Godrej takes control over Gold Coin JV
India based $2.6 billion multinational Godrej group is in the process of purchasing the controlling 51% stake of Gold Coin — one of East Asia’s largest animal feed companies — in their Indian aquafeed joint venture. The two groups have partnered for four years.
Nadir Godrej, managing director of Godrej Industries, which controls the Godrej group’s 49% stake in the venture confirmed this to Financial Chronicle, but declined to reveal the amount that Godrej will be paying for the stake purchase.
Gold Coin is one of the largest privately-owned agribusinesses in East Asia, employing 2,400 people in 23 production facilities, across nine countries.
Established in Singapore in 1953, and now headquartered in Kuala Lumpur (Malaysia) Gold Coin is a pioneer in animal nutrition and the manufacturing of scientifically balanced animal feed within Asia.
The company is part of the Zuellig Group, an Asian multinational with interests in healthcare, pharmaceutical distribution and agribusiness, generating a combined annual turnover of approximately $12 billion.
Aquafeed merge
At Godrej the Gold Coin Aquafeed business will be merged with Godrej Agrovet, which is the animal feed branch of Godrej.
Godrej Agrovet is one of India’s largest animal feed companies producing a million tonnes of feed for dairy cattle, poultry and aquaculture.
“We are seeing sales at the JV grow almost 50% year on year, while this year operating profits have grown by 23%,” said a Godrej official familiar with the development.
Major acquisition
The acquisition of Gold Coin’s stake is the second major acquisition by the group in the animal feed business.
In the year 2000, Godrej acquired its largest competitor — Goldmohur Foods and Feeds — a Unilever group company.
Today, the business division has 40 production units across the country and more than 22% market share in the compound feed market, according to Godrej data.
In July 2006, the Gold Coin Group and Godrej Agrovet announced that they signed an agreement to form a joint venture in India, which would consolidate their aqua feed businesses.
Godrej had hoped to use Gold Coin group’s expertise and technical knowledge in feed to consolidate its market share in the Indian aqua feed business.
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