SYDNEY, Sept 7 (Reuters) - Indian conglomerate Bhoruka Group will invest A$63 million ($54 million) in an oilseed and crushing facility in Australia that could spur an increase in the amount of oilseeds planted in Australia.
The plant, which will start production in October next year in New South Wales state, will have the capacity to crush and refine 170,000 tonnes of oilseed annually, largely for export markets including India and Japan.
It will require about 125,000 additional acres in Australia to be planted with oilseeds, or 5 percent more than currently planted, Bhoruka said.
Australia produces over 600,000 tonnes of edible oils and fats annually, but to date has largely exported unprocessed oilseeds such as canola rather than refined products.
The project, called Riverina Oils & Bio Energy (ROBE), expects to export 65,000 tonnes a year of refined vegetable oil once operating, and has plans to double output if an initial 12 months of operation proves successful.
It said some farmers may switch from water-hungry crops such as rice to oilseeds.
Bhoruka Chairman Sartya Agarwal and Indian businessmen Dhruv Saxena and Ravi Uppal will own 60 percent of the project, while U.S. venture capital firm Lotus Ventures will hold 40 percent.
Agarwal said his firm had been attracted to Australia because of the productivity of the agriculture sector and the potential to add value by crushing and refining oilseeds for export.
The ROBE plant will also produce up to 75 million litres of biodiesel over the long term, converted either from refined oil or imported palm oil.
Agrawal said Bhoruka is also considering a larger investment in Australia's agricultural processing sector, possibly a biomass fuelled power plant, capitalising on the group's experience as India's largest renewable electricity generator. ($1=1.170 Australian Dollar) (Reporting by Bruce Hextall)
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