MUMBAI, India, June 30, 2008 (PRIME NEWSWIRE) -- The leadership of Tyson Foods, Inc. (NYSE:TSN) is taking another step in the effort to expand the company's international presence. Tyson officials today announced they have acquired majority ownership of one of the leading poultry processing businesses in India.
Tyson today purchased 51% ownership of Godrej Foods, Ltd., based in Mumbai. Godrej Foods is a subsidiary of Godrej Agrovet, Ltd., one of India's leading agribusinesses. The joint venture between Godrej Agrovet and Tyson will be called Godrej Tyson Foods. Annual sales for the venture are initially expected to be in the range of $50 million and are anticipated to grow as operations are expanded.
The venture includes one chicken processing facility in Mumbai, in western India, and another in Bangalore, in the southern part of the country. The two plants have a combined production capacity of 60,000 birds per day and have approximately 1,000 contract production workers. The Godrej processing operations are supplied by six contracted hatcheries and a network of contracted broiler operations, which produce live birds to the company's specifications.
The well-trained, professional sales organization of Godrej currently sells retail fresh chicken under the "Real Good Chicken" brand name and processed chicken, such as breaded nuggets and patties, along with a line of frozen vegetables, under the "Yummiez" brand. The company, which is also a major supplier to the foodservice market, has an extensive logistics and distribution network designed to effectively serve its customer base in western, southern and northern India.
"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% is among the highest in the world."
Greubel also noted, "With the help of our partners, we plan to expand the production capacity of the existing operations and build additional processing facilities to better reach consumers in the northern and eastern regions of the country."
Tyson and Godrej plan to immediately initiate efforts to expand the capacity of the poultry plants already in operation. Efforts to build new processing plants in other parts of the country will likely begin within the next several years.
"We're excited about partnering with Tyson because of its international reputation for quality and innovation," said Balram Yadav, chief executive officer of Godrej Agrovet, Ltd. "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."
Forward-Looking Statement
Certain information contained in the press release may constitute forward-looking statements, such as statements relating to expected sales and growth. These forward-looking statements are subject to a number of factors and uncertainties which could cause our actual results and experiences to differ materially from the anticipated results and expectations, expressed in such forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.
About Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE:TSN), founded in 1935 with headquarters in Springdale, Arkansas, is the world's largest processor and marketer of chicken, beef, and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is the recognized market leader in the retail and foodservice markets it serves. Tyson provides products and service to customers throughout the United States and more than 80 countries. The company has approximately 104,000 Team Members employed at more than 300 facilities and offices in the United States and around the world. Through its Core Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate with integrity and trust and is committed to creating value for its shareholders, customers and Team Members. The company also strives to be faith-friendly, provide a safe work environment and serve as stewards of the animals, land and environment entrusted to it.
The Tyson Foods, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3224
About Godrej Agrovet, Ltd.
Godrej Agrovet, Ltd., a part of the Godrej Group, is a market leader in animal feeds, poultry, innovative agri- products & oil palm development in India. Godrej Agrovet set up its Integrated Poultry Business (IPB) in 1999 to modernize India's poultry processing industry and provide Indian consumers with world class products.