Cargill strengthens its position in India with new corn milling plant

Cargill has inaugurated a state-of-the-art corn milling plant in Gwalior, Madhya Pradesh, marking a strategic move to meet the rising demand from India’s rapidly growing confectionery, infant formula, and dairy industries. This plant, established through a business arrangement with Saatvik Agro Processors, an Indian manufacturer, will produce starch derivatives used as essential ingredients in consumer products, including gummies, jellies, fillings, yogurt, cheese, and processed milk.

The Indian food sector, with a combined market value of $15 billion, is experiencing strong growth, with projections showing annual compounded growth rates between 6% and 11% over the next five years. The demand for starch derivatives, which serve as thickening or stabilizing agents, is expected to grow in tandem, driven by evolving consumer preferences for texture, viscosity, and mouthfeel in various food products.

The new facility boasts an initial output capacity of 500 tons per day, with plans for expansion to 1,000 tons per day. The collaboration brings together Cargill’s global expertise in food solutions, customer network, and market access with Saatvik’s local manufacturing capabilities, ensuring a consistent supply of high-quality and safe food solutions for Cargill’s customers in India.

Cargill’s Gwalior plant will adhere to the company’s rigorous global food safety and quality standards while promoting innovation and process efficiencies. This expansion enhances the company’s production capacity in India, driving supply chain efficiencies and better meeting the needs of food manufacturers in North, Central, and Western India. It reduces the country’s dependence on supply from the South, optimizing logistics and cost structures for the industry.

Although the plant will primarily serve domestic demand, Cargill has expressed intentions to evaluate export opportunities to further expand its reach and market presence in the future.

Simon George, President of Cargill India and Managing Director of Food South Asia, emphasized the significance of the new plant. “This Gwalior plant strengthens our manufacturing network in India, enabling us to serve customers from North and West India more competitively while improving supply chain efficiencies. It allows us to reduce supply timelines, increase cost-effectiveness, and ensure a stable supply of essential food solutions that food manufacturers need to meet evolving consumer preferences.”