Novonesis invests US$700M in enzyme facility in India

INDIA – Novonesis will invest €600 million (US$700 million) to expand its Patalganga site in India, building an advanced enzyme production facility that will strengthen supply to India, the Middle East and Africa, including the animal feed sector.

The expansion, announced on September 2, is expected to be fully operational by 2030. 

While the facility will produce enzymes for several industries, including biofuels, household care, and food and beverages, the investment also strengthens Novonesis’ animal nutrition business by bringing production closer to emerging markets.

Novonesis said India, the Middle East and Africa represent important and growing markets for its business and are expected to expand faster than developed markets. 

The company is therefore increasing local production capacity while making its global supply network more flexible and resilient.

Feed demand strengthens the case for enzyme production

The investment comes as feed manufacturers face growing pressure to improve feed efficiency while managing volatile raw-material costs. 

Enzymes can help unlock nutrients from conventional feed ingredients, including phosphorus, protein and energy, allowing animals to derive more nutritional value from each ration.

Novonesis says its feed enzymes can improve nutrient availability and energy utilisation, support feed-cost optimisation and reduce waste. 

Its portfolio includes phytases, proteases and carbohydrases designed for poultry, swine, cattle and aquaculture applications.

India provides an important growth market for these technologies. 

The country’s feed-enzyme market was estimated at US$44.7 million in 2026 and is projected to reach US$56.4 million by 2031, representing a 4.75% compound annual growth rate, according to Mordor Intelligence. 

Poultry accounted for 65.6% of the market in 2025, while demand is being supported by commercial poultry expansion, pressure to improve nutrient efficiency and feed-mill modernisation.

The need for feed-cost efficiency is particularly relevant in India, where maize and soybean meal make up a large share of poultry diets. 

Recent reporting indicates that broiler diets typically contain about 55-65% maize and 25-30% soybean meal, meaning changes in feed-ingredient costs can quickly affect poultry production economics.

A strategic supply base for Middle East and Africa

For the Middle East and Africa, the Patalganga expansion could strengthen access to enzyme technologies from a production base closer to these markets.

This is significant as feed manufacturers across emerging markets seek technologies that can improve feed conversion, increase flexibility in raw-material sourcing and reduce production costs. 

Novonesis’ 2025 results showed particularly strong growth in emerging geographies, while the company reported 7% organic sales growth globally. 

It also strengthened its animal biosolutions business by acquiring dsm-firmenich’s share in the Feed Enzyme Alliance.

The new facility is part of a wider manufacturing investment programme. 

Novonesis has also expanded facilities in Thailand, the United States, China, Brazil and other locations to increase production capacity and strengthen supply resilience.

The Patalganga facility will incorporate freshwater recycling and integrated heat pumps to reduce water and energy consumption.

Novonesis said the technologies will support lower Scope 1 and 2 emissions.

With full production expected by 2030, the investment will give Novonesis additional manufacturing capacity.

It comes as demand for feed enzymes and other biosolutions grows, driven by the need for more efficient feed production, tighter production economics and more sustainable livestock and aquaculture systems.

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