Godrej Agrovet eyes 15% turnover growth in FY'11

MUMBAI: Diversified agri-business company Godrej Agrovet is expecting a 15 per cent growth in turnover, which was Rs 1,600 crore last year, in FY 11.

"I can say that courtesy the good numbers we have seen in the first quarter, we expect a 15 per cent jump in our top -line and 25 per cent in the bottomline...last year we had a turnover of over Rs 1,600 crore," the company's Managing Director, B S Yadav, told reporters here.

The company, which currently sells animal feeds, ready -to-eat foods and processed poultry products, is looking "seriously" at diversifying into newer sectors, he said.

"Dairy, micro-irrigation, seeds and corn seeds are the avenues we are looking at...at this juncture I cannot say whether our entry into the market will be through the greenfield mode or acquisitions."

The company can comfortably raise finance for the proposed diversification through debt or internal accruals, Yadav said. On acquisitions, he said the company is "always open" for proposals in the palm oil and animal feed sectors.

For organic growth, the firm has earmarked Rs 50 crore as capex for this fiscal, Yadav said, adding a majority of the amount will go towards raising capacities of its animal feeds business by erecting three plants in Punjab and Uttar Pradesh.

Godrej Agrovet is also investing in its palm oil vertical as part of its capex for FY'11. It currently has 40,000 hectares under cultivation, he added.