Godrej Agrovet Limited (GAVL) has announced its decision to acquire the remaining 48.06% equity stake in its subsidiary, Creamline Dairy Products Limited (CDPL), for INR930 crore. The acquisition will make CDPL a wholly owned subsidiary of GAVL, further consolidating its position in the dairy sector.
About Creamline Dairy Products Limited (CDPL)
CDPL, incorporated on October 31, 1986, is one of the leading private dairy companies in southern India. The company specializes in milk procurement, processing, and manufacturing of milk and dairy products, which are sold under the well-established ‘Godrej Jersey’ brand. The company operates across India, with a strong presence in the southern states.
Financial Performance:
- FY 2023-24: INR15,405.01 crore
- FY 2022-23: INR14,715.80 crore
- FY 2021-22: INR11,535.02 crore
Deal Structure and Financials
- Pre-acquisition holding: 51.94% (58,81,508 equity shares)
- Post-acquisition holding: 100% (1,13,24,700 equity shares)
- Total cost of acquisition: INR930 crore
- Form of consideration: Cash transaction
- Estimated completion: On or before September 30, 2025
Strategic Rationale Behind the Acquisition
Godrej Agrovet aims to fully integrate CDPL into its portfolio, leveraging its expertise in dairy production and distribution. The acquisition aligns with the company’s long-term growth strategy, strengthening its footprint in the Indian dairy industry.
Commenting on the acquisition, a spokesperson from Godrej Agrovet said, “CDPL has been an integral part of our business, and this acquisition allows us to streamline operations and drive further growth in the dairy segment. With strong financial performance and a trusted brand like Godrej Jersey, we see immense potential in expanding our dairy offerings.”
Regulatory and Transactional Aspects
- Related Party Transaction: The acquisition is categorized as a related party transaction since CDPL is a material subsidiary of Godrej Agrovet. However, it has been conducted on an arm’s length basis, following a valuation report.
- Regulatory Approvals: No government or regulatory approvals are required for the transaction.
Future Outlook
With full ownership of CDPL, Godrej Agrovet plans to enhance its dairy business, strengthen supply chain efficiencies, and explore new product innovations in the growing dairy market. The move is expected to reinforce Godrej Jersey’s market leadership and unlock further synergies within the group’s broader FMCG portfolio.
The acquisition is anticipated to close by September 30, 2025, subject to customary conditions.