Global agribusiness giant Cargill has inaugurated a new corn milling plant in Gwalior, set up by Saatvik Agro Processors, to meet the growing demand from India’s confectionery, dairy, and instant formula sectors. This strategic expansion aims to enhance local manufacturing capabilities and streamline supply chain efficiencies.
Key Highlights of the Plant
- Initial Production Capacity: 500 tonnes per day
- Expandable Capacity: Up to 1,000 tonnes per day
- Primary Focus: Starch derivatives for food processing industries
- Strategic Location: Serves North, Central, and Western India
- Potential for Export: Future expansion into international markets
Cargill’s Partnership with Saatvik Agro
Cargill has entered a business arrangement with Saatvik Agro, leveraging its local manufacturing expertise to bring high-quality starch derivatives to food manufacturers. By integrating Cargill’s global capabilities with Saatvik Agro’s operational expertise, the facility ensures a consistent and reliable supply of essential food ingredients.
Reducing Supply Chain Dependence on Southern India
The new plant will help reduce dependence on corn milling facilities in Southern India, thereby optimizing costs and logistics. This move will enable Cargill to efficiently serve food manufacturers in North, Central, and Western India, where demand for starch derivatives is rapidly growing.
Industry Impact and Market Growth
The Indian confectionery, dairy, and instant formula sectors—valued at $15 billion—are witnessing an annual growth rate of 6% to 11% over the next five years. The increasing demand for starch derivatives, used as thickening and stabilizing agents in products like:
- Gummies and jellies
- Dairy products (yogurt, cheese, processed milk)
- Infant formula
- Fillings and desserts
Inauguration and Leadership Insights
The plant was inaugurated by:
- John Fering, Group President, Food APAC, Cargill
- Simon George, President, Cargill India & Managing Director, Food South Asia
Simon George emphasized that the new plant strengthens Cargill’s Indian manufacturing network, allowing the company to “reduce supply timelines, enhance cost-effectiveness, and ensure a stable supply” of starch derivatives. He added that this expansion is in line with Cargill’s commitment to supporting India’s evolving food industry. Simon George was also present at the event, further highlighting the significance of this milestone for Cargill India.
Future Plans: Export Market and Expansion
While the Gwalior facility primarily focuses on domestic demand, Cargill plans to explore export opportunities, expanding its market reach. As India’s food sector continues to grow, the plant’s scalable production capacity ensures adaptability to evolving consumer needs.
This latest investment by Cargill underscores its long-term commitment to India’s food manufacturing ecosystem, ensuring sustainable, high-quality ingredient supply for dairy, confectionery, and processed food industries.
