Godrej Industries is likely to offload stake in its JV company Godrej Hershey to the Hershey Company for an undisclosed amount.
The company holds 43 per cent stake in the JV company. The transaction is expected to be completed by the end of the second quarter of FY12-13. Post-transaction, the company will become a whollyowned subsidiary of the Hershey Company. Formed in 2007, Godrej Hershey was expected to launch Hershey’s chocolate portfolio in the country. A. Mahendran, Director on the board of Godrej Hershey, will also divest his six per cent stake in the JV company.
With the stake sale, the Godrej Group will make an exit from the foods business and let go of brands such as Jumpin, Sofit and the confectionary portfolio of Nutrine.