Godrej Agrovet Ltd. announced on Friday that it has signed a share purchase agreement with the promoter group of Creamline Dairy Products Ltd. to buy a 47.38% equity stake in Creamline Dairy Products.
On March 12, Godrej Agrovet announced that it would acquire the remaining 48.06% stake in Creamline Dairy Products Ltd. for Rs 930 crore. The move will make the Godrej Jersey brand owner, which is one of the leading private dairy companies in South India, Godrej Agrovet's wholly owned subsidiary, according to the company's exchange filing.
The decision follows the approval by the Godrej Group company's board on March 12. Godrej Agrovet stated that the objective of the acquisition is to consolidate the company's position in Creamline Dairy Products.
Earlier today, Creamline Dairy Products, under its brand Godrej Jersey, has unveiled its strategy for fiscal 2025-26. "The initiative aims to expand the company's product range, drive higher market penetration, and enhance consumer experience through continuous innovation," according to an exchange filing.
The company is to focus on three core products—badam milk, paneer, and curd—to become a dominant force in the dairy value-added portfolio, the filing said.
"With an expected 50% increase in research and development spending in fiscal 2025-26, Godrej Jersey is set to launch new, innovative products that will enhance its offerings, strengthen its market leadership, and improve consumer experience," the company said.
Shares of Godrej Agrovet closed 1.29% higher at Rs 768.30 apiece, compared to the 0.69% advance at the benchmark NSE Nifty 50. It has risen 53.24% in the last 12 months.
Four out of the six analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 55.2%.
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