Godrej Agrovet Limited (GAVL) is a diversified agribusiness Group with operations across 5 business verticals comprising of animal feed, crop protection, oil palm, dairy and poultry and processed food
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s. The Company focuses on improving the productivity of farmers by innovating products and services that sustainably increase crop and livestock yields.
GAVL has a pan India presence with sales of over a million tonnes annually of high quality feed and cutting-edge nutrition products for cattle, poultry, aqua feed and specialty feed. Apart from these businesses, the company has two joint ventures - one with Tyson Foods Inc., USA in the processed poultry segment and other one with the ACI group of Bangladesh for animal feed business in Bangladesh.
Godrej Agrovet Limited was incorporated as a private limited company with the name 'Godrej Agrovet Private Limited' on November 25, 1991 in the state of Gujarat. The company became a deemed public limited company and the word 'private' was struck off from the name of the Company with effect from April 27, 1992.
In 1992, the company acquired the agrovet division of Godrej Soaps Limited. In 1997, the company acquired the oil palm business from Godrej Soaps Limited. In 1999, the company acquired poultry business from IPF Breeders Private Limited.
The company was converted into a public limited company and the name of the company was changed to Godrej Agrovet Limited' on February 19, 2002.
In 2004, the company entered into a joint venture with the Advanced Chemical Industries Limited (ACI) Group from Bangladesh, to manufacture and sell Compound Feed. The ACI-Godrej Agrovet joint venture ranks among the top three feed companies, across all categories in Bangladesh.
The company entered the dairy business with acquisition of 26% equity interest in Creamline Dairy Products Limited in 2005. Creamline Dairy Products has significant presence in Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharashtra, under the 'Jersey' Brand name. It also has a very interesting value-added product portfolio like Curd, Flavored Yogurt, and Ice Cream among others.
During the year under review, the company acquired 26% stake in Polchem Hygiene Laboratories Private Limited. During the year under, the company acquired shrimp feed business from Higashimaru Feeds (India) Limited.In 2012, V-Sciences made investment in Godrej Agrovet Limited by acquiring 19.99% equity stake.
In 2015, Godrej Agrovet acquired promoter holding in Astec Life Sciences Limited. Astec is a business to-business tech, bulk manufacturer of fungicides in India. It also has a contract manufacturing presence and counts multinational agro chemical companies like Sumitomo and Nufarm, among its clients. It has established a successful track record in nurturing stable and long term relationships with highly reputed companies in U.S.A., Europe, West Asia, South East Asia and Latin America.
During the year under review, Godrej Agrovet increased its stake from 26% to 52% in Creamline Dairy.
In 2016, Godrej Agrovet sold its 26% stake in Polchem Hygiene Laboratories Private Limited.
The company came out with an initial public offer (IPO) during the period from 4 October 2017 to 6 October 2017. The IPO comprised of fresh issue of Rs 291.51 crore. The IPO also comprised of offer for sale of 1.23 crore shares by V-Sciences Investments Pte Ltd (an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited) and offer for sale of Rs 300 crore by pomoters Godrej Industries. The stock debuted at Rs 621 on BSE on 16 October 2017, a premium of 35% compared to the IPO price of Rs 460 per share.
On 23 January 2018, Godrej Agrovet announced that Maxximilk Private Limited had also allotted 2.16 % of the Equity Share Capital to Anamudi Real Estates LLP on Preferential basis. Consequently, the shareholding of Godrej Agrovet Limited in Maxximilk Private Limited on 18 January 2018 was less than 50% instead of 51% as informed earlier vide letter dated 18 January 2018. Hence, Maxximilk Private Limited is not a subsidiary of Godrej Agrovet Limited.
On 11 May 2018, Godrej Agrovet announced that it has increased its total shareholding from 49% to 49.9% in Godrej Tyson Foods Limited (GTFL) by way of purchase of additional 0.9% of the total Paid-up Equity Share Capital from GTFL's existing member viz., Tyson India Holdings Limited with effect from 10 May 2018.
On 17 May 2018, Godrej Agrovet's subsidiary Creamline Dairy Products Limited (CDPL) announced that as a part of its expansion plans, it intends to invest Rs 400 crore in 3 greenfield milk processing plants in Tamil Nadu, North Karnataka and Maharashtra over the period of next three years. Further, CDPL may plan to raise funds through debt or by way of public issue, if required, subject to necessary approvals.
The Board of Directors (Board) of Godrej Agrovet at its Meeting held on 14 September 2018 considered and approved the amalgamation of Astec LifeSciences Limited (Astec) with Godrej Agrovet Limited (GAVL) in consideration for Equity Shares of GAVL. The proposed amalgamation would be carried out vide a Scheme of Amalgamation of Astec LifeSciences Limited with Godrej Agrovet Limited and their respective Shareholders (the Scheme) under Sections 230 to 232 of the Companies Act, 2013 and other applicable provisions, if any, of the Companies Act, 2013. In consideration for the amalgamation of Astec with GAVL, GAVL will issue and allot 11 (Eleven) fully paid up equity shares of Rs. 10 /- each to the Equity Shareholders of Astec as on Record Date, for every 10 (Ten) fully paid up equity shares of Rs. 10/- each held by them in Astec.
During the year 2019, Company has taken multiple steps to increase its product offering and increase connect with farmers and distributors. It introduced products across categories such as Reflex, Pixel, Annova, Beleaf, Czaar Green etc. with the objective of upgrading product portfolio from solo to ready mix products. Marketing team also worked towards redesigning and standardizing product designs, emplates and marketing collateral which helped to increase brand awareness. Apart from this, it launched a digital platform named - Drishtikon, to promote seamless communication with distributors and promote transparency. The application was launched in November 2018 with the channel partners and witnessed high subscription from distributors.
In the dairy business, Company's subsidiary, Creamline Dairy Products Limited (CDPL), launched new products in FY 2018-19 with the purpose of increasing product offering. New product launches included products like thick milk shakes in different flavors, premium range of ice-creams and yogurts in different flavors. All new products received encouraging response from customers. CDPL also set up a new Ultra-high temperature (UHT) milk processing facility in Hyderabad plant for supplying the UHT Milk.
The Company increased stake in Godrej Tyson Foods Limited (GTFL) to 51% on March 27, 2019 and thereby the latter became a subsidiary from a Joint Venture. During FY 2019, Poultry & Processed Foods Business focused on increasing the product portfolio in Yummiez' product range and on growing the live bird business. In the Yummiez' portfolio, GTFL launched the Royale' product range to include new chicken products in the portfolio. It focused on increasing brand visibility through outdoor advertising in key cities in which it operates. Further, Ludhiana plant, which was set up for increasing vegetarian processed food product range is now ready and GTFL plans to launch to new vegetarian range in coming fiscal year. Godrej Tyson Foods and Godrej Maxximilk became majority owned subsidiaries in 2019.
In CFY 2019-20, Company launched Hitweed Maxx' which is an in-house herbicide and a one-stop solution for controlling all major weeds in the cotton crop. It launched Hanabi', through an in-licensing arrangement with Nissan Chemical Corporation, Japan, which is used for managing mites in tea plantation. In addition, other products such as Bloxit, Veteran, Prudens and Rohelus were launched, which not only enhanced product portfolio but also helped Company to enter new crops and new markets.
During the year 2021, the Company launched a cattle feed product Samruddhi' in the western region. In the Dairy segment, it re-branded product portfolio under the new Godrej Jersey' logo and have also started selling Jersey ghee in parts of Maharashtra. In Crop Protection, it has partnered with other large agrochemical companies to increase the distribution reach of in-house and in-licensed products.
During the FY 2020-21, there has been considerable progress on R&D projects undertaken to increase the oil extraction ratio from the Fresh Fruit Bunches(FFBs). Further, the Company also worked on increasing area under plantation and currently has around 75,000 hectares under palm oil cultivation. Also, the Department of Horticulture, Telangana, allotted to the Company for oil palm cultivation and the district has a development potential of 28,164 hectares.
During year 2020-21, Creamlime Dairy Products Limited (CDPL) focused in strengthening the marketing position and increasing the brand awareness. Additional Jersey parlours, Jersey distribution centers and digital platforms were set up to increase brand awareness and market share. CDPL also re-launched the entire product portfolio under a new Godrej Jersey' logo. In the key southern markets, Mysore Pak' was introduced and Jersey Ghee' was launched in Maharashtra (Mumbai).
In FY 2021, Astec LifeSciences commissioned a new herbicides plant in Mahad.
In the Animal Feed business, the Company launched two new products 'Doodh Vriddhi' and 'Champion' in year 2022. In the Crop Protection segment, it launched two new products - Protraitt (herbicide) and Gracia (insecticide). Gracia has further strengthened its collaboration with Nissan after introduction of Hanabi. Its subsidiary, Astec LifeSciences Limited, commissioned two new products under Contract Development and Manufacturing Organisation (CDMO) category during the year. The Dairy subsidiary, Creamline Dairy Products Limited (CDPL), introduced new variants of its Jersey Recharge energy drink, fruit yogurt, as well as, paneer and ghee. Company also launched Jersey milk beverages in the Northern States. Moreover, CDPL registered strong market share gains in Curd, milk drinks and ghee categories in key South Indian markets as well.
During the year 2022, the Company participated in the Carbon Disclosure Project (CDP) under carbon and forests categories, becoming one of the first companies in the agri sector. In February 2022, GAVL's Crop Protection segment launched new insecticide Gracia, by extending in-licensing arrangement with Nissan Chemical Corporation, Japan.
During the year 2023, the Company subscribed to Rights Issue of 5,88,236 Equity Shares of Godrej Maxximilk Pvt. Ltd (GMPL) for a consideration of Rs 20 Crores and Godrej Maxximilk Pvt. Ltd (GMPL) became 100% wholly owned subsidiary of the Company. Similarly, the Company acquired 2,95,038 Equity Shares of Astec LifeSciences Limited for a consideration of Rs 55.36 crores and resultant, the shareholding of Astec LifeSciences Limited increased from 63.29% to 64.77%.
In Mar' 23, the Company launched a new variant in flavoured milk category, called 'Milky Shots' in Chocolate and Coffee flavors. It commissioned a new Fish feed manufacturing facility in Uttar Pradesh during 2023. In Apr'23, the Company's subsidiary, Astec opened a new centre, named 'Adi Godrej Centre for Chemical Research and Development' in Rabale, Maharashtra. The Dairy Subsidiary of the Company, Creamline Dairy Products Limited (CDPL) commissioned a new packaging line thereby enhancing its capacity from 20,000 LPD to 70,000 LPD.
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