MUMBAI
Godrej Agrovet Ltd. (GAVL), a diversified food and agri-business company, has signed a definitive agreement with Tyson India Holdings Ltd., an affiliate of Tyson Foods, Inc. to buy it’s 49 per cent stake in Godrej Tyson Foods Limited (GTFL), a subsidiary of GAVL for ₹322.8 crore.
Following the completion of the transaction, GAVL will now hold 100% stake in GTFL thereby further consolidating its business, it said in a filing.
In 2008, GAVL had entered into a joint venture with an affiliate of Tyson Foods, Inc. to manufacture and market processed poultry and vegetarian products. Selling products under its brands ‘Real Good Chicken’ and ‘Yummiez’, GTFL is also into the sale of live poultry birds in the market.
“Our partnership with Tyson Foods has been very enriching. Enabling us to leverage their capabilities in vertically integrated poultry processing and product development, it enabled us to modernize the way high quality poultry products are developed, produced and distributed in our country,” said Balram Singh Yadav, Managing Director, Godrej Agrovet Ltd. in a statement.
“The household penetration of frozen snacks in India is below 6%, indicating ample room for expansion. Hence, as we continue to focus on branded business supported by a cost-efficient live bird production system, our endeavour is to strengthen our portfolio and increase our presence across different channels,” he added.
GAVL’s Board has also approved an initial investment upto ₹110 crore to set up a new feed plant in Maharashtra. The project is proposed to be funded through a mix of internal accruals and debt, if need be, it said.
