Godrej Industries subsidiary Godrej Agrovet signs MoU with IJM Plantations Berhad, Malaysia

Godrej Industries Ltd has announced that Godrej Agrovet Ltd (GAVL) a materially non-listed subsidiary of the Company on September 23, 2006 has signed a Memorandum of Understanding (MoU) with IJM Plantations Berhad, Malaysia to outline a Joint Venture in palm oil business in the presence of Honourable Minister of Plantation Industries and Commodities, Malaysia - Datuk Peter Chin Fah Kui. The Joint Venture is expected to give a boost to the oil palm development in India.

The MoU provides the framework and establishes the areas of collaboration, that include procuring oil palm planting materials, raising nurseries, supply of seedlings and provision of agronomic assistance oil palm farmers in India and processing of oil-palm crop.

GAVL is the largest oil palm processor in India. It has about 10000 hectare of oil palm in the states of Andhra Pradesh (AP), Goa and Karnataka. Oil mills have been set up in AP & Goa. Oil palm plantation development activities have also been taken up in Gujarat, Orissa and Mizoram. GAVL has put together a dedicated extension team that helps oil palm growers realize full benefit of planting oil palm. It has also set up one stop shops providing farmers with seeds, fertilizers, pesticides, technical guidance on cultivation and 100% buyback of fresh fruit bunches.

While signing the MoU Mr C K Vaidya Managing Director, Godrej Agrovet Ltd said "We are happy to announce our international alliance with IJM Plantations Berhad, Malaysia. Signing of this MoU is the first step towards a promising venture that would boost our palm oil business in the country. We are certain that this JV will bring together the vast experience of Godrej Agrovet and the technical know-how of IJM Plantations to move up the palm oil business value chain."

Source : Equity Bulls

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