Indian conglomerate Godrej Industries has booked falling annual profits – with its food and beverage business suffering from growing losses.

Godrej, which has interests in chemicals, property, finance and personal care products as well as food and drink, posted a consolidated net profit of INR1.11bn (US$23.3m) for the year to 31 March, down from INR1.69bn a year earlier.

Godrej’s food and beverage unit booked an annual pre-tax loss of INR30m against INR6.1m a year ago.

The loss came despite a rise in revenue from the unit. Godrej’s food and drink business posted sales of INR1.77bn, up from INR1.43bn a year earlier.

Godrej’s group net sales rose from INR29.84bn a year ago to INR34.27bn for the whole of fiscal 2008/2009.

“With our well-diversified business model and the huge value potential across our businesses like real estate, agri, and FMCG, we expect to deliver encouraging growth and profitability in the coming years,” Godrej chairman A. B. Godrej said.

Godrej’s food interests include a poultry venture with Tyson Foods and a confectionery-to-edible oil business with US confectionery giant Hershey.