Global Food and Agriculture major Cargill has decided to invest $160 million over the next three years to increase its operations in India. As per the report, this would be in addition to the $80 million that the Minnesota-based private food and agricultural behemoth has already invested in the last two years.
Marcel Smits, Cargill’s Chairman and CEO of the Asia-Pacific region, who has recently visited India said, “India is a regionally important country for us. It has the second-highest investment in the Asia Pacific region, after China. We have invested half a billion dollars in India already, which is about 1 percent of the company’s total investment.”
Smits, who took up the top job in Asia last year, recently visited India last week to review the performance of its operations in India as well as meet key government functionaries, including Minister for Food Processing Industries Harsimrat Kaur Badal and NITI Aayog Vice-Chairman Rajiv Kumar.
“We are happy with the progress we are making in India. The country is doing well. Your growth numbers are very impressed with the government pushing through a lot of reforms,” Smits told in front of media.
As per the report, Cargill completed an investment of around $80 million in India recently. While $20 million is being spent only on an animal feed facility coming up in Kota in Rajasthan and $10 million on an aquafeed plant near Kakinada in Andhra Pradesh, in addition to $10 million invested in a state-of-the-art maize silo built in Davangere, Karnataka. Moreover, the company is planning to spend an additional $160 million over the next three years for fresh acquisitions and expanding business in India.
The US-based food and agricultural major has given a clear indication that the Asia-Pacific region is becoming very important in its scheme of things when Smits was moved to Singapore to take care of the region last year.
“Smits is the first member of the Cargill Global executive leadership to move to Asia,” said Simon George, President, Cargill India, who was also present at the meeting.
According to Smits, Cargill’s investments in Asia have doubled in the last 15 years and the region now accounts of 15 percent of global assets. In comparison, the US has 40 percent, Europe 25 percent and Latin America 15 percent of Cargill’s investments. He indicated that Cargill cannot ignore Asia, as the region is soon expected to account for 40 percent global GDP and more than 60 percent of global growth is projected to come from Asia.
On the other hand, Cargill President George said it registered double-digit growth in every sphere of business it is in India including edible oil, animal feed, and starch and sweeteners.
