The Rs 3,450-crore Godrej group has undertaken an internal restructuring of the holding structure of Godrej Foods.
Godrej Industries (formerly known as Godrej Soaps) and Swadeshi Detergents, a wholly owned subsidiary of Godrej Industries, are divesting their stake in Godrej Foods to Godrej & Boyce, the unlisted holding company of the group.
Godrej & Boyce proposes to acquire 22.6 lakh shares, or 7.96 per cent of Godrej Foods, from Godrej Industries and Swadeshi Detergents at a price of Rs 1.75 per share, the company informed the BSE today. After the acquisition, Godrej & Boyce will hold 49.75 per cent of the paid-up capital of Godrej Foods. According to company sources, it is just a internal transfer of shares within the group and Godrej Foods will continue to be listed on the stock exchanges.
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The group has recently merged the manufacturing business along with other key functions of Godrej Foods with Godrej Industries. Post-merger, Godrej Foods is left with the trading business.
Over the last couple of years, the processed food and edible oils manufacturing activity of Godrej Foods has witnessed declining profit margins, resulting in significant erosion in net worth. Godrej Foods has manufacturing facilities at Mumbai, Bhopal and Mysore. It is involved in the manufacture and marketing of edible oils and fruit drinks under the brand names Jumpin and Xs. The brand rights are now owned by Godrej Industries.
Godrej Soaps has demerged the consumer products division (soaps and toiletries) into a separate company called Godrej Consumer Products.
Godrej Soaps has been renamed Godrej Industries.