Godrej Industries Ltd has finally decided to divest its 43 per cent stake in the joint venture company Godrej Hershey Ltd to the Hershey Company for an undisclosed amount. The transaction is expected to close by the end of the second quarter of this fiscal. Post-transaction, the company will become a wholly-owned subsidiary of the Hershey Company.
Godrej Hershey was formed in 2007 and expected to launch Hershey’s chocolate portfolio in the country. A. Mahendran, Director on the board of Godrej Hershey, will also sell his six per cent stake in the joint venture company. With this, the Godrej Group would exit the foods business and let go of brands such as Jumpin, Sofit and the confectionary portfolio of Nutrine.
In a statement, Adi Godrej, Chairman of the Godrej Group, said, “We have enjoyed a productive relationship with the Hershey Company. We believe that the Godrej Hershey JV has provided a strong platform for Hershey to establish a presence in India and will enable them to evolve into a leader in the food and beverage space in India.’’