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| Edited By: Ashish K Tiwari |Source: DNA |Updated: Mar 19, 2018, 02:05 AM IST
Singapore-based sovereign wealth fund Temasek will acquire 19.99% stake in Godrej Agrovet, a subsidiary of Godrej Industries, for Rs572 crore.
The deal, which could well be the single largest alternative investment in the Indian FMCG space, values the company at Rs2,860 crore.
Temasek will acquire the stake through a combination of primary and secondary market transactions, though Godrej did not give the exact size and other details of each of these, or of the investment firms looking to exit through this placement.
The primary component will be used to support Godrej Agrovet’s future expansion plans, the company said in a filing, without sharing details on the nature of the expansion it was planning.
A diversified agribusiness company with interests in animal feed, oil palm, agri-inputs and poultry, Godrej Agrovet had sales of `2,460 crore last fiscal.
It has been a tremendous source of value creation for Godrej Industries, said Nadir Godrej, its chairman. “It continues to be on a strong revenue and profit trajectory while delivering excellent returns on capital employed.”
The company has over the past few years aggressively expanded its rural distribution, increased manufacturing capacities and launched cutting-edge technologies for farmers.
“Partnering with Temasek will further accelerate our performance,” said Balram Singh Yadav, managing director, Godrej Agrovet.
Incidentally, this is Temasek’s second investment in the Godrej group this year – the investment firm had in January bought 4.9% stake in Godrej Consumer for $135 million.
