Godrej Agrovet forms JV with Tyson Foods

Mumbai: Poultry feed major Godrej Agrovet has forged a 49: 51 joint venture with the US-based Tyson Foods in which the latter would hold a majority stake.

A new joint venture company — Godrej Tyson Foods — has been formed for poultry processing and marketing. It is expected to combine Tyson’s processing and product development expertise with Godrej’s strengths in foodservice marketing and supply chain management.

In addition to Godrej Agrovet’s existing brands such as Real Good Chicken and Yummiez, the joint venture company would launch new international chicken products/brands and at the same time develop innovative poultry solutions for the foodservice industry and modern retailers.

Without disclosing the amount of capital infused by each company into the venture, Mr Balram Yadav, CEO, Godrej Agrovet, said, “As a result of this joint venture, there would be value additions made in the existing business by Tyson Foods in terms of processing, product development and consumer retail.”

While the Rs 1,200-crore Godrej Agrovet is a market leader in animal feeds, it also has other businesses such as agri-products and oil palm. The $26.9-billion Tyson Foods is one of the world’s largest meat processor and food production companies.

Godrej Tyson Foods would focus on serving the growing demand for quality poultry in India with processed and value-added chicken products.

“Today’s convenience-seeking consumer is looking for great-tasting, safe, and healthy poultry products that don’t compromise quality. The joint venture will deliver new processed and value-added products to satisfy these needs,” added Mr Yadav.

Commenting on the newly formed joint venture, Mr Rick Greubel, President (International), Tyson Foods Ltd, said: “The $3-billion (Rs 12,000 crore) Indian poultry market represents a tremendous opportunity with processed and value-added chicken currently comprising only 6 per cent of the market.”

According to data supplied by Godrej Agrovet, since the year 2000, the Indian poultry market has grown faster (10 per cent CAGR) than other developing and developed markets but per capita consumption at 1.8 kg/capita/year is comparatively lower and presents a tremendous opportunity for future growth.