BL Agro Industries, a leading regional player in mustard oil, has forayed into Tanzania aiming to invest ₹7,000 crore ($738.5 million) in phases over the next 10 years. The plan is to grow sunflower and exotic vegetables in the African nation with an eye also on export opportunities in Europe besides meeting domestic demand locally.
The Bareilly-based BL Agro announced its first entry into the global market on Thursday after preparing for it for the last four years. An agreement with the Tanzanian government is scheduled to be signed by the company next month.
Speaking to businessline, BL Agro’s Managing Director Ashish Khandelwal said the Tanzanian government had offered 7 lakh hectares on a 99-year lease for which an MoU will be signed. While half of the land will be used to grow sunflower, the other half will be for growing exotic fruits and vegetables for the European market and for cattle breeding.
Khandelwal hopes that the overseas expansion would help the company double its turnover to ₹30,000-crore by 2030. The current turnover (in 2025-26) of the group is ₹15,359 crore.
“Our investment is aimed at creating long-term partnerships to create value for local communities. We will bring Indian expertise, technology and industry experience to Tanzania and also skill the workforce there,” Khandelwal said adding the decision was taken after evaluating all the risk factors as currently Tanazania has better foreign investment climate compared to many other countries in the region.
Elaborating on funding, he said initially it would be limited to payment of land leasing cost which BL Agro will meet from its own business. Once the crops are harvested, revenue will also get generated which will be invested there. “If required, the company is ready to avail bank credit as the Tanzanian government has agreed to facilitate that at subsidised rate of interest. Public listing though an IPO will be the last option,” Khandelwal said.
In the first phase, BL Agro will invest about ₹1,500 crore in a vegetable oil complex with a processing capacity of 1,100 tonnes per day. The plant, focused on sunflower oil given local seed availability, is slated to be commissioned by April 2027.
He also made it clear that the company will sell the products under the ‘Nourish’ brand and there is no plan to sell sunflower seeds or sunflower oil in bulk quantities. BL Agro is hopeful of raising sunflower yield in Tanzania – currently at 800-900 kg per hectare, he said. In India the average productivity level is 1.5 tonne per hectare in Rabi season whereas in some States farmers realise as high as 2.3 tonne.
When asked why BL Agro chose to expand overseas instead of expanding domestically,Khandelwal noted that mustard oil consumption varied heavily by state, and intense competition from cheap, local brands capped domestic growth. In contrast, there is space for growth (to double turnover) in other FMCG products and the company has been steadily growing.
BL Agro sells mustard oil under the ‘Bail Kolhu’ and other food products such as atta, maida, sooji, pulses under ‘Nourish’ brand. The group has two subsidiaries — Leads Connect Services (agri-tech sector) and Leads Genetics (livestock sector).
Khandelwal said BL Agro also sought to replicate its cow breeding and genetics programme in Tanzania by investing around ₹2,000 crore over next 10-year. “We will take the breed, only Gir cows, from here. The temperature and weather has already been mapped and the Indian breed will also be a success there,” he said. Tanzania’s milk productivity is 1-1.5 litres per cow per day, against 7-8 litres in India, he added.
The High Commission of India in Dar es Salaam had commissioned a study early this year to find out opportunities for Indian industry in the agriculture and allied sectors.
Published on October 22, 2026
