the company's turnover to ₹30,000 crore by 2030. The group's current turnover for 2025-26 stands at ₹15,359 crore. The initial funding for the project will be limited to land leasing costs, which BL Agro will meet through internal business revenues. Subsequent investments will be funded by revenue generated from crop harvests, with bank credit available at subsidised interest rates facilitated by the Tanzanian government. A public listing through an IPO remains the last option for funding.

In the first phase, BL Agro will invest approximately ₹1,500 crore to establish a vegetable oil complex with a daily processing capacity of 1,100 tonnes. Slated for commissioning by April 2027, the plant will focus on sunflower oil production based on local seed availability. Khandelwal noted that the company plans to sell products under its 'Nourish' brand rather than trading raw sunflower seeds or bulk oil. BL Agro aims to improve sunflower yields in Tanzania from the current 800-900 kg per hectare closer to Indian productivity levels, which range from 1.5 to 2.3 tonnes per hectare.

Explaining the rationale behind the international move rather than expanding domestically, Khandelwal pointed out that mustard oil consumption varies widely by state, and intense competition from cheap, local brands limits domestic growth. Additionally, the company plans to replicate its cow breeding and genetics program in Tanzania, investing around ₹2,000 crore over the decade. The initiative will introduce Gir cows from India, with temperature and weather conditions already evaluated. The move follows a study commissioned earlier this year by the High Commission of India in Dar es Salaam to explore agricultural opportunities for Indian industries.

"BL Agro's expansion into Tanzania highlights a strategic approach to scaling operations by securing large-scale land resources overseas when domestic markets present intense competition and margin pressures. By integrating agricultural production, processing, and livestock breeding under established brands like 'Nourish', the company is building a vertically integrated supply chain aimed at international markets. For growing enterprises, exploring cross-border opportunities backed by favorable government agreements can unlock long-term growth and revenue diversification." — Dr. Shishir Gupta, Founder & CEO, StartupLanes