Chairman of The Godrej Group Adi Godrej
"We delivered this performance despite the sluggish business environment across many geographies that we are present in," said Adi Godrej, Chairman, Godrej group on June quarter earnings. In Picture: Chairman of The Godrej Group Adi Godrej speaks during a televised debate on "The Indian Spring: Seeking Independence from Corruption" at the World Economic Forum (WEF) India Economic Summit in Mumbai November 13, 2011.Reuters

Industrialist Adi Godrej is planning to go public with the agri-business subsidiary of the Godrej group. Godrej has not yet however given a probable date or valuation. 

Godrej Agrovet Ltd. has been reporting a steady growth in revenues since financial year 2010, a factor that could boost interest in its Initial Public Offerings when the company goes public.

The company— which accounts for 20 percent of total revenues of its parent company, Godrej Industries ltd.— recorded a 14 percent revenue growth in FY16 over the previous fiscal, according to the company's financial statements.

Agrovet had made two acquisitions in 2015 in companies related to its agri-business which covers animal feed. The company bought a majority stake of 51 percent in the agro-chemical company, Astec LifeSciences, and an additional 25 percent stake in dairy retailer, Creamline Diary Products, taking Agrovet's total stake in the company to 51 percent.

When Godrej's Agrovet goes public, it could also benefit Temasek Holdings, a Singapore-state owned investment firm, which acquired a 20 percent stake in the agri-business unit in December 2012.

In July this year, KKR, the US private equity firm, had agreed to invest Rs. 520 crore in the dairy products maker Kwality. This investment was expected to push up the dairy business in India.

"The company will use part of the proceeds to meet capital expenditure for further strengthening milk procurement infrastructure and to increase processing capacity by 9.5 lakh litres per day," Sanjay Dhingra, Kwality chairman told the Economic Times.

Meanwhile, in May 2016, Parag Milk Foods, which produces dairy products under the brand name 'Go', offered IPO to raise Rs. 300 crore from 1.33-1.37 crore shares at a price band of Rs. 220-227.