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United News of India
12 hours ago
- Business
- United News of India
Mizoram's Kolasib district emerging as key exporter of oil palm
Aizawl, June 19 (UNI) Kolasib district is emerging as Mizoram's leading oil palm exporter, with local farmers earning over Rs 7 crore from the sale of fresh fruit bunches (FFBs) last year alone. According to Godrej Agrovet Ltd, which manages the only oil palm processing mill in Northeast India located at Bukvannei, Kolasib, the company purchased 5,335 metric tonnes of FFBs in 2024. The figure is expected to rise to around Rs 9 crore in 2025, signaling a promising future for oil palm growers in the region. The development was highlighted during a review meeting chaired by Deputy Commissioner Robert C Lalhmangaiha at the DC's Conference Hall in Kolasib. The meeting brought together officials, industry partners and farmer representatives to assess the progress and challenges in oil palm cultivation. DC Lalhmangaiha said oil palm is now a 'priority crop' under the central government policy, receiving attention from top officials in Delhi. 'The visit of central authorities to Kolasib district reflects the importance given to oil palm cultivation and to the farmers themselves,' he said, stressing the crop's potential to transform rural livelihoods. Oil palm farming was introduced in Mizoram in 2005 under a state partnership with Godrej Agrovet Ltd, targeting Kolasib and Mamit districts. As of now, Mizoram has around 26,680 hectares under oil palm cultivation, of which 6,965 hectares are in Kolasib alone, involving more than 2,100 farmers across 29 villages. Notably, Mizoram accounts for 78% of Northeast India's oil palm acreage, positioning it as a vital player in the Centre's National Mission on Edible Oils–Oil Palm (NMEO–OP). Under the scheme, the government released Rs 2.2 crore in viability gap payments for 2022–23 and Rs 76 lakh for 2023–24 to support Kolasib and Mamit farmers. At the Kolasib meeting, Lalruatkima, Senior Development Officer of Godrej Agrovet Ltd, announced plans to set up an oil palm refinery within the state this year. 'Once the refinery and packaging unit come up, Mizoram-grown oil palm will not only be exported—it will also be processed and consumed locally,' he said. He added that a 'one-stop solution' is being developed to address farmers' input and advisory needs more effectively. Despite the progress, challenges remain. Nearly half the plantations in Kolasib reportedly lack road access, which affects transportation and profit margins. Water scarcity and environmental concerns—such as soil degradation and loss of traditional farming systems—have also been cited by researchers and NGOs. The meeting acknowledged these issues and called for sustainable development practices. Officials present included representatives of the District Oil Palm Zonal Committee, the District Oil Palm Farmers' Association, District Agriculture Officer Joseph Lalnuntluanga, and executives from Godrej Agrovet Ltd. UNI ZS RN
Business Upturn
02-05-2025
- Business
- Business Upturn
Why are Godrej Agrovet shares falling 10% today? Know More
By Aditya Bhagchandani Published on May 2, 2025, 10:06 IST Shares of Godrej Agrovet Ltd plunged over 9% to ₹700.65 in Thursday's session, reacting sharply to its Q4 FY25 results. The stock emerged as the top loser on the Nifty 500 index, and is now down nearly 20% from its 52-week high of ₹877, touched in July last year. The steep fall was triggered by muted financial performance for the March quarter. Revenue, EBITDA, and margins remained flat year-on-year, falling short of investor expectations despite a 24% rise in overall profitability. This growth was largely driven by gains in the domestic crop protection business, vegetable oil division, and improved margins in animal feed. However, the company's subsidiary Astec Lifesciences reported another challenging quarter due to demand-supply imbalances, volume headwinds, and price pressures in both enterprise and contract manufacturing. In the animal feed segment, margins were flat, while the dairy division saw margin erosion due to higher procurement costs. Additionally, Godrej Foods' profitability took a hit from lower live bird prices and weaker volume in that category. Despite the poor show, 4 out of 6 analysts tracking the stock still maintain a 'buy' rating, indicating some long-term optimism. However, one analyst each has a 'hold' and a 'sell' recommendation, reflecting cautious near-term sentiment. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Yahoo
04-02-2025
- Business
- Yahoo
Godrej Agrovet Ltd (NSE:GODREJAGRO) Q3 2025 Earnings Call Highlights: Strong Profit Growth Amid ...
Release Date: February 03, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Godrej Agrovet Ltd (NSE:GODREJAGRO) reported strong profit growth in Q3 FY25, driven by robust performance in the vegetable oil, animal feed, and poultry businesses. The animal feed segment saw a significant improvement in margins, increasing from 4% in Q3 FY24 to 6% in Q3 FY25, due to favorable commodity positions. The palm oil segment delivered strong results with a 45% year-on-year increase in segment revenue, driven by higher crude palm oil prices and improved oil extraction ratios. Aztec Life Sciences reduced its EBITDA losses significantly, showing progress in the CDMO business with higher volumes. The dairy segment showed steady performance, with value-added products reaching 34% of total sales, indicating a positive trend in product mix. The standalone crop protection business faced challenges with lower sales volumes in the in-licensed category due to localized weather events and subdued crop prices. Godrej Agrovet Ltd's joint venture in Bangladesh, ACI Godrej, recorded a 13% decline in revenues year-on-year due to economic challenges and political instability in Bangladesh. The poultry business experienced a marginal year-on-year revenue decline due to a strategic reduction in live business volume. Aztec Life Sciences faced a challenging year with flat growth expected in the CDMO segment for FY25, contrary to earlier growth expectations. The dairy segment faced a drop in EBITDA in Q3 FY25 due to a sudden increase in milk procurement prices, which were not immediately passed on to consumers. Warning! GuruFocus has detected 3 Warning Sign with NSE:GODREJAGRO. Q: Can you provide an update on the CDMO revenue expectations for Aztec Life Sciences for the remainder of this year and fiscal '26? A: (COO, Aztec Life Sciences) This year, we expect a growth of 30-40% year-on-year, although it has been less due to price corrections and market conditions. For fiscal '26, we anticipate a return to normal volume projections, with a year-on-year growth of 40%. Q: How sustainable is the EBIT per ton expansion in the animal feed segment, and what should we expect for fiscal '26? A: (CFO) The EBIT per ton has been about ?1,935 this quarter, aided by benign raw material conditions and R&D initiatives. We expect to maintain an EBIT of over ?2,100 in Q4 and sustain between ?1,800 to ?2,000 per ton in fiscal '26. Q: What challenges have impacted the standalone crop protection business, and what is the outlook? A: (CFO) The crop protection business faced challenges due to adverse weather and subdued crop prices, affecting sales volumes. However, we expect a significant improvement in Q4 over Q3 in both top line and bottom line. Q: Can you elaborate on the performance and sustainability of the Palm Oil Division's margins? A: (CFO) The Palm Oil Division saw strong margins due to favorable government policies and international price increases. However, only 20% of the price increase benefits us, with 80% going to farmers. The sustainability depends on external factors like government policies and international market conditions. Q: What is the current status and future outlook for the dairy segment, particularly regarding milk procurement prices and margins? A: (CFO) The dairy segment saw a drop in EBITDA in Q3 due to increased milk procurement prices, which were not immediately passed on to consumers. However, with recent price adjustments and the upcoming season, we expect Q4 to perform better. Direct farmer procurement is increasing, which should help reduce costs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
