Gulmohur becomes GAVL's subsidiary

By Our Staff Correspondent

MUMBAI, SEPT. 20. Godrej Agrovet (GAVL), a leading player in animal feeds, poultry and agricultural inputs market, has announced its acquisition of the balance 26 per cent stake in Gulmohur Foods & Feeds (GFFL) from Hindustan Lever.

In January this year, GAVL had acquired 74 per cent stake in GFFL which has now become a 100 per cent subsidiary of GAVL. The board of the company has been reconstituted to reflect the changes.

Mr. A. B. Godrej, chairman, Godrej Group, said, ``We have now integrated the operations of this business and the expected synergies of the combined operations, specially in procurement and R&D, are being realised. We expect the two businesses to co- exist and grow the compound feeds markets in India."

GFFL has a turnover of around Rs. 290 crores and a market share of about 12 per cent in the organised sector. It sells its feeds under the brand name `Gold Mohur'. In the past few months, steps have been taken to arrest the falling volumes and GFFL is now on a strong growth path.

GAVL is the largest player in animal feeds with a market share of about 15 per cent of the organised sector. It sells cattle feed, broiler feed, layer feed and aqua feed under the brand names Bypro, HPMR, Milk More, Crumbro, Crumegg, Kahochi, Fuso, Macro and Spark.

HLL had earlier announced its intention to exit from the animal feeds business and in line with the stated intentions, HLL, with the approval of its shareholders, had transferred its animal feeds business in April 2000 as a going concern to its then 100 per cent subsidiary GFFL.

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