Godrej Agrovet signs MoU with IJM Plantations

Mumbai, Sep 23: Godrej Agrovet Ltd (GAVL) today signed a Memorandum of Understanding (MoU) with IJM Plantations Berhad, Malaysia to outline a Joint Venture (JV) in palm oil business here.

The MOU was signed in presence of Minister of Plantation Industries and Commodities, Malaysia, Mr Datuk Chin Fah Kui. The Joint Venture is expected to give a boost to the oil palm development in India.

The MoU provides the framework and establishes the areas of collaboration that include procuring oil palm planting materials, raising nurseries supply of seedings and provision of agronomic assistance oil palm farmers in India and processing of oil-palm crop.

After signing the MoU, Mr Velayuthan Tan,CEO and MD, IJM Plantations Berhad told reporters that the strength and experience of Godrej Agrovet combined with our knowledge and expertise in this business will help us to rapidly expand palm oil business in India.

''As both the Groups share excellent track record, I am confident that we will together be able to bring in the best to the growing palm oil business in India,'' he added.

Meanwhile, C K Vaidya, MD Godrej Agrovet also stated that signing of this MoU is the first step towards a promising venture that would boost our palm oil business in the country. We are certain that this JV will bring together the vast experience of Godrej Agrovet and the technical know-how of IJM Plantation to move up the palm oil business chain, he added.

GAVL is the largest oil palm processing in India. It has about 10,000 hectares of oil palm in the states of Andhra Pradesh (AP), Goa and Karnataka. Oil mills have been set up in AP and Goa. Oil palm plantation development activities have also been taken up in Gujarat, Orissa and Mizoram.

GAVL has put together a dedicated extension team that helps oil palm growers realize full benefit of planting oil palm. It has also set up shops providing farmers with seeds,fertilizers, pesticides, technical guidance on cultivation and 100 per cent buyback of fresh fruit bunches, he added.

UNI