Godrej Agrovet Sews Up Goldmohur Buy

Godrej Agrovet, part of the Rs 4,000 crore Godrej group, has acquired the balance 26 per cent stake in Goldmohur Foods and Feeds from consumer goods giant Hindustan Lever Ltd (HLL), for an undisclosed sum. Following the acquisition, Goldmohur Foods becomes a 100 per cent subsidiary of Godrej Agrovet.

In January this year, Godrej Agrovet had acquired 74 per cent stake in Goldmohur Foods. HLL had hived off Goldmohur Foods in to a separate company. The exit of HLL from the animal feed business is in line with its UK-based parent's global strategy.

In the last few months, effective steps had been taken to arrest falling volumes and Goldmohur Foods' operating profits have more than doubled in April-August 2001 compared with those of same period last year.

Adi Godrej, chairman of Godrej group said, "We have now integrated the operations of this business and the expected synergies of the combined operations, specially in the areas of procurement and R&D, are being realised. We expect the two businesses to co-exist and grow the compound feed markets in India."

Goldmohur Foods, with a turnover of about Rs 290 crore, enjoys a market share of about 12 per cent in the organized sector. It sells its feeds under the brand name Gold Mohur in the poultry and cattle feed markets and. Godrej Agrovet also has a major presence in the animal feeds business.