Godrej Agrovet Limited shares surged 4% in early trade on Wednesday, March 12, 2025, following the company's decision to acquire the remaining 48.06% stake in Hyderabad-based Creamline Dairy Products Limited. The acquisition, valued at ₹930 crores, will make Creamline a wholly owned subsidiary of Godrej Agrovet.
The Mumbai-based company stated in an exchange filing that the acquisition would be executed through a cash transaction. The Board of Directors has approved the deal, and the company has signed a share purchase agreement with the original promoters of Creamline Dairy Products to acquire a 47.38% equity stake.
Godrej Agrovet expands dairy business with strategic acquisition
Godrej Agrovet already holds a 51.94% stake in Creamline Dairy Products. The newly acquired stake will give the company full ownership of the dairy business. Creamline Dairy Products manufactures and sells milk and dairy products under the 'Godrej Jersey' brand.
The acquisition aligns with Godrej Agrovet's long-term growth strategy in the dairy sector. The company's management has stated that the transaction is expected to be completed by the end of September 2025.
Company performance and financials
The acquisition is expected to strengthen Godrej Agrovet's revenue streams and enhance its presence in the dairy market.
Godrej Agrovet operates across multiple business verticals, including animal feed, crop protection, oil palm, dairy and poultry, and processed foods. The company aims to improve farmer productivity through its diverse agricultural and food-related businesses.
For the quarter that ended in December 2024 (Q3 FY25), Godrej Agrovet reported a 32.4% year-on-year increase in net profit to ₹109.9 crores, up from ₹83 crores in the same quarter last year. Revenue rose by 4.5% to ₹2,449.6 crores compared to ₹2,345.2 crores in Q3 FY24.
Godrej Agrovet share price trend and market performance
Godrej Agrovet shares have gained 52% over the past 12 months. The company's recent expansion efforts and strong quarterly results have contributed to positive investor sentiment.
Market analysts suggest that the acquisition of Creamline Dairy Products could further strengthen Godrej Agrovet's position in the dairy industry. Investors looking to invest in stocks must evaluate the company's long-term growth potential and market position.
Strategic leadership changes
The Board of Directors has also approved the appointment of Y V Sathish as "Head—Manufacturing & Supply Chain Excellence", effective from March 24, 2025. The appointment aligns with the company's focus on operational efficiency and strategic growth.
Moreover, the full acquisition of Creamline Dairy Products is expected to impact Godrej Agrovet's financials in the coming quarters.
At 11:15 AM on March 12, 2025, the shares of Godrej Agrovet were trading at ₹752.50 per share.
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