BN Group, an edible oil manufacturing company, is planning to invest approximately $1 billion over the next 5 years to expand its presence in Africa.
BN Group to establish 3 plants
The company has already established its office in Tanzania and will be investing around $400 million to set up three manufacturing plants with a total manufacturing capacity of 2,000 tons.
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According to ET Retail, Anubhav Agarwal, CEO & MD, BN Group said, “We are expecting to start operations from Q4 FY 26-27 and will be capturing the emerging markets of Africa. Along with manufacturing palm oil, we are also looking forward to supplying other by-products of palm oil like soaps.” The company plans to offer localised product offerings to cater to the local preferences of the consumer.
Initially, the company will offer its products in 3 different sizes – 5 L, 10 L, and 15 L. The products will be offered at competitive prices in Africa. The company will start with a direct-to-store strategy and will eventually start distribution via distributors.
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BN Group eyes $3 Bn revenue by 2030
“As compared to India, where EBITDA margins for agri commodities hover around 5 per cent, we are expecting 20-25 per cent EBITDA margins in Africa,” added Anubhav.
Reportedly, the company, which has a presence in 5 countries globally, is anticipating $3 billion in total revenue by 2030, where $2 billion will be added from Africa. It is aiming to close this fiscal with $1 billion in revenue with EBITDA margins standing at 4.5 – 5 per cent.
