Monday, February 12, 2001
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Godrej Agrovet not to merge sales forces with Goldmohur Foods 

Namrata Singh  
Mumbai, Feb 11 : Godrej Agrovet, which recently acquired Hindustan Lever's animal feeds business "Goldmohur Foods & Feeds", has decided not to merge the sales forces of the two companies.

"We will nurture both the businesses without merging the sales forces of Goldmohur Foods & Feeds with Godrej Agrovet. Thus, the products of both the companies will compete in the market place and we will grow in a healthy manner," company managing director SL Anaokar told The Financial Express.The sales force strength of Godrej Agrovet is 85 personnel, while that of Goldmohur Foods & Feeds is 65.

At present, the companies are in a cross learning process to share best practices and understand the strengths and weaknesses of each other. A strategy for the future will be chalked out after the two companies understand each other's business.

"Goldmohur Foods & Feeds is strong in cattle feed, while Godrej Agrovet is strong in broiler and cattle feed. What is more important is that we can now leverage on our combined expertise of controlling the 800,000 tonnes of feed market, which will give us a good bargaining power and help in formulating better strategies," Dr Anaokar said.

On a better bargaining power, the companies can expect to get an incremental 10 per cent to 12 per cent improvement on the pricing front, resulting in better volume offtake.

Godrej Agrovet, a subsidiary of Godrej Soaps Ltd, is a leading player in the animal feeds and agricultural inputs market. It acquired 74 per cent from Hindustan Lever in Goldmo0hur Foods & Feeds.

The deal has made Godrej Agrovet the leader in its major area of animal feeds business. The joint venture (JV) is also said to derive considerable synergies in the business as Goldmohur Foods & Feeds is leads in animal feeds and Agrovet in the poultry and cattle feed.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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