BL Agro Industries: From Mustard Oil Pioneers to a ₹5,000 Crore FMCG Powerhouse

"Quality is not an accident; it is the result of intelligent effort." This philosophy has driven Ashish Khandelwal, the Managing Director of BL Agro Industries, to transform a 1940s family trading business into a modern food processing giant with a turnover exceeding ₹4,000 crore. With an 11% market share in India's mustard oil volume, BL Agro's Bail Kolhu brand has become a household name, while its newer Nourish brand is rapidly disrupting the FMCG space.

From a humble beginning in Bareilly to operating state-of-the-art automated plants with Japanese and European technology, Khandelwal's journey represents the successful evolution of a legacy Indian business into a globally competitive powerhouse. This is a story of how an aspiring scientist was "forced" into entrepreneurship, only to build one of India's most trusted food brands.

The Roots: From Trading to a Modern Enterprise

The story of BL Agro began long before its formal incorporation in 1993. Khandelwal's forefathers started in oil trading in the 1940s. However, the first major turning point occurred in the early 1990s. During a time when "dropsy" cases (a disease caused by adulterated oil) were making headlines, BL Agro took a pioneering step.

"In 1992-93, we established a mustard testing lab," Khandelwal recalls. This focus on scientific testing and quality control—uncommon for traditional trading houses at the time—set the foundation for the Bail Kolhu brand's reputation for purity.

Ashish Khandelwal joined the business in 1996, bringing a scientist's mindset to the family venture. "Entrepreneurship was not a choice; I was forced into it," he admits with a smile. "I wanted to be a scientist." This background, however, proved to be his greatest asset, leading to a relentless pursuit of technological excellence.

The Technological Leap: Automation and Hygiene

For decades, oil packaging was a manual and often unhygienic process. In 2013, Khandelwal made a radical decision that would redefine the company's future: 100% automation. "I remember there was a complaint... it was a small issue, but it made me realize we needed to remove the human element from the core production," he explains.

The company invested heavily—nearly ₹160 crore—in machinery from Japan (Toyo), Italy, and Germany. This transition to an "untouched by hand" process wasn't just about efficiency; it was about ensuring absolute hygiene and quality consistency.

Diversification: The Birth of 'Nourish'

While Bail Kolhu dominated the oil market, Khandelwal saw a broader opportunity in the FMCG segment. In 2017, he launched Nourish, a brand dedicated to providing high-quality staple foods like wheat flour (atta), spices, pulses, and dry fruits.

"We are doing around 75 food items right now," Khandelwal notes. The goal was simple: provide the same level of trust and quality in daily staples that customers found in their mustard oil. Today, Nourish contributes significantly to the group's revenue, helping BL Agro transition from an oil company to a complete food solutions provider.

The Philosophy of Scaling: Quality Over Competition

In a world of aggressive brand conscious consumers and giant MNC competitors, Khandelwal remains focused on the product itself. "Total consumption is massive. In this world, nobody can cater to 100% of the demand," he observes. "My competition is with myself—to maintain the quality that my father and forefathers established."

This commitment to quality is evident in their refusal to compromise on raw materials. For Bail Kolhu, the "pungency" of the mustard oil—a key indicator of quality for North Indian consumers—is non-negotiable, achieved through traditional cold-pressing techniques integrated with modern automation.

Future Vision: The ₹20,000 Crore Goal

Khandelwal is not slowing down. With a clear roadmap to reach ₹20,000 crore by 2030, the focus is on deeper market penetration and expanding the Nourish product line. The company is also looking at the "Western World" consumption of mustard oil as a potential growth area.

"Everything is great right now," Khandelwal concludes, reflecting on the 1940-to-present journey. The "scientist" in him continues to lead through data and technology, while the "entrepreneur" in him ensures that BL Agro remains at the heart of the Indian kitchen.

Key Takeaways

For Legacy Business Owners: Transformation requires the courage to replace old systems with world-class technology, even if it requires significant initial investment.

For FMCG Founders: Success in staples like atta and dal depends on building a supply chain that guarantees consistency in quality every single day.

For Students & Professionals: Even if you are "forced" into a role, your unique background (like Khandelwal's scientific training) can be the differentiator that makes you successful.

About the Guest

Ashish Khandelwal is the Managing Director of BL Agro Industries Ltd., one of India's fastest-growing food processing companies. Under his leadership, the company has scaled its flagship brand, Bail Kolhu, to national prominence and successfully launched the Nourish brand into the FMCG market. Known for his focus on automation and technological innovation, Khandelwal has successfully transitioned his family's legacy business into a multi-thousand-crore modern empire.