Tyson plans joint venture with India-based Godrej

Springdale-based Tyson announced Monday that it has bought 51 percent ownership of Godrej Foods, Ltd., based in Mumbai, India. The joint venture will be called Godrej Tyson Foods and is expected to have annual sales starting at about $50 million.

The venture includes chicken processing plants in Mumbai and Bangalore. The plants have a combined production capacity of 60,000 birds per day and have about 1,000 workers.

Godrej Foods, a subsidiary of agribusiness company Godrej Agrovet Ltd., now sells fresh chicken under the "Real Good Chicken" brand name and processed chicken, such as breaded chicken nuggets and patties. Godrej also sells frozen vegetables under the "Yummiez" brand.

The financial terms of the deal were not disclosed.

"Poultry production and consumption is growing in India and we believe the timing is right for us to bring our expertise and resources to this emerging market," said Rick Greubel, group vice president and international president for Tyson Foods. "India has a population of more than 1.1 billion people, and while per capita chicken consumption there is currently less than five pounds a year, its annual growth rate of more than 10 percent is among the highest in the world."

Tyson and Godrej officials say they plan to build new processing plants in other parts of India within the next several years.

"We're excited about partnering with Tyson because of its international reputation for quality and innovation," said Godrej Agrovet CEO Balram Yadav. "We believe this joint venture will boost our continued efforts to modernize the way high quality poultry products are developed, produced and distributed in our country."