Godrej Agrovet Ltd. announced on Tuesday it will acquire the remaining 48.06% stake in Creamline Dairy Products Ltd. at Rs 930 crore.
The move will result in the owner of the Godrej Jersey brand, one of the wholly owned subsidiary of South India’s leading private dairy farmers, according to the company’s exchange declaration.
The decision follows approval by the board of directors of Godrej Group Company on Tuesday. Godrej Agrovet said the aim of the acquisition was to consolidate the company’s position in Creamline Dairy products.
The Company will implement the acquisition through a share purchase agreement and pay in full cash for the remaining shares. Following the acquisition, Godrej Agrovet’s shares in Creamline Dairy Products will increase from 58.81 million shares to 1.13 crore.
The acquisition of the Hyderabad-based milk procurement and processing company is expected to close before September 30, 2025, with disclosure added.
Creamline Dairy Products is an affiliated party to the company because Godrej Agrovet is its promoter and is interested in the entities that are being acquired. However, he added that the acquisition will take place on an arm length basis.
The transaction was based on assessment reports obtained for purposes and therefore, based on arm length, with filing added.
For the fiscal year ended March 31, 2024, Creamline Dairy Products’ sales were Rs 1,540. In the third quarter of the current fiscal year, Godrej Agrovet recorded net income of Rs 111.5 crore, up 21% from the profit of Rs 91.8 crore reported in the same period last year.
The company’s revenues rose 4.5% for the quarter to Rs 2,449.6. In comparison, the company had collected revenues of Rs 2,345.2 in a similar period last year.
Godrej Agrovet stock fell 1.35% at Rs 735.65 on BSE compared to a 0.02% decline in benchmark Sensex.
(Includes PTI input)
