Acquisition to cost Rs. 572 crore

Temasek, the Singapore-based investment company, has entered into agreements to acquire 19.99 per cent stake in Godrej Agrovet Ltd. (GAVL), a subsidiary of Godrej Industries, for Rs.572 crore.

A statement from GAVL said the investment would be a combination of primary and secondary investment with the primary investment intended to support GAVL’s expansion plans. HSBC acted as advisor to the transaction.

GAVL reported sales of Rs.2,460 crore in 2011-12 and has interests in animal feed, oil palm, agri-inputs and poultry. Its animal feed division produces more than 1.1 million tonnes annually of feed and nutrition products for dairy cattle, poultry and aquaculture.

Its oil palm business manages over 45,000 hectares of smallholder cultivation across several States. In agri-inputs, the company has a strong share in plant growth promoters and herbicides while the poultry business is a joint venture with Tyson Foods of the U.S.

GAVL has 45 manufacturing facilities, over 10,000 dealers and more than 2,000 employees.

In a statement, Balram Sing Yadav, Managing Director, GAVL, said, “We are aggressively expanding rural distribution, increasing our manufacturing capacities and launching cutting edge technologies for farmers”.

“Godrej Agrovet has been a tremendous source of value creation for Godrej Industries and continues to be on a strong revenue and profit trajectory, while delivering excellent returns on capital employed,” Nadir Godrej, Chairman, GAVL, said in a statement.

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