BL Agro to invest ₹7,000 cr in Tanzania over 10 years across edible oils

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The investment will initially be funded through internal accruals. The company is also exploring bank loans, preferably at subsidised rates, and a public listing as another route

By PTI

Updated - October 22, 2026 at 11:05 AM.

Bareilly-based BL Agro on Thursday announced its entry into the global market with a ₹7,000 crore investment in Tanzania over the next 10 years across edible oils, dairy, agriculture, research and manufacturing.

The overseas expansion is part of the company's ambition to become a ₹30,000 crore group by 2030.

"We have planned a Rs 7,000 crore investment aimed at creating long-term partnerships to create value for local communities. This is also designed to bring Indian expertise, technology and industry experience to Tanzania," Managing Director Ashish Khandelwal said.

The investment will initially be funded through internal accruals. The company is also exploring bank loans, preferably at subsidised rates, and a public listing as another route, though the IPO idea is at a "very nascent stage", Khandelwal told PTI in an interview.

Khandelwal noted that Tanzania was picked as the first overseas destination for its large land bank and favourable climate.

The Tanzanian government is offering 7 lakh hectares at concessional rates on a 99-year lease and will also come in as a joint venture partner on part of the land for agriculture and livestock activities.

In the first phase, BL Agro will invest about ₹1,500 crore in a vegetable oil complex with a processing capacity of 1,100 tonnes per day. The plant, focused on sunflower oil given local seed availability, is slated to be commissioned by April 2027.

The company will sell products under the 'Nourish' brand.

Tanzania's current per-day edible oil demand is about 1,100 tonnes, matching the capacity BL Agro runs in India, Khandelwal said. Initial production will serve only the Tanzanian market and will not be shipped to India.

The company sees scope to supply neighbouring countries later. "Tanzania is the only country where multiple ports are available, as seven more countries are interlocked that use Tanzanian ports," he said.

Over a 10-year period, around ₹2,000 crore will be invested to replicate India's cow breeding and genetics programme in Tanzania, where milk productivity is just 1-1.5 litres per cow per day, against 7-8 litres in India.

"We will take the breed from here. The temperature is more pleasant and is more appropriate to increase the productivity of cows. We will go forward with Gir cows only," Khandelwal said.

BL Agro also plans to raise crop yields, which are low in Tanzania at 800-900 kg per hectare, compared with 2-2.5 tonnes in India. A team recently sent to the country found that agricultural skills were extremely low and mechanisation was virtually absent, Khandelwal said.

"We can very well fix them and help the country increase productivity," he said.

The company plans to develop farm instruments, tractors and machine parts locally rather than rely on imports, and is in talks with a couple of companies to manufacture and sell farm equipment.

Anisa K Mbega, High Commissioner of the United Republic of Tanzania to India, welcomed the proposal. "It is indeed a testament to Tanzania's rich potential in agriculture, edible oils, dairy and food processing... This collaboration will bring valuable technology, create jobs, nurture skills, and most importantly empower our farmers through local value addition and sustainable growth," she said in a statement.

The company said the investment would create an integrated ecosystem combining Tanzania's agricultural resources with Indian technology and processing expertise, and could make the country its gateway to the wider East African market. It is also expected to strengthen India-Tanzania trade and technology cooperation.

Originally a mustard trading business, flagship BL Agro Industries is now a major FMCG player with one of India's largest distribution networks for edible oils and food products, sold under the Bail Kolhu and Nourish brands.

The group has two subsidiaries: Leads Connect Services, an agri-tech firm working on data analysis and risk management, and Leads Genetics, which focuses on livestock genetics and disease-free, climate-resilient herds.

Published on October 22, 2026

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