Godrej Industries, Godrej Tea and IL&FS Investment Managers (IIML) signed a shareholders agreement by which IIML through the funds managed by it - Leverage India Fund and Sara Fund - would invest Rs 60 crore in Godrej Tea to acquire a 40% stake.According to a release issued by Godrej Industries to the BSE today, the company signed an agreement with Godrej Tea to sell its foods business (excluding the manufacturing facility at Wadala, Mumbai) with effect from the close of working hours on March 31, 2006."According to the terms of the agreement, Godrej Tea will pay the company Rs 40 crore in cash and Rs 30 crore in the form of shares, aggregating to a total consideration of Rs 70 crore," the release added.Godrej Tea is proposed to be renamed as Godrej Beverages and Foods to reflect the combined business, the release said.A B Godrej, chairman of Godrej Industries, said: "The consolidation of the two foods businesses would help realise synergies in the areas of manufacturing, marketing and distribution. The equity infusion would also help the company to scale up the business and add value to its shareholders."
