Tyson Foods Enters Joint Venture in India

by Editor fleischwirtschaft.com
Monday, July 21, 2008

Tyson Foods, Inc. is taking steps in the effort to expand the company’s international presence. Tyson officials announced they have acquired majority ownership of one of the leading poultry processing businesses in India.

Tyson purchased 51 percent ownership of Godrej Foods, Ltd., based in Mumbai. Godrej Foods is a subsidiary of Godrej Agrovet, Ltd., one of India’s leading agribusinesses. The joint venture between Godrej Agrovet and Tyson will be called Godrej Tyson Foods. Annual sales for the venture are initially expected to be in the range of $50 million and are anticipated to grow as operations are expanded.

The venture includes one chicken processing facility in Mumbai, in western India, and another in Bangalore, in the southern part of the country. The two plants have a combined production capacity of 60,000 birds per day and have approximately 1,000 contract production workers. The Godrej processing operations are supplied by six contracted hatcheries and a network of contracted broiler operations, which produce live birds to the company's specifications.

Tyson and Godrej plan to immediately initiate efforts to expand the capacity of the poultry plants already in operation. Efforts to build new processing plants in other parts of the country will likely begin within the next several years.

According to media reports Tyson has furthermore signed a preliminary agreement to buy 60 percent of Xinchang Group, the fifth largest poultry producer in China.