Bareilly-based food and FMCG company BL Agro has announced plans to invest ₹7,000 crore in Tanzania over the next 10 years, marking its entry into international markets. The proposed investment will cover edible oils, dairy, agriculture, research and manufacturing, with a focus on combining Tanzania’s agricultural resources with Indian technology and processing expertise.
₹1,500 Crore Sunflower Oil Complex Planned
Edible oils will be the initial focus of the expansion. BL Agro plans to invest approximately ₹1,500 crore in a vegetable oil complex with a processing capacity of 1,100 tonnes per day. The facility, which will primarily process sunflower seeds due to their local availability, is targeted for commissioning by April 2027.
Products from the facility will be marketed under the company’s Nourish brand. BL Agro said the initial output would serve the Tanzanian market rather than be shipped to India. The company sees potential to supply neighbouring countries in the future, supported by Tanzania’s access to regional trade routes and ports.
Dairy and livestock development are also part of the long-term investment plan. BL Agro intends to allocate around ₹2,000 crore over 10 years to replicate elements of India’s cattle breeding and genetics programme in Tanzania.
The company cited a substantial gap in reported milk productivity: approximately 1–1.5 litres per cow per day in Tanzania, compared with 7–8 litres in India. BL Agro Managing Director Ashish Khandelwal said the company plans to focus on Gir cattle as part of its breeding strategy.
Improving Crop Yields and Agricultural Mechanisation
BL Agro also plans to work on raising crop yields and expanding access to agricultural equipment. The company reported Tanzanian crop yields of around 800–900 kg per hectare, compared with 2–2.5 tonnes per hectare in India.
Its plans include developing farm instruments, tractors and machine parts locally, reducing dependence on imported equipment. The company is reportedly in discussions with potential partners for manufacturing and selling agricultural machinery.
Funding and Long-Term Market Strategy
BL Agro plans to initially fund the expansion through internal accruals. It is also exploring bank financing, potentially at subsidised rates, and has mentioned a possible public listing. The company clarified that the initial public offering idea remains at a very early stage.
Tanzania’s potential role as a regional hub is another part of the strategy. BL Agro believes its location and access to ports could eventually help it serve other East African markets.
What This Means for the Dairy Industry
The proposed investment signals an opportunity for Indian dairy and agri-business expertise to expand into African markets. Beyond milk production, the focus on cattle genetics, agricultural productivity, equipment manufacturing and local value addition could support the development of a broader livestock and food-processing ecosystem.
The immediate focus, however, is the planned edible oil complex. The scale and impact of the dairy programme will become clearer as investment phases progress and projects move from announcement to implementation.
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Read full story here 22 Oct, 2026 Edited and Reported by
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