September 22, 2009
Godrej Agrovet to expand animal feed production
Indian integrator Godrej Agrovet plans to invest US$12-US13 million into its Bangladesh joint venture ACI Godrej Agrovet to expand feed production capacity.
The company is also targeting over 20-percent growth in its poultry feed business in the next fiscal.
ACI Godrej Agrovet is a 50:50 joint venture between Godrej Agrovet and ACI of Bangladesh. It produces poultry, fish and cattle feed, and also owns hatchery and breeding farm operations.
The company plans to expand its animal feeds capacity from the present 120,000 tonnes to 250,000 tonnes per year in six months time. Managing director B.S. Yadav also plans to increase chick production from one million per month to two million in 12-18 months time.
Funds for fuelling the expansion will be raised through debt, equity, if needed, and internal accruals, he said.
The Godrej group company is a leading animal feed producer in India, but it will now invest heavily in this segment and will continue to do so in the coming years. The company aims to increase US$40 million in its animal feed business from about US$199 million in 2009 to US$238 million in 2010.