GIL exits from Godrej Hershey by divesting 43% stake

Godrej Industries Ltd (GIL) said that it will exit from the joint venture Godrej Hershey Ltd by divesting its 43% stake to the Hershey Company for an undisclosed consideration.

The transaction is expected to close by the end of second quarter of 2012-13, GIL said in a release.

Post the transaction, the company will become a wholly-owned subsidiary of Hershey Company, the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery.

Commenting on the transaction, Godrej Group Chairman, Adi Godrej said, "Over the last few years, we have been following a disciplined approach to doubling down on our core businesses to drive sustained and profitable growth. Our decision to divest our stake in the Godrej Hershey joint venture is in line with this focused portfolio strategy."

"We have enjoyed a productive relationship with the Hershey Company. We believe that the Godrej Hershey JV has provided a strong platform for Hershey to establish a presence in India and will enable them to evolve into a leader in the food and beverage space in India.

For the fiscal year ending March 31, 2012, Godrej Hershey Ltd had net sales of Rs 386 crore and losses of Rs 74 crore.