26/02/2008 (Commodity Online), Mumbai - Godrej Industries has formed a JV with IJM Plantations of Malaysia to further improve their prospects in oil palm business.

One of the largest plantation firms in the world, IJM had signed a memorandum of understanding for the same with Godrej Agrovet Ltd (GAVL) a year ago.

The JV will help Godrej in gaining technical know-how on oil palms and also get high quality planting material since Malaysia does not allow exporting of planting material unless it is through a joint venture.

IJM, a listed company in Malaysia, has a 51 per cent stake in the new company and Godrej owns the remaining 49 per cent.

This joint venture is only for plantation areas in Karnataka and Goa and will involve procurement of palm-oil planting materials, raising nurseries, supply of seedlings and provision of agronomic assistance to farmers in the country.

GAVL, which is also in the business of animal feeds, agricultural inputs, poultry, retailing of fresh farm produce in urban areas and rural retailing of a wide range of products, has received land from the government for contract farming to promote oil palm plantations.

GAVL has plantations in other states such as Orissa, Andhra Pradesh and has recently entered parts of Gujarat and Mizoram, too.