Godrej Agrovet to invest Rs 70 cr in Andhra Pradesh dairy, oil palm expansion

New Delhi, Nov 13 (PTI) Godrej Agrovet Ltd on Thursday signed a non-binding memorandum of understanding (MoU) with the Andhra Pradesh state government to invest Rs 70 crore to expand dairy processing capacity and establish farmer support centres.

The investment will go toward expanding dairy processing and value-added product facilities through its wholly owned subsidiary Creamline Dairy Products Ltd, which operates under the Godrej Jersey brand, and setting up five new Samadhan Centers -- a one-stop service hubs for oil palm farmers.

The MoU was signed in the presence of Andhra Pradesh Chief Minister Nara Chandrababu Naidu, along with Sunil Kataria, Managing Director and CEO of Godrej Agrovet, and Rakesh Swami, Group President of Corporate Affairs at Godrej Industries Group, according to a regulatory filing.

"Strengthening the agri-food processing sector is imperative for farmers of our soil to prosper," Naidu said.

"I am confident that this partnership will not only help strengthen our agricultural ecosystem but also create sustainable livelihoods for the community at large while driving economic growth." The dairy expansion will be executed in three phases, the company said without providing a timeline.

Godrej Agrovet's oil palm business, which the company describes as India's largest oil palm processor, works directly with farmers throughout the crop lifecycle. The new samadhan centres will provide oil palm farmers with knowledge, tools, services and technical solutions.

"Today's MoU is a testimony of our intent to strengthen our agri-food processing capabilities while continuing to empower farmers," Kataria said.

Swami said Andhra Pradesh has been a key state for the Godrej Industries Group, adding that the company remains committed to expanding its footprint across consumer, real estate and finance businesses in the state. PTI LUX TRB