Godrej Agrovet to Invest ₹300 Cr in Integrated Palm Oil Complex in Telangana
Godrej Agrovet, a prominent player in the agribusiness sector, is set to establish a groundbreaking integrated palm oil complex in Telangana. The project, located in Khammam district, is expected to revolutionize the palm oil industry in India. In a strategic move, the company aims to reduce the country's dependency on palm oil imports and enhance domestic cultivation. Let's deep dive into the key aspects of this significant development.
Key Features of the Integrated Palm Oil Complex
1. State-of-the-Art Palm Oil Mill and Refinery: The complex will house a cutting-edge crude palm oil mill, along with plans for a refinery. This infrastructure will play a pivotal role in processing palm oil efficiently.
2. Nursery and Seed Production: Godrej Agrovet is committed to sustainable growth. To achieve this, they will establish a nursery capable of producing up to 7 lakh saplings annually. Additionally, a seed production and research unit will further bolster palm oil cultivation.
3. First-Ever Seed Garden in India: A groundbreaking initiative, the company will create the first seed garden in India. This garden will be capable of supplying seeds for planting approximately 90,000 acres, contributing significantly to Telangana's oil palm plantation targets.
4. Investment Commitment: Godrej Agrovet plans to invest ₹300 crore over the next three to four years in the integrated palm oil complex. This shows their dedication to transforming the palm oil industry in India.
5. Expansion of Palm Oil Cultivation: The company's vision extends to expanding the area of palm oil cultivation in India. They aim to increase it from the current 65,000 hectares to an impressive 120,000 hectares by 2027.
Godrej Agrovet is not only investing in infrastructure but also in supporting farmers. Their samadhan centers will offer comprehensive advisory services, including best practices, modern technologies, and essential farm inputs, all under one roof. This approach aims to empower oil palm farmers and boost productivity.
Partnerships for Sustainability
Balram Singh Yadav, Managing Director of Godrej Agrovet, expressed gratitude to the Government of Telangana for creating an ecosystem that allows them to contribute to reducing oil palm import dependency.
Also, the company has forged strategic partnerships to ensure the success of its venture. They have joined forces with the State Bank of India to support palm oil plantation farmers during the gestation period.
Additionally, Godrej Agrovet's partnership with Sime Darby Plantation Berhad, the largest producer of Certified Sustainable Palm Oil (CSPO) globally, ensures a high-quality supply of oil palm seeds. SDP will supply high-quality oil palm seeds to Godrej Agrovet and establish a state-of-the-art seed production unit in India.
In the quarter ending June 2023, Godrej Agrovet reported a consolidated net profit of ₹107.08 crore, marking 22% increase compared to the same period in 2022-23. Revenue from operations remained stable at ₹2,499.31 crore. Consolidated EBITDA also showed 22% growth on a year-on-year basis, reaching ₹206.8 crore in Q1 FY24.
In the last month, Godrej Agrovet's stock dipped slightly by 0.88%. However, stock is up 13.92% over the past six months, but, in the last year, it declined by 6.30%.
Godrej Agrovet's big project in Telangana is a major move towards making India more self-reliant in palm oil production. Their focus on sustainability, partnerships, and helping farmers shows they're serious about changing the palm oil industry here. This isn't just about business it's about reducing India's reliance on palm oil imports.
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