US/INDIA: Tyson creates India joint venture
Tyson Foods has bought a majority stake in Indian poultry processor Godrej Foods.
The US-based meat giant announced the deal today (30 June) and hopes to tap into growing demand for poultry in India.
Tyson has taken a 51% stake in Mumbai-based Godrej Foods and plans to set up a venture, Godrej Tyson Foods, which will have two chicken processing sites in India. Annual sales for the venture are expected to be around US$50m.
Godrej currently sells retail fresh chicken under the Real Good Chicken brand name and processed chicken, such as breaded nuggets and patties, along with a line of frozen vegetables, under the Yummiez brand.
Tyson and Godrej plan to expand the capacity of the poultry plants already in operation and Rick Greubel, group vice president and international president for Tyson, said the companies would look to expand the venture nationwide.
"With the help of our partners, we plan to expand the production capacity of the existing operations and build additional processing facilities to better reach consumers in the northern and eastern regions of the country," Greubel said.
Last week, Tyson signalled its focus on emerging markets like India with the decision to sell its packing, feedyard and fertiliser assets of Canada's Lakeside Farm Industries and its subsidiary Lakeside Packers, to XL Foods, a Canadian-owned beef processing business for C$107m (US$106m).
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