Godrej to divest all 43% stake in JV with chocolate maker Hershey

Godrej Industries will exit its joint venture with Hershey Co after the US chocolate maker agreed to buy out the 49 per cent equity it does not own, thereby taking 100 per cent control of the business in one the world's biggest chocolate markets.

With this, the Godrej Group will be entirely exiting the foods JV Godrej Hershey Limited, which now has local brands such as Jumpin', Nutrine, Mahalacto and Sofit.

Godrej Industries Limited (GIL) on Friday said it has entered into a share purchase agreement to divest its 43 per cent stake in Godrej Hershey Limited to Hershey Company for an undisclosed consideration.

The transaction is expected to close by the end of the second quarter of the current financial year ending September 2012, the company said.

Following the transaction, the company will become a wholly-owned subsidiary of Hershey.

''Over the last few years, we have been following a disciplined approach to doubling down on our core businesses to drive sustained and profitable growth. We have been making clear choices to focus on areas where we have a competitive advantage and that provide the best growth opportunities for us.