NFP Sampoorna Foods Limited (NSE - SME: NFPSAMPOOR) has announced plans to establish a Cashew Nut Shell Liquid (CNSL) extraction facility at its Neemrana manufacturing complex in Rajasthan. The move is aimed at building a fully integrated and sustainable cashew processing ecosystem by adding value from cashew shell by-products and creating new long-term revenue opportunities.
Facility Capacity and Process
The proposed facility is designed to process up to 1,000 metric tonnes (MT) of cashew shells per month. Under the extraction process, approximately 22-23% of the raw shell material is expected to be converted into CNSL, while 72-73% is recovered as biomass fuel suitable for various industrial applications. The remaining portion comprises moisture and process residue or sludge.
At prevailing market prices, raw cashew shells trade at approximately ₹18 per kg, whereas CNSL commands prices of nearly ₹55 per kg and biomass fuel approximately ₹12.5 per kg. This price differential highlights the significant value-addition potential achievable through in-house processing.
Market Opportunity and Growth
CNSL is emerging as a strategically important bio-based industrial raw material, increasingly adopted as a sustainable alternative to petroleum-derived chemicals. It is widely used in manufacturing friction materials, brake linings, industrial resins, paints and coatings, construction chemicals, surface treatment products, laminates, insulation materials, specialty polymers, and adhesives.
The global CNSL market is projected to grow from approximately US$ 512 million in 2025 to around US$ 876 million by 2030, registering a compound annual growth rate (CAGR) of over 11%. Similarly, the global biomass fuel market is estimated at approximately US$ 54.9 billion in 2026 and is projected to reach US$ 84.2 billion by 2033, growing at a CAGR of around 6.3%. This growth is driven by increasing adoption of renewable and cleaner fuel alternatives worldwide.
Strategic Benefits
The addition of the CNSL facility is expected to enhance overall realization from cashew processing operations, create a new value-added revenue stream, improve utilization of by-products, reduce dependence on a single product category, strengthen the company's sustainability and circular economy initiatives, expand its presence into industrial and specialty chemical value chains, and improve the long-term margin profile through value-added processing.
Management Commentary
Commenting on the development, Mr. Yash Vardhan Goel, Managing Director of NFP Sampoorna Foods Limited, said: "The addition of the CNSL extraction facility marks another important milestone in our journey towards building a fully integrated and sustainable cashew processing platform. We believe that maximizing value from every component of the cashew value chain will significantly enhance our operational efficiency and profitability. With increasing global focus on sustainability, renewable raw materials, and green chemistry, CNSL and biomass offer attractive long-term growth opportunities. This initiative not only strengthens our circular economy approach but also enables us to diversify into high-growth industrial applications while creating additional value for all stakeholders."
Forward Outlook
With increasing global focus on sustainability, renewable raw materials, and circular economy practices, demand for bio-based industrial inputs is expected to remain strong over the long term. Through the establishment of in-house CNSL extraction capabilities, NFP Sampoorna Foods aims to strengthen its position as an integrated agri-processing company while expanding into adjacent high-value industrial segments, laying the foundation for sustainable and scalable long-term growth.
About NFP Sampoorna Foods Limited
NFP Sampoorna Foods Limited operates an integrated dry-fruit platform spanning sourcing, importing, in-house processing, grading, packaging, and pan-India distribution. Its portfolio includes cashew nuts, makhana (fox nuts), almonds, and walnuts, catering to B2B, B2C, and institutional customers. Direct sourcing from African origins and domestic importers ensures quality, supply security, and cost efficiency, while in-house processing enables value addition across multiple cashew grades. Its outlet in Khari Baoli, Delhi—Asia's largest wholesale dry-fruit market—provides direct access to distributors and institutional buyers.
