ADM Expands Oilseeds Processing Capacity in India
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today the expansion of its global oilseed processing capacity through the acquisition of two oilseeds processing facilities in India from Geepee Agri Private Limited. The facilities, located in the cities of Kota and Akola, process rapeseed, soy and palm.
“This acquisition advances ADM’s strategy to expand the size and global reach of our operations and increases our presence in the growing Indian market,” said Brent Fenton, president, ADM Europe. “ADM will integrate these operations into our global supply chain, strengthening our oilseeds processing activities in India and further enhancing ADM’s leadership in global agricultural processing.”
ADM has also established a new Indian headquarters office in Gurgaon, near New Delhi in the northern state of Haryana. This office will oversee ADM’s operations in India and will manage sales, purchasing and administrative work in the country.
The new processing facilities complement the company’s recent purchase of the remaining interests in Tinna Oils, which is now wholly owned by ADM. The Tinna Oils acquisition includes a soybean and sunflower seed processing plant in Latur, a soybean and sunseed processing plant in Dharwad and a port warehouse in Visakhapatnam. Additionally, ADM purchased the soybean processing assets of Madhur Agro located in Nagpur, earlier this year.
The facilities in Akola and Nagpur, both in the western state of Maharashtra, include soybean crushing, refining and packaging capabilities, enabling ADM to produce vegetable oil and meal for food and animal feed markets. The two plants serve the domestic market for packaged oils and the export market for soy meal. Additionally, the site in Akola contains a palm oil refinery and warehouses for raw and processed materials.
The Kota site, located in the north-western state of Rajasthan, includes a soy and rapeseed crushing, refining and packaging facility. This location gives ADM access to the growing domestic Indian rape oil market as well as the rape meal export market. The plant’s soy processing capabilities enable ADM to supply soy oil directly to the north Indian market.
“These new assets support ADM’s expansion of our oilseeds origination network in Central Asia, which is a region of great interest to our business,” said Kevin Eikerman, managing director, ADM Oilseeds India. “The close proximity of suppliers and customers, coupled with ADM’s global reach and export capabilities, will open excellent market opportunities to connect local crops with global markets.”
Every day, the 30,000 people of Archer Daniels Midland Company (NYSE: ADM) turn crops into renewable products that meet the demands of a growing world. At more than 265 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world’s premier crop origination and transportation network, connecting crops and markets in more than 75 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2011, were $81 billion. For more information about our company and our products, visit www.adm.com.