Andhra Pradesh [India]: Godrej Agrovet Limited (GAVL), one of India's largest diversified agribusiness companies, recently signed a Memorandum of Understanding (MoU) with the State Government of Andhra Pradesh as part of Andhra Pradesh Global Investors Summit 2023.
GAVL’s Oil Palm business will make an estimated investment of INR 100 Crores to build a manufacturing facility for Edible Oil Refinery & Solvent Extraction Plant in the state.
GAVL, India's largest Oil Palm processor, is working directly with farmers to ensure that their crop is given a full lifecycle of support. The company has already achieved 45,000 hectares of Oil Palm plantation area in the state of Andhra Pradesh.
To further support the region's agricultural industry, GAVL has announced plans to set up a 400 tonnes per day oil and fats refinery in Seethanagaram, Eluru District. This will be the first downstream value-added product project for GAVL in oil and fats production.
Balram Singh Yadav, managing director, GAVL, 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 Rs 1000 crore investment in the state by the Palm oil, Aqua Feed and Dairy businesses.”
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 country’s fresh fruit bunch volume and oil production. With bulk of GAVL’s oil palm plantation in the state, the facility near to our Crude Palm Oil Mills will help cater captive need originating from oil palm work in the southern states along with 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 nation’s dependence on imports.”
Rakesh Swami, group president corporate affairs, Godrej Industries, said, “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 the business-friendly policies, emerging cities, and aspiring demographic dividend 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.”
India is poised to become a major player in the global palm oil industry, with GAVL having recently launched a new initiative designed to ensure sustainable development. The National Mission on Edible Oil-Oil Palm (NMEO-OP) Initiative, established in August 2021, has set a goal of increasing India’s area of oil palm plantations by 60,000 hectares over the course of five years. To this end, GAVL recently launched Samadhan – a one stop solution centre that provides support and resources for oil palm farmers across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Odisha and North-East India. 50 Samadhan centres are planned for completion by 2027.
