Hindustan Lever is to sell 74% of its equity in animal feed company Gold Mohur to Godrej Agrovet, a respected Indian business group.
Under Indian valuation guidelines, brands are valued roughly at their one-year’s turnover value, though brand is irrelevant in this deal. Current turnover of Gold Mohur amounts to US$65m, and US$75m at Godrej Agrovet.
The combined company will now have a 25% share of India’s animal feeds business. Godrej Agrovet is strong in cattle feed, Gold Mohur in poultry feed.
By Navroz Havewala, just-food.com correspondent