Godrej Inds perks up 15.39% on food division sale to Godrej Tea

DALAL STREET SPIKES

Godrej Industries reached an all time high of Rs 517.70 and gained 15.39 per cent to close the day at Rs 511.45 after the company's board approved the sale of foods division to Godrej Tea for a consideration of Rs 70 crore. 1.28 lakh shares were traded on the BSE as against average of 18 thousand shares.

Godrej Industries is expected to sign an agreement with Godrej Tea for sale of the foods division shortly. Its board has also approved an investment of up to Rs 100 crore in Godrej Tea of which Rs 70 crore will be spent on expansion or acquisitions.

Last month, the company's foods division launched two new variants of Sofit, a flavoured Soya milk brand (Kesar pista elaichi and malt chocolate). For the third quarter ended December 2005, the company reported a 61 per cent increase in profit after tax to Rs 22.6 crore.

Total income declined to Rs 190.50 crore from Rs 206.57 crore in the year-ago period. Godrej Industries sub-subsidiary - Golden Feed Products (subsidiary of Godrej Agrovet) had earlier signed an agreement with Higashimaru Feeds (I), Cochin to take over their shrimp feed marketing business effective from 31 October 2005.