Godrej Agrovet in joint venture pact with Malaysia's IJM Plantations

Mumbai: Godrej 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 will involve an initial investment of Rs 200 crore, Adi Godrej, Godrej Group chairman, said.

The 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 crop.

The 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", he added. "Our company already has 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 Tan said.

GAVL 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.

Godrej 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 various businesses, ranging from foods and consumer durables to real estate and information technology.