Godrej Agrovet Ltd. will acquire the remaining 49% stake in its joint venture with American packaged food retailer Tyson Foods' India unit for Rs 323 crore. The board on Thursday approved a share purchase agreement with Tyson India Holdings Ltd. and Godrej Tyson Foods Ltd. for the acquisition of 97,461 equity shares of GTFL, making it a wholly owned subsidiary.
The transaction is expected to be completed by Aug. 31.
Godrej Tyson Foods was set up in 2008 and is involved in the production, processing and preservation of meat, fish, fruit, vegetables, oils and fats. It markets products through household brands like 'Real Good Chicken' and 'Yummiez'. The company had a turnover of Rs 986 crore in the financial year 2024.
The board also approved an initial investment of up to Rs 110 crore to set up a new feed plant in Maharashtra. The project is proposed to be funded through a mix of internal accrual and debt, if need be, the company said.
Godrej Agrovet reported a 23% rise in consolidated net profit at Rs 132 crore in the first quarter of fiscal 2025, as compared to Rs 107 crore last year. Analysts' estimates compiled by Bloomberg projected it at Rs 130 crore.
Revenue, however, declined 6.4% to Rs 2,351 crore in the June quarter, as compared to an estimated Rs 2,620.73 crore.
Shares of Godrej Agrovet closed 1.97% lower at Rs 834 apiece, as compared to a 0.15% advance in the benchmark BSE Sensex. The announcement came after market hours.
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