US meat industry leader, Tyson Foods, has divested its minority interest in its Indian joint venture with the local conglomerate, Godrej Agrovet.
According to a filing with the Bombay Stock Exchange (BSE), the Mumbai-based company has successfully acquired Tyson’s 49% share in Godrej Tyson Foods, thus becoming its sole owner. The specific financial terms of the transaction remain undisclosed.
Established in 2008, the joint venture is recognized for brands such as Real Good Chicken and Yummiez, as noted on Godrej Agrovet’s website. Notably, Godrej Tyson Foods operates processing plants in Bangalore and Mumbai, along with a dedicated production facility for vegetarian products located in Ladhowal, Ludhiana.
As of this moment, Tyson Foods has not provided any comment regarding this recent sale. Initially, this venture was projected to generate approximately $50 million in annual sales when it was announced.
In 2014, Godrej Tyson Foods significantly enhanced its capacity by 80%, aiming to bolster the expansion of its value-added chicken brands. Recently, the Indian conglomerate disclosed its intention to purchase the 49% stake alongside the announcement of its first-quarter fiscal results for 2025.
Godrej Agrovet reported a 23% surge in consolidated net profit, reaching Rs1.32 billion ($15.7 million) for the quarter, which is an increase from Rs1.07 billion a year earlier. However, total revenue for this period dipped by 6.4% to Rs23.51 billion, falling short of a projected Rs26.21 billion.
Meanwhile, Tyson Foods recently announced a pivotal change in leadership, appointing Curt Calaway as the new CFO. He steps in permanently after serving as the interim finance chief following the suspension of the previous CFO, John R. Tyson, who has faced legal issues in the past two years.
In Tyson Foods’ latest third-quarter results, the company reported operating income of $341 million, a significant recovery from a loss of $350 million the previous year. Adjusted operating income soared to $491 million, marking a 174% year-on-year increase. Sales totaled $13.35 billion, surpassing last year’s $3.14 billion and beating analysts’ estimates of $13.24 billion.
This strong financial performance has led Tyson Foods to adjust its lower end of the adjusted operating income forecast for fiscal 2024 to a range of $1.6 billion to $1.8 billion, up from the previous estimate of $1.4 billion to $1.8 billion.
In the context of current trends within the food and beverage industry, Tyson’s strategic moves appear tailored to adapt to evolving food and drink consumer trends. The company is likely positioning itself for enhanced competitiveness in the broader food and drink business landscape.