BN Group, a leading conglomerate with business interest in FMCG, edible oil and specialty chemicals sectors, plans to invest about $1 billion to expand its edible oil business in Africa.
The investment will be deployed in tranches over the next 5 years, with $400 million dedicated to establishing modern manufacturing facilities and the remaining capital allocated for acquisition of palm plantations.
The company plans to set up three plants with capacities of 1,200 tonnes, 500 tonnes and 300 tonnes at strategically identified locations.
With an initial focus on the emerging African markets, BN Group is set to commence operations by March quarter of FY27. The company expects 20-25 percent EBITDA margins from its operations in Africa.
Direct-to-store model
Anubhav Agarwal, Founder and Managing Director, BN Group said by establishing a strong local presence, the company aims to blend affordability with innovation, offering products that resonate with culturally diverse consumers across the region.
“We are focused on building a robust manufacturing and retail ecosystem that drives sustainable growth and positions us as a trusted partner in Africa’s economic development,” he said.
By adopting a direct-to-store retail model initially, the company aims to build strong relationships with local retailers, gradually transitioning to a distributor-based network for broader market reach.
With its existing edible oil brands Simply Fresh and Nutrica and manufacturing units in Mathura, Uttar Pradesh, and Kandla Port, Gujarat, BN Group has made significant strides in the edible oil market in India, achieving a revenue of over ₹4,500 crore last fiscal.
As the company looks to the future, it is poised to expand its global presence, further strengthening its position in the FMCG sector and building a sustainable global business.