Godrej Agrovet (GAVL), a diversified agribusiness company, plans to invest heavily in Astec Lifesciences, its agrochemical active ingredients subsidiary, in the current financial year, doubling its capital expenditure to over 500 crores. In recent years, the company has been spending between 200 and 250 crores on capital expenditures.
More than 300 crores of the 500 crores Capex planned for the year will be invested in scaling up Astec Lifesciences, where we see significant growth opportunity, said Balram Singh Yadav, Managing Director, GAVL. The remainder will be used to expand marginal capacity in other businesses.
In August 2015, GAVL acquired Astec LifeSciences, a manufacturer of fungicides, insecticides, herbicides, and intermediates for global customers.
GAVL reported an 18.5% increase in net profits to 408.5 crores for FY22, while revenue increased 32.7 percent to 8,306.1 crores.
During FY22, Astec LifeSciences reported a 22% increase in revenue to 676.6 crores, aided by higher export realizations, a favorable product mix, and operational efficiencies. Exports accounted for 57.7% of Astec’s revenue and increased by 44.4% year on year.
