Godrej Agrovet signs pact to acquire Tyson's stake in Godrej Tyson Foods

Increases its stake from 51 per cent to 100 per cent

Godrej Agrovet, one of India’s largest diversified food and agri-business conglomerates, on Thursday announced that the company had signed a definitive agreement with Tyson India, an affiliate of Tyson Foods, Inc. to buy its 49 per cent stake in Godrej Tyson Foods Limited (GTFL), a subsidiary of GAVL. 

However, the company did not disclose the amount at which the transaction will be done. Following the completion of the transaction, GAVL will now hold a 100 per cent stake in GTFL, thereby further consolidating its business.

GAVL entered into a joint venture in 2008 with an affiliate of Tyson Foods, Inc. to manufacture and market processed poultry and vegetarian products. Selling products under its brands 'Real Good Chicken' and 'Yummiez', GTFL is also engaged in the sale of live poultry birds in the market.

 

“Our partnership with Tyson Foods has been very enriching. Enabling us to leverage their capabilities in vertically integrated poultry processing and product development, it enabled us to modernise the way high-quality poultry products are developed, produced, and distributed in our country,” said Balram Singh Yadav, managing director, Godrej Agrovet said in the company’s release. 

“The household penetration of frozen snacks in India is below 6 per cent, indicating ample room for expansion. Hence, as we continue to focus on branded business supported by a cost-efficient live bird production system, our endeavour is to strengthen our portfolio and increase our presence across different channels,” he said.

Godrej Tyson Foods operates in the B2C space through value-added products such as Real Good Chicken and Godrej Yummiez, whereas in the B2B vertical, it supplies processed chicken top brands across hotel chains and quick service restaurants. It has a presence in more than 35 cities and increasing. The company has also started exporting products under the Godrej Yummiez brand to several countries.