BL Agro signs MoU with MoFPI to set up ₹1,660 Cr Agro-processing plant

BL Agro, India’s leading FMCG player inked a Memorandum of Understanding (MoU) with the Ministry of Food Processing Industries (MoFPI), Government of India, today, which is a strategic and investment B2G partnership to build an export-oriented integrated agro-processing hub, advancing India’s food security and global trade leadership.

The MOU was signed between Ashish Khandelwal, Managing Director, BL Agro Group and Hon'ble Shri Preet Pal Singh, Joint Secretary, Ministry of Food Processing Industries, Government of India, in the presence of Shri A.P. Das Joshi, Secretary and Shri Shyam Singh Negi, Senior Economic Advisor, Ministry of Food Processing Industries (MOFPI), GoI, here on the second day of World Food India 2025 at Bharat Mandapam, Delhi.

As a part of this MOU, BL Agro will be investing Rs. 1,660 crore (USD 200 Mn) over the next 5 years in establishing a large-scale green field integrated agro-processing project in Bareilly, Uttar Pradesh. This would include setting up of a fully automated rice milling unit for premium basmati rice varieties, a 500 TPD edible oil extraction and refining plant under the renowned Bail Kolhu and Nourish brands, advanced packaging lines, sugar storage and sourcing solutions, and 40,000 MT grain storage capacity to support food security and exports.

Construction will begin in 6 months with Phase I completion targeted for 2027. The unit would be generating over 3,500 direct and indirect employment opportunities, significantly boosting rural livelihoods and driving inclusive economic growth.

Speaking on the occasion, Ashish Khandelwal, Managing Director, BL Agro Industries Ltd, said, "This collaboration with MoFPI reflects BL Agro’s commitment to building world-class agro-processing infrastructure in India. The partnership between BL Agro and MoFPI is designed to enhance food security, increase exports and also create sustainable value chains for farmers and rural communities. We would be integrating circular economy practices into our operations—such as utilizing by-products in cattle feed and renewable energy systems. This would set new benchmarks in sustainable food processing."

Commenting on the MOU, Shri Preet Pal Singh, Joint Secretary, A.P. Das Joshi, Secretary, Ministry of Food Processing Industries (MoFPI), said, “We are extremely delighted to say that this initiative underscores the Government of India’s focus on attracting large-scale privateinvestment into food processing and agri-value chains. By promoting modern infrastructure and sustainable practices, the collaboration will enable greater farmer linkages, expand export opportunities, and reinforce India’s position in global agri-trade.”

The Ministry of Food Processing Industries (MoFPI) will extend facilitation support for statutory clearances and approvals to expedite project execution, with construction expected to commence within six months and Phase I completion targeted for 2027. This partnership is an excellent step towards boosting agro-processing infrastructure, creating robust linkages between farmers and rural enterprises, and driving export growth.