Cargill expands presence in India with new corn milling plant to meet rising demand

INDIA – Cargill has strengthened its foothold in India’s food ingredient sector with the inauguration of a new corn milling plant in Gwalior, Madhya Pradesh. 

Established by Indian manufacturer Saatvik Agro Processors, the facility is set to cater to the growing demand from the country’s confectionery, infant formula, and dairy industries. 

With a combined market value of approximately US$15 billion, these sectors are projected to grow at annual compounded rates of 6% to 11% over the next five years.

The plant has been set up under a business arrangement with Saatvik, which has developed a dedicated production facility for starch derivatives. 

These ingredients play a critical role in food manufacturing, serving as thickening and stabilizing agents to enhance texture, viscosity, and mouthfeel in consumer products such as gummies, jellies, fillings, yogurt, cheese, processed milk, and infant formula.

Scaling up production to meet market needs

With an initial output capacity of 500 tons per day, the facility has been designed for future scalability, allowing production to increase to 1,000 tons per day. 

This expansion is expected to support India’s growing food manufacturing industry by ensuring a consistent supply of high-quality starch derivatives. 

By combining Cargill’s global expertise in food solutions with Saatvik’s local manufacturing and operational capabilities, the plant aims to provide a reliable source of food ingredients while optimizing supply chain efficiencies.

The facility will operate exclusively for Cargill, adhering to the company’s global food safety and quality standards. This approach aligns with Cargill’s goal of enhancing local production capabilities while driving innovation and efficiency across its supply chain. 

Additionally, the plant’s location enables Cargill to serve food manufacturers in North, Central, and Western India more effectively, reducing reliance on supply from the southern regions and improving cost and logistical efficiencies.

Enhancing local manufacturing and supply chain efficiency

The expansion aligns with India’s ‘Make in India’ initiative, supporting local manufacturing while reducing supply timelines and increasing cost-effectiveness for food manufacturers. 

While the facility is primarily focused on meeting domestic demand, Cargill has indicated that export opportunities may be explored in the future to further extend its market reach.

The new plant was officially inaugurated by John Fering, Group President, Food APAC, Cargill, alongside Simon George, President of Cargill India and Managing Director for Food South Asia. 

Speaking at the launch, George emphasized the strategic importance of the plant in strengthening Cargill’s manufacturing network and enhancing supply chain efficiencies across India.

“This Gwalior plant allows us to serve customers in North and West India more competitively while ensuring a stable supply of essential food solutions that align with evolving consumer preferences,” George stated. 

“By leveraging local manufacturing capabilities, we are not only reducing supply timelines but also increasing cost-effectiveness for our customers.”

He further noted that the initiative reinforces Cargill’s commitment to fostering industry growth by integrating its global expertise with India’s strong manufacturing capabilities. 

“By supporting Indian entrepreneurs and enhancing local production, we are creating more value for customers and contributing to the long-term development of India’s food and beverage industry.”