Godrej Agro, ACI to form JV in Bangladesh

Godrej Agrovet Ltd (GAVL) has entered into a 50:50 joint venture with Advanced Chemical Industries Ltd (ACI) of the Bangladesh to set up animal feed and poultry businesses in that country.

An agreement to this effect was signed between Nadir B Godrej, chairman of GAVL, and Anis Ud Dowla, chairman of ACI, on June 20. The joint venture company has been christened ACI Godrej Agrovet Pvt Ltd. It will set up feed mills, poultry breeding, hatchery and poultry rearing operations in Bangladesh.

Announcing the joint venture, C K Vaidya, managing director, Godrej Agrovet, said, "We are happy to enter into this joint venture with ACI, especially since it is a highly reputed company having diverse businesses that will help leverage this joint venture. We already have an existing relationship with ACI for the distribution of Godrej Sara Lee products."

ACI has a presence in various sectors such as pharmaceuticals, agro-chemicals, fast moving consumer goods and household insecticides.

ACI is listed on the Dhaka and Chittagong stock exchanges and has joint ventures with several Indian and global companies.

ACI also distributes household insecticides marketed by Godrej Sara Lee Bangladesh Ltd. The joint venture company is expected to commence operations early next year and help further improve competitiveness of Godrej Agrovet.

Godrej Agrovet belongs to the Rs 4,500 crore Godrej group, and is a major player in the Indian agricultural sector with a large presence in cattle, poultry and aqua feeds, innovative agricultural inputs, oil palm plantation and plant biotech.

In 2001 it acquired Goldmohur Foods and Feeds Ltd, an erstwhile subsidiary of Hindustan Lever Ltd.

With a turnover of Rs 800 crore in 2003-04, Godrej Agrovet is the largest seller of animal feeds in India and has pioneered the concept of processed, fresh, chilled chicken with the launch of Real Good Chicken and has retail outlets in Mumbai, Pune, Chennai, Bangalore and Hyderabad.