Sydney, Sep 9 - An Indian consortium led by the Bangalore-based diversified business house, the Bhoruka Group, is investing Australian $63 million ($54 million) in an edible oil refinery at Wagga Wagga, 470 km south-west of Sydney in New South Wales.

The agribusiness venture has been named Riverina Oils and Bio Energy and ranks among the largest value-added greenfield investments by an Indian company in Australia's eastern seaboard, the promoters said.

The refinery's construction will commence Sep 11. Besides offering major new export opportunities for Australian farmers, the plant will create jobs and generate annual revenue of Australian $150 million ($129 million).

'It is our first overseas venture. When I visited the region two years ago, I was amazed to see the vast agricultural fields, few people and almost no buildings. I realised the region had great potential for agribusiness and decided to invest here,' Bangalore-based Bhoruka Group chairman S.N. Agarwal, told IANS.

Agreed Melbourne-based founding partner and managing director of Riverina Oils D.D. Saxena: 'We felt from logistics, manpower, infrastructure and raw materials it seemed like the right place.'

The 170,000-tonnes a year oilseed crushing and edible oil refining plant will offer farmers in the area new crop opportunities. Initially, the project plant will crush canola, safflower, cottonseed, soybean and sunflower seeds.

'The production is expected to start by October 2010. We source the raw material, crush and refine oil at Wagga Wagga, with equipment sourced from all over the world,' said Agarwal, who is also chairman of Riverina Oils.

The company will export some of its 65,000-tonnes-a year refined vegetable oil output to food industry customers in India, Japan, and other parts of Asia, Europe and the US.

'India is the world's largest importer of edible oil. That makes the Indian connectivity of this project hugely important, both in terms of the investment and the export market,' Saxena, told IANS.

Riverina Oils will also produce 105,000 tonnes a year of vegetable protein meal for the Australian poultry, dairy and animal feed industry.