Godrej Agrovet has joined a few other bidders, including Patanjali Ayurved group and Adani Wilmar, for acquiring the oil palm business of Ruchi Soya Industries, which is facing insolvency proceedings.
Godrej Agrovet has joined a few other bidders, including Patanjali Ayurved group and Adani Wilmar, for acquiring the oil palm business of Ruchi Soya Industries, which is facing insolvency proceedings. According to Balram Singh Yadav, managing director (MD), Godrej Agrovet, the committee of creditors (CoC) is expected to meet the next week to finalise the bids.
“We are in the race. We have made the bid through the National Company Law Tribunal (NCLT). The CoC might take a week’s time to open the bids. We are keen on Ruchi Soya’s oil palm plantation business as we also have similar business and know that business very well,” he said. In December 2017, Ruchi Soya had a debt of Rs 12,000 crore and entered the corporate insolvency resolution process and Shailendra Ajmera was appointed the interim resolution professional (RP).
Meanwhile, Creamline Dairy Products (CDPL), a subsidiary of the Rs 5,200-crore turnover Godrej Agrovet, is planning a Rs 400-crore expansion to increase the processing and procurement capacities. It is planning three greenfield plants in Tamil Nadu, Karnataka and Maharashtra over the next three to four years. Creamline, with its brand Jersey, has an installed capacity to process over 12 lakh litres per day and procures from farmers across the five southern states.
Talking to media, after launching its entry into value-added products segment, K Bhasker Reddy, MD, said: “As part of our expansion and get a bigger share in the dairy industry, we have decided to set up three greenfield manufacturing plants taking to the total number of plants to 14 in the next three to four years. This will require an investment of Rs 400 crore which will be raised through internal accruals, bank loans or a public issue,” he said.
The dairy industry is estimated to be about six lakh crore and is expected to touch 10 lakh crore by 2025. This is part of the strategy to transform into an integrated player in the Rs 6-lakh-crore dairy industry. Godrej Agrovet is the largest player in animal feed, and is increasing its presence in cattle genetics and milk procurement through CDPL.