Godrej Agrovet Limited (GAVL), a leading diversified agri-food business in India, has entered into a significant agreement with the Andhra Pradesh government, marking a substantial investment in the state's agricultural sector.

Investment Details

Godrej Agrovet has signed a non-binding Memorandum of Understanding (MoU) with the Andhra Pradesh government, committing to an investment of ₹70.00 crore. This strategic move aims to bolster the company's presence in the state and contribute to the local agricultural economy.

Key Aspects of the Agreement

Dairy Processing Expansion

A significant portion of the investment will be directed towards expanding the dairy processing and value-added product capacities of Creamline Dairy Products Limited, a wholly-owned subsidiary of Godrej Agrovet that operates under the brand name Godrej Jersey.

Oil Palm Farmer Support

The company plans to establish five new Samadhan Centers, which will serve as comprehensive solution hubs for oil palm farmers, providing knowledge, tools, services, and solutions throughout the crop lifecycle.

Phased Implementation

The dairy processing capacity expansion is set to be executed in three phases, indicating a structured and long-term approach to growth in the region.

Official Statements

Sunil Kataria, CEO & MD of Godrej Agrovet, expressed gratitude towards the Andhra Pradesh government for fostering a business-friendly ecosystem. He stated, "Today's MoU is a testimony of our intent to strengthen our agri-food processing capabilities while continuing to empower farmers. With a strong legacy of innovation in food processing, our mission remains to advance India's nutrition landscape and contribute to the growth of agri-economy."

Implications and Outlook

This investment agreement is expected to have several positive outcomes:

• Strengthening of the agri-food processing sector in Andhra Pradesh
• Creation of sustainable livelihoods for local communities
• Enhancement of support systems for oil palm farmers
• Potential boost to the state's economic growth through increased agricultural productivity

The partnership between Godrej Agrovet and the Andhra Pradesh government represents a significant step towards modernizing and expanding agricultural infrastructure in the state, potentially setting a precedent for similar investments in the sector.

About Godrej Agrovet Limited

Godrej Agrovet is a diversified, research-focused food and agri-business conglomerate. The company holds leading market positions in various segments including:

• Animal Feed
• Crop Protection
• Oil Palm
• Dairy
• Poultry and Processed Foods

With a pan-India presence and annual sales exceeding a million tons of high-quality animal feed, Godrej Agrovet continues to play a crucial role in improving the productivity of Indian farmers through innovative products and services.

Godrej Agrovet Limited , a diversified agribusiness company, has announced its financial results for the second quarter of fiscal year 2026, showcasing a mixed performance across its various business segments.

Financial Highlights

*Excluding non-recurring items

Segment Performance

Animal Feed

• Strong 18% volume growth in cattle feed
• Flat revenues due to lower commodity prices
• Underlying margins improved by 70 basis points

Vegetable Oil

• 41% revenue growth
• Margins expanded to 22.40%
• Driven by higher crude palm oil realizations and improved oil extraction ratio of 19%

Crop Protection (Standalone)

• 30% revenue decline
• 62% drop in segment results
• Margins compressed to 23.30% from 43.10%
• Challenges due to excessive rainfall and lower acreages

Astec Life Sciences

• 25% revenue decline
• Cautious contract manufacturing demand
• Enterprise category grew 15%
• EBITDA improved

Creamline Dairy

• Revenue and EBITDA remained broadly flat
• Value-added products grew 10%
• Value-added products' salience rose to 36%

Godrej Foods Limited

• 7% overall revenue decline
• 28% EBITDA growth driven by branded products
• Branded salience increased to 86%

Godrej Agrovet's performance in Q2 FY26 reflects the company's resilience in a challenging environment. While the Animal Feed and Vegetable Oil segments showed strong growth, the Crop Protection segment faced significant headwinds. The company's diversified portfolio helped in maintaining overall growth, with consolidated revenues increasing by 5% year-on-year.

The Animal Feed segment's volume growth, particularly in cattle feed, demonstrates the company's strong market position despite flat revenues due to lower commodity prices. The Vegetable Oil segment's impressive performance, with a 41% revenue growth and expanded margins, highlights the benefits of higher crude palm oil realizations and operational efficiencies.

However, the standalone Crop Protection segment faced challenges due to adverse weather conditions and reduced acreages, resulting in a substantial decline in both revenue and segment results. This underscores the impact of external factors on agribusiness operations.

Astec Life Sciences, while experiencing a revenue decline, showed improvement in EBITDA and growth in its enterprise category. Creamline Dairy maintained its performance, with a focus on value-added products showing positive results. Godrej Foods Limited's strategy of focusing on branded products appears to be paying off, with significant EBITDA growth despite an overall revenue decline.

As Godrej Agrovet navigates through varying market conditions across its diverse business segments, the company's ability to leverage its strengths in high-performing areas while managing challenges in others will be crucial for sustained growth in the coming quarters.