Godrej Agrovet Limited (GAVL), a subsidiary of Godrej Industries Ltd, has picked an additional 25% stake in south Indian dairy company, Creamline Dairy Products Ltd, for Rs 150 crore. GAVL is already an existing shareholder in the company with a stake of 26%.
“We have been shareholders of Creamline over the past 10 years and have seen the company build a highly successful dairy business during this time. As the company embarks on its ambitious future growth plan, we believe GAVL will be able to bring in significant value to the business by helping it develop successful brands and add more value added products to its current portfolio. The existing management of the company would continue to operate as usual,” Balram Yadav, Managing Director, GAVL, said in a statement.
To extend its geographical foot print and fuel its future growth, Creamline is in the process of intensifying its procurement operations in Telangana, Andhra Pradesh, Tamilnadu, Karnataka and Maharastra and has forayed to setup three processing facilities along with facilities for value added products. It expects to increase its focus on the “Value added products” and new geographies to drive its future growth.
“GAVL is one of the largest animal feed companies with significant cattle feed presence. As we expand our business, we think GAVL will add significant value to our business through their long association with Indian dairy farmers and knowledge on building long lasting brands,” said K Bhaskar Reddy, Managing Director, Creamline Dairy
Creamline Dairy is a prominent dairy company in south India with significant operations across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Nagpur. The company has very strong farm linkages across the four southern states, which assures it quality milk supply around the year.
The retail presence of the company is strengthened by its “Jersey” Brand of milk and its derivatives. The company, with a capacity of nearly seven lakh litre of milk processing a day, reportedly had revenues of R858 crore for the year-ended March, 2015.