Indian BN Group to invest US$1B in Africa’s edible oil market by 2030

AFRICA—Indian edible oil producer BN Group has committed to investing US$1 billion over the next five years to build processing plants and purchase oilseed plantations in Africa.

The move, which aims to expand the company’s footprint in emerging markets, was announced by the group’s CEO, Anubhav Agarwal, in an exclusive interview with The Economic Times of India on November 23.

While he did not disclose the specific countries or sub-regions where BN Group will focus its efforts, the company is poised to offer a range of products, including palm oil and other related items such as soap.

Agarwal detailed plans for the construction of three processing plants across the continent, with capacities of 1,200 tonnes, 500 tonnes, and 300 tonnes, respectively.

The company intends to allocate US$400 million of the total investment to these facilities, which are expected to begin operations by the fourth quarter of the 2026-2027 financial year.

“Operations are expected to begin in the fourth quarter of the 2026-2027 financial year to serve emerging markets in Africa. Apart from palm oil processing, we are looking at supplying other related products such as soap,” he said

The remaining funds, he added, will be directed towards the acquisition of oilseed plantations to secure a steady supply of raw materials for its production needs.

Our goal is to strengthen our presence in Africa and tap into the growing demand for edible oils and related products,” said Agarwal.

To cater to local consumer preferences, BN Group plans to introduce oil products in 5, 10, and 15-litre sizes, designed to appeal to a variety of household and commercial needs.

Additionally, Agarwal detailed that the company will initially adopt a direct-to-store sales model before transitioning to a more extensive distribution network through local distributors.

This expansion into Africa comes as part of BN Group’s broader strategy to achieve higher profit margins outside of India, where it currently faces EBITDA (operating profit before provisions and depreciation) margins of just 5%. In contrast, the company anticipates margins of 20 to 25% in its African operations.

BN Group, which currently operates in five countries globally, expects its African market to become a major revenue driver. The company projects its African business to contribute US$2 billion to its overall revenue target of US$3 billion by 2030.

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