India’s Khandelwal family takes BL Agro into Africa with $739 million Tanzania investment spanning sunflower oil, dairy and farming

Indian food manufacturer BL Agro is planning to invest about $739 million (₹70 billion) in Tanzania as the family-led company establishes its first overseas production base and targets the wider East African market.

• India’s BL Agro plans to invest about $739 million in Tanzania over ten years.
• The family-led company will build edible-oil, dairy and agricultural operations.
• Its first vegetable-oil complex is expected to become operational within three years.
• Tanzania could serve as BL Agro’s gateway to the wider East African market.

The ten-year investment programme will cover edible-oil production, dairy farming, animal husbandry, agricultural research and food manufacturing, bringing together Tanzania’s agricultural resources and BL Agro’s processing technology.

The company plans to develop vegetable-oil production and processing facilities using locally produced crops, including sunflower seeds, to meet domestic demand and increase the amount of agricultural produce processed inside Tanzania.

Its first vegetable-oil complex is expected to become operational within three years. BL Agro is also considering contract-farming arrangements and supply-chain partnerships linking Tanzanian farmers with its proposed processing facilities.

The investment was announced after a five-member BL Agro delegation visited Tanzania and held discussions with government officials and other stakeholders about the projects.

The Economic Times reported⁠ on 22 October that the programme would be implemented in phases over the coming decade. At the exchange rate of about ₹94.71 to the dollar on 21 October, the announced ₹70 billion investment is worth approximately $739 million.

Ashish Khandelwal, BL Agro’s managing director, said Tanzania’s agricultural and livestock industries had room to increase productivity through improved technology, processing and investment.

He said the proposed projects were intended to form long-term local partnerships, transfer Indian agricultural and industrial expertise and create value for Tanzanian communities.

Tanzania’s High Commissioner to India, Anisa K. Mbega, welcomed the plan, saying it could introduce technology, create employment, develop skills and allow farmers to earn more through local processing.

BL Agro targets East Africa from Tanzania

Tanzania’s sunflower production and access to neighbouring markets make the country strategically important to BL Agro’s expansion.

Instead of exporting unprocessed crops, the proposed facilities could allow more sunflower seeds and other agricultural products to be refined, packaged and sold locally. This would give farmers a potentially larger domestic buyer while expanding Tanzania’s food-manufacturing capacity.

Tanzania could give BL Agro a foothold in East Africa, where population growth, urbanisation and changing consumer habits are driving demand for packaged foods, edible oils and dairy products.

The company also plans to explore modern dairy infrastructure and cattle breeding as it expands beyond its traditional edible-oil business. Its proposed operations could connect livestock breeding, milk production, processing and distribution within one supply chain.

However, BL Agro has not disclosed the precise locations of the Tanzanian projects, the amount to be invested during the first phase or whether it has secured land and regulatory approvals. The $739 million should therefore be described as a planned ten-year investment rather than money already committed or spent.

A family business pursuing global growth

BL Agro traces its roots to an edible-oil trading business established by the Khandelwal family in India. Ghanshyam Khandelwal expanded the operation from the 1970s, while Ashish Khandelwal now serves as managing director.

The company produces edible oil under its Bail Kolhu brand and sells flour, rice, pulses, spices and other packaged foods through its Nourish brand. Its wider businesses now include agricultural technology, financial technology and dairy genetics.

The Tanzania expansion supports BL Agro’s target of building a group with annual revenue of about $3.17 billion (₹300 billion) by 2030.

It follows a separate plan announced in September to invest approximately $158 million (₹15 billion) in Leads Genetics, its biotechnology subsidiary, to develop an integrated dairy and cattle-genetics operation in India.