The Godrej Agrovet share was up marginally in the early trade on October 3 as the company announced a plan to set up an integrated palm oil complex in Telangana.
The complex to be set up in Khammam district will have a state-of-the-art crude palm oil mill along with the provision of setting up a refinery.
The company will also set up a nursery with a capacity of up to 7 lakh saplings per year in addition to a seed production and research unit.
At the complex, the company will be setting up the first-ever seed garden in India. This seed garden can provide seeds for the planting of around 90,000 acres of area and help Telangana achieve targets for oil palm plantation.
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The company will invest Rs 300 crore over the next three or four years in setting up the integrated palm oil complex, it has said. Palm oil is used as raw material in a range of industries and India mainly buys it from Indonesia, Malaysia and Thailand.
Through its samadhan centres – a one stop solution for oil palm farmers, the company would provide advisory services on best practices, modern technologies, farm inputs (such as fertilizers, drip irrigation, pesticides, seeds, and harvesting tools) and services under one roof.
“We are thankful to the Government of Telangana for creating an eco-system and giving us an opportunity to contribute to nation’s journey of reducing its dependency on oil palm imports in the coming years," said Balram Singh Yadav, Managing Director, Godrej Agrovet.
The company’s partnership with the State Bank of India would also support oil palm plantation farmers during the gestation period.
In September, the company entered into a strategic partnership agreement with Sime Darby Plantation Berhad (SDP), the largest producer of Certified Sustainable Palm Oil (CSPO) in the world. Malaysia-based SDP would supply high-quality oil palm seeds to Godrej Agrovet's oil palm business units and would also set up a state-of-the-art seed production unit in India at a later date.
At 9.36 am, Godrej Agrovet was quoting at Rs 484.40, up Rs 4.25, or 0.89 percent on the BSE.
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