BL Agro invests 7,000 crore rupees in Tanzania's agricultural sector

Bareilly-based company BL Agro is entering the global market and plans to channel Rs 7,000 crore over a ten-year period into edible oils, dairy livestock, agriculture, as well as research and production in Tanzania. This foreign project supports the group's strategy to achieve a turnover of Rs 30,000 crore by 2030. Managing Director Ashish Khandelwal noted that Tanzania has attracted investors with its favorable climate and large land bank. The government of this country has leased 7 lakh hectares for 99 years at preferential rates and will also act as a joint venture partner on part of this land.

Financing in the first phase will be provided through the company's internal accruals, while subsidised bank loans and the prospect of an initial public offering (IPO) are also being considered. As part of the first phase, about Rs 1,500 crore will be invested in establishing an edible oil complex with a processing capacity of 1,100 tonnes per day. The enterprise focuses on sunflower oil and is scheduled to be commissioned by April 2027. At the initial stage, the products will cover Tanzania's domestic demand and will not be exported to India.

Over ten years, approximately Rs 2,000 crore will be directed towards implementing the Indian cattle breeding and genetics program, exclusively using the Gir breed to increase the milk productivity of local livestock animals. In addition, the company intends to boost the yield of crops, which currently remains low in Tanzania. BL Agro also plans to establish local production of agricultural machinery, tractors, and equipment instead of importing them.

High Commissioner of the United Republic of Tanzania to India Anisa K Mbega supported the initiative, emphasizing that the cooperation will bring technologies, create jobs, and help in training farmers. The flagship company BL Agro Industries, which grew out of the mustard trade, develops distribution networks under the Bail Kolhu and Nourish brands, and also has subsidiaries Leads Connect Services and Leads Genetics.