Agrovet Ltd (GAVL) has signed a memorandum of understanding
(MoU) with IJM Plantations Berhad of Malaysia to set
up a joint venture company in India. The joint venture
would involve an initial investment of Rs200 crore,
Adi Godrej, Godrej group chairman, said.
MoU covers the areas of collaboration, including procurement
of oil palm planting materials, raising nurseries, supply
of seedlings and provision of agronomic assistance to
oil palm farmers in India and processing of the oil-palm
joint venture, a subsidiary of GAVL, will function as
a separate company, which in turn is a subsidiary of
Godrej Industries Ltd. In the next three to six months
we will finalise the contract, headded.
"Our company is already having the licence to produce
bio-diesel in Malaysia and we should do that in mid-2007.
But, currently there are no India-specific plans drawn
out," IJM Plantation Berhad CEO and MD Velayuthan
has about 10,000 hectares of oil palm in Andhra Pradesh,
Goa and Karnataka while the company has taken up oil
palm plantation activities in Gujarat, Orissa and Mizoram.
Agrovet, a group company of the Rs 5,500-crore ($1.25
billion) Godrej group, is the market leader in animal
feeds and innovative
agricultural products in India. The Godrej group has
a well-established presence in varied business ranging
from foods and consumer durables to real estate and