NFP Sampoorna Foods to Set Up Cashew Nut Shell Liquid Plant

NFP Sampoorna Foods Limited announced on Monday, June 22, 2026, that its Board of Directors has approved a proposal to establish a new oil extraction plant dedicated to producing Cashew Nut Shell Liquid (CNSL). The facility, to be located in the RIICO Industrial Area in Ghilot, Neemrana, Alwar, marks the company's strategic entry into the specialty chemicals and bio-based industrial materials sector.

The project is designed to enhance the company’s resource utilization by processing the cashew nut shells generated as a byproduct during its existing kernel processing operations. By converting these shells into CNSL, NFP Sampoorna Foods aims to diversify its product portfolio and tap into a growing market for sustainable, renewable alternatives to petroleum-derived chemicals.

Expanding into Specialty Chemicals

Cashew Nut Shell Liquid is a versatile industrial raw material widely used in the manufacturing of resins, paints, coatings, friction materials, and laminates. As global industries increasingly seek greener, bio-based substitutes for traditional chemical feedstocks, NFP Sampoorna Foods expects the new facility to contribute significantly to its value-addition initiatives and operational efficiency.

The company, which recently completed its initial public offering (IPO) earlier in 2026, has seen steady growth as a processor and wholesaler of dry fruits. This new investment is part of its post-IPO expansion strategy to strengthen processing capabilities and leverage its supply chain more effectively.

Project Financing and Implementation

According to regulatory filings submitted to the National Stock Exchange (NSE), the board has sanctioned a term loan of up to ₹150 Lakhs from a scheduled commercial bank or financial institution to finance the installation of the extraction facility.

"The project is expected to be implemented during the current financial year, 2026-27," the company stated in its official disclosure. The project aligns with the company’s ongoing efforts to transition from a pure-play food processor to a more integrated industrial player, utilizing agricultural waste to generate high-value chemical products.

Official Sources

• National Stock Exchange (NSE) / NFP Sampoorna Foods Regulatory Filing – Official announcement regarding the establishment of the CNSL extraction plant.

• Securities and Exchange Board of India (SEBI) – Regulatory filings regarding company developments and material disclosures.

Why It Matters

This development is significant for investors and industry stakeholders as it marks a pivot toward sustainable industrial production for NFP Sampoorna Foods. For the company, it transforms a waste product (cashew shells) into a revenue-generating asset. Furthermore, it highlights a broader trend among Indian SME-listed food processing companies to integrate vertical value chains to insulate themselves from market fluctuations in primary produce prices.

Key Facts at a Glance

• New Facility: Dedicated plant for extracting Cashew Nut Shell Liquid (CNSL).

• Location: C-63, RIICO Industrial Area, Ghilot, Neemrana, Alwar, Rajasthan.

• Investment: Approved term loan of up to ₹150 Lakhs for project financing.

• Target Timeline: Implementation scheduled for FY 2026-27.

• Product Utility: Used in resins, paints, coatings, and friction materials.

FAQ

1. What is Cashew Nut Shell Liquid (CNSL)?

CNSL is a natural, non-edible oil extracted from the honeycomb structure of cashew nut shells. It is a vital bio-based industrial material used as a renewable alternative to petroleum-based chemicals.

2. Why is NFP Sampoorna Foods entering the chemical sector?

The company aims to optimize resource utilization by repurposing cashew shells, which are a byproduct of its primary cashew processing business, into a high-value industrial product.

3. How will the company finance this project?

The Board of Directors has approved a term loan of up to ₹150 Lakhs from a bank or financial institution to fund the construction and installation of the new plant.

Source: National Stock Exchange (NSE), SEBI