Godrej Agrovet Announces Rs 70 Crore Investment in Dairy Processing and Oil Palm Support in Andhra Pradesh

Godrej Agrovet Ltd has entered into a non-binding memorandum of understanding (MoU) with the Andhra Pradesh government. The agreement involves an investment of Rs 70 crore to enhance dairy processing capacity and establish farmer support centres. This initiative aims to boost the dairy sector and provide assistance to oil palm farmers through new service hubs.

Representative image

The investment will be channelled through Creamline Dairy Products Ltd, a wholly owned subsidiary operating under the Godrej Jersey brand. The plan includes expanding facilities for dairy processing and value-added products. Additionally, five new Samadhan Centres will be set up to serve as comprehensive service hubs for oil palm farmers.

Focus on Agri-Food Processing Sector

The MoU was signed in the presence of Andhra Pradesh Chief Minister Nara Chandrababu Naidu, Sunil Kataria, Managing Director and CEO of Godrej Agrovet, and Rakesh Swami, Group President of Corporate Affairs at Godrej Industries Group. Naidu emphasised the importance of strengthening the agri-food processing sector for the prosperity of local farmers.

"Strengthening the agri-food processing sector is imperative for farmers of our soil to prosper," said Naidu. "I am confident that this partnership will not only help strengthen our agricultural ecosystem but also create sustainable livelihoods for the community at large while driving economic growth."

Phased Dairy Expansion

The company plans to execute the dairy expansion in three phases, although no specific timeline has been provided. Godrej Agrovet's oil palm business, described as India's largest oil palm processor, collaborates directly with farmers throughout the crop lifecycle.

The new Samadhan Centres will offer oil palm farmers access to knowledge, tools, services, and technical solutions. This initiative aims to empower farmers by providing them with essential resources and support.

Commitment to Andhra Pradesh

"Today's MoU is a testimony of our intent to strengthen our agri-food processing capabilities while continuing to empower farmers," stated Kataria. Swami highlighted Andhra Pradesh's significance for the Godrej Industries Group and reiterated the company's commitment to expanding its presence in consumer, real estate, and finance sectors within the state.

This collaboration between Godrej Agrovet and the Andhra Pradesh government aims to enhance agricultural productivity and support local communities. By investing in dairy processing and farmer support centres, both parties seek to drive economic growth and create sustainable livelihoods for farmers.

With inputs from PTI