Tyson Foods has purchased 51% ownership of Godrej Foods, a subsidiary of Godrej Agrovet, an Indian agribusiness company. The joint venture between Godrej Agrovet and Tyson will be called Godrej Tyson Foods
Annual sales for the venture are initially expected to be in the range of $50 million and are anticipated to grow as operations are expanded.
The venture includes one chicken processing facility in Mumbai, in western India, and another in Bangalore, in the southern part of the country. The two plants have a combined production capacity of 60,000 birds per day and have approximately 1,000 contract production workers.
The Godrej processing operations are supplied by six contracted hatcheries and a network of contracted broiler operations, which produce live birds to the company's specifications.
Rick Greubel, group vice president and international president for Tyson Foods, said: “Poultry production and consumption is growing in India and we believe the timing is right for us to bring our expertise and resources to this emerging market.”
Tyson and Godrej plan to immediately initiate efforts to expand the capacity of the poultry plants already in operation. Efforts to build new processing plants in other parts of India will likely begin within the next several years.
Source: Trading Markets