Godrej Agrovet in pact with IJM Plantations

New Delhi, Sept 24: Godrej Agrovet Ltd (GAVL), part of the Rs 6,000 crore Godrej Group, has signed an MoU with Malaysia's IJM Plantations Berhad to set up a joint venture company that will initially invest Rs 200 crore in the Indian oil palm sector.

''The JV company will be a separate company, a subsidiary of GAVL, and the contract will be finalised in the next three to six months,'' Godrej Group Chairman Adi Godrej said.

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

GAVL, a leading palm oil processor, has about 10,000 hectares of oil palm plantations in Andhra Pradesh, Goa and Karnataka, plantation development activities have also been taken up in Gujarat, Orissa and Mizoram by the company.

''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. I am confident that we will together bring in the best to the growing palm oil business in India,'' IJM Plantations CMD Velayuthan Tan stated.

IJM has oil palm plantations of over 30,000 hectares comprising of 11 estates in Sandakan, Sabah. The division has three palm oil mills capable of processing 10,00,000 tonnes of oil palm fruits per year.

UNI