MUMBAI:
Godrej Agrovet
, controlled by brothers Adi Godrej and Nadir Godrej, is buying out US-based Tyson Foods’ interest in the
processed poultry business
, it said on Thursday. It is acquiring the US company’s 49% stake in Godrej
Tyson Foods
for Rs 323 crore. The change in shareholding comes after 16 years and results in Tyson scaling down its play in one of the largest economies in the world.
On Thursday, the board of Godrej Agrovet approved the share purchase agreement with
Tyson India Holdings
, an affiliate of Tyson Foods, for the
acquisition
of 97,461 equity shares of Godrej Tyson Foods, which will make it a wholly-owned subsidiary of the company. The transaction is expected to be concluded before Aug-end.
Tyson entered the meat production business in India in partnership with Godrej Agrovet in 2008. The joint venture markets the products under Real Good Chicken and Yummiez brands and has a presence in more than 35 Indian cities. Godrej Tyson Foods had a turnover of Rs 986 crore in FY24.
According to Godrej Agrovet, it is consolidating its interest in the meat production venture as the household penetration of frozen snacks in India is below 6% and there is ample room for expansion. Apart from Godrej Tyson Foods, the American packaged food retailer has a technology unit in India – Tyson IT Solution – which is based in Bengaluru.
Godrej Agrovet’s board has also approved an investment of upto Rs 110 crore to set up an animal feed plant in Maharashtra. The project will be financed through internal accruals and debt, the company said. On Thursday, Godrej Agrovet reported a profit of Rs 132 crore in Q1 FY25, up 23%, and a revenue of Rs 2,351 crore during the same period, down 6%.
