Cargill Inaugurates New Corn Milling Plant to Meet Growing Demand for Safe and High-Quality Food Solutions

Catering to the growing demand from India’s confectionery, infant formula, and dairy sectors, Cargill inaugurated a new corn milling plant in Gwalior, Madhya Pradesh set up by Saatvik Agro Processors, an Indian manufacturer.

With a combined market value of $15 billion, these sectors are witnessing high annual compounded growth rates of between 6 and 11% over next five years¹, leading to increased demand for starch derivatives which are used as thickening or stabilizing agents to achieve desired texture, viscosity and mouthfeel in consumer products like gummies, jellies, fillings, yogurt, cheese, processed milk and infant formula.

Cargill has a business arrangement  with Saatvik who has established this dedicated production facility for starch derivatives with an initial output capacity of 500 tons per day, which can be expanded to 1,000 tons per day. This facility combines Cargill’s global product capabilities, customer network and market access opportunities with local manufacturing capabilities and operational know-how of the Indian partner to bring a consistent supply of safe, high-quality solutions to Cargill’s food manufacturing customers in India.

The plant will operate on an exclusive arrangement for Cargill, adhering to the company’s stringent global food safety and quality standards while also driving innovation, and process efficiencies for the industry. This further increases Cargill’s production capacity in India while creating supply chain efficiencies that food manufacturers rely on to meet growing consumer demand. The expansion will also enable Cargill to serve customers across North, Central, and Western India more effectively, reducing dependence on supply from the South, optimizing both costs and logistics.

While the facility will cater primarily to domestic demand, in future Cargill will also evaluate export opportunities to expand its market reach through this plant.

The plant was inaugurated by John Fering, Group President, Food APAC, Cargill and Simon George, President Cargill India and Managing Director Food South Asia.

Commenting on the launch, Simon George said, “This Gwalior plant allows us to strengthen our manufacturing network in India to serve customers from North and West India more competitively while enhancing supply chain efficiencies that benefit the entire food ecosystem. By increasing our access to local manufacturing capabilities, we are reducing supply timelines, increasing cost-effectiveness, and ensuring a more stable supply of essential food solutions that food manufacturers need to meet evolving consumer preferences.”

Furthermore, “this step reflects our commitment to fostering industry growth by integrating our global expertise with India’s strong manufacturing capabilities, supporting the growth of Indian entrepreneurs, ultimately creating more value for customers and consumers alike”, he added.

This initiative reflects Cargill’s ongoing commitment to be a go-to partner for innovation and growth for its customers – from food manufacturing, foodservice to retail – supporting them with essential and high-quality food ingredients and solutions, and thereby contribute to India’s growing food and beverage industry. The initiative also aligns with the ‘Make in India’ vision, fostering long-term, sustainable growth for both businesses and consumers.

[1] Source: Euromonitor

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