Godrej Agrovet (GAVL), one of India’s leading diversified agribusiness companies, today announced that it has signed a memorandum of understanding (MoU) with the state government of Andhra Pradesh (AP) on the sidelines of the Andhra Pradesh Global Investors Summit (APGIS) 2023. As a part of the MoU, GAVL’s oil palm business will be making an estimated investment of INR 100 crores to set up a manufacturing facility for Edible Oil Refinery & Solvent Extraction Plant.
“GAVL is the largest oil palm processor in India and works directly with the farmers for the entire lifecycle of their crop. With the company already having 45,000 hectares of oil palm plantation area in AP, the proposed new plant will have a projected refining capacity of 400 tonnes per day and will be set up in Seethanagaram, Eluru District in AP. This is GAVL’s first downstream project for value-added products in oil and fats,” the company said.
Balram Singh Yadav, Managing Director, Godrej Agrovet said, “The MoU is in line with Godrej Agrovet’s long-term strategy to be the catalyst in India’s oil mission through sustainable growth of oil palm production. This new investment is built up on the INR 1000 crores investment in the state by the Oil Palm, Aqua Feed and Dairy businesses.”
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Speaking on the signing of the MoU, Sougata Niyogi, CEO – Oil Palm, GAVL said, “Having pioneered innovation in developing oil palm sector under irrigated conditions, the state of AP continues to lead the country’s fresh fruit bunch volume and oil production. With the bulk of GAVL’s oil palm plantation in the state, the facility near our crude palm oil mills will help cater to captive needs originating from oil palm work in the southern states along with a demand from other crude palm oil players in the region. This in sync with National Mission on Edible Oil – Oil Palm (NMEO-OP) will aid reduce the nation’s dependence on imports.”
“AP has a unique geographic and climatic advantage which will propel businesses to partake in the growth story of the state. As a group, we are keen to explore business-friendly policies, emerging cities, and aspiring demographic dividends for the growth of our consumer products, real estate, and finance businesses. With impeccable support from the state government and our strong legacy of people and planet first business ethics, we are committed to expanding the business footprint in the state,” said, Rakesh Swami, Group President – Corporate Affairs, Godrej Industries.
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India is a net importer of palm oil. The lack of domestic production not only puts pressure on the industry and the allied sectors but also on India’s economy. Hence since the launch of the National Mission on Edible Oil – Oil Palm in August 2021, GAVL had established a goal to add 60,000 hectares of additional oil palm plantations over the course of the next five years to support the long-term sustainable development of oil palm in India. To achieve this goal, the company recently announced the launch of Samadhan, a one-stop solution centre that would provide a comprehensive package of knowledge, tools, services and solutions to oil palm farmers. With the company’s oil palm business currently operating in Andhra Pradesh, Telangana, Tamil Nadu, Goa, Odisha and North-East, the company plans to establish 50 Samadhan centres by 2027.
Others present on the occasion of the signing of the MoU were the Minister for Agriculture, Government of Andhra Pradesh, Kakani Goverdhan Reddy; Secretary – Food Processing, AP, Chiranjiv Choudhary and L. Sridhar Reddy – CEO, AP Food Processing Society.