Founder and owner of BN Group, Anubhav AgarwalDeccan Herald | 17 December 2024BN Group to invest $1 billion in Africa to expand edible oil business
New Delhi: Edible oil manufacturer BN Group announced on Tuesday a $1 billion (approx Rs 8000 crore) investment to expand its operations across Africa, targeting emerging markets with a phased deployment over the next five years.
The company, in a statement, said it plans to establish three manufacturing facilities with a combined production capacity of 2,000 tonnes and invest in palm plantations.
BN Group expects to commence operations by the fourth quarter of the fiscal year 2026-2027, projecting 20-25 per cent earnings before interest, taxes, depreciation, and amortization (EBITDA) margins.
The company's Founder and Managing Director, Anubhav Agarwal said the expansion is a strategic move to become a global enterprise, focusing on creating value-driven businesses that cater to diverse African markets.
Initially adopting a direct-to-store retail model, the company aims to build relationships with local retailers before transitioning to a distributor-based network.
The investment includes $400 million (Rs 3,300 crore) for manufacturing facilities and the remainder for plantation acquisitions.
BN Group, which currently operates brands Simply Fresh and Nutrica in India, reported revenues of over Rs 4,500 crore in fiscal year 2024.
The African expansion represents the company's broader strategy to strengthen its presence in the fast-moving consumer goods (FMCG) sector.
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Agro & Food Processing | November 25, 2024
Edible oil manufacturer BN Group is set to invest approximately $1 billion over the next five years to solidify its presence in Africa, said Anubhav Agarwal, CEO & MD of BN Group.
The company has already established an office in Tanzania and plans to allocate $400 million to build three manufacturing plants with capacities of 1,200 tons, 500 tons, and 300 tons, respectively. The remaining investment will fund the acquisition of plantations. Operations are expected to commence in the fourth quarter of FY 2026-27.
BN Group plans to cater to local consumer preferences by introducing palm oil products in three sizes—5L, 10L, and 15L—at competitive prices. Initially, the company will adopt a direct-to-store strategy before transitioning to distribution through distributors.
In addition to palm oil, BN Group aims to produce and market by-products such as soaps. The company expects to capture a significant share of Africa’s emerging markets, projecting EBITDA margins of 20-25%—a stark contrast to the 5% typically seen in India for agricultural commodities.
With a presence in five countries globally, BN Group anticipates its African operations to contribute $2 billion of its projected $3 billion revenue by 2030. For FY 2024-25, the company aims to achieve $1 billion in revenue, with EBITDA margins between 4.5% and 5%.
This ambitious expansion is poised to establish BN Group as a key player in Africa’s edible oil market while strengthening its global footprint.
