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Godrej Capital Ventures into Agriculture with Dairy Farm Loans

Godrej Capital, the financial services arm of Godrej Industries Group, has announced its entry into the agriculture sector with the launch of dairy farm loans. In a strategic partnership with Creamline Dairy Products Limited and Dvara E-Dairy, Godrej Capital will offer financial assistance to small dairy farm owners across Karnataka and other regions. Creamline Dairy Products Limited, a subsidiary of Godrej Agrovet Limited (GAVL), sells products under the brand name Godrej Jersey.

With India’s dairy product consumption rising steadily, dairy farmers face both opportunities and challenges. Recognizing the need for flexible financing to enhance productivity and drive economic growth, Godrej Capital has teamed up with Dvara E-Dairy to facilitate access for farmers.

Godrej Capital will provide collateral-free loans for the purchase and maintenance of cattle to farmers empanelled with GAVL. The loan offering will include benefits such as a fully digitized process, quick sanction and disbursal, and flexible repayment options of up to two years.

Manish Shah, MD & CEO of Godrej Capital, stated, “We are delighted to extend our support to farmers of our country. The decision to embark on this venture comes as a response to the pressing need to extend financial assistance to the dairy farming community, promote financial inclusion across the value chain, and support ecosystems. The disbursement of the first loan in Krishnagiri district marks just the beginning, as we actively seek to engage the dairy industry in other regions of Tamil Nadu and extend our support to farmers in Andhra Pradesh, Telangana, Karnataka, and Maharashtra. With this, we aim to contribute to the growth and development of the dairy farming sector.”

The dairy sector is a key contributor to India’s agrarian economy, supporting 80 million farmers. Feeding, which accounts for 70% of the total cost of milk, is crucial for healthy dairying and milk productivity. An equal focus on cattle health is essential for sustained milk yields.

Bhupendra Suri, CEO of Godrej Jersey, commented, “Better cattle health ensures better well-being of cattle and also enables farmers to obtain better yields, thereby increasing their profitability. Hence, with access to quality feed being a key for the dairy farmers, this partnership between Godrej Capital and Dvara E-Dairy would enable them to get easy access to finance for their feed as well as other farming needs. Leveraging this platform, our farmers can increase cattle population and strive for higher productivity and better prosperity.”

Ravi K.A., founder, MD, and CEO of Dvara E-Dairy, said, “We are delighted and privileged to partner with the Godrej Industries Group companies. The synergy brings significant value to the stakeholders, enabling thousands of dairy farmers to access affordable financing from Godrej Capital and an innovative platform for cattle loans. The arrangement will bring doorstep access to financial services, empowering dairy farmers to increase milk yield, meet their working capital requirements, and make informed financial decisions.”

Godrej Capital is focusing on ecosystem development and providing financial access to the underserved market. Alongside this initiative, the company aims to capture a significant market share in southern states for MSME lending. Building on its momentum from the previous year, Godrej Capital plans to expand operations by establishing new branches in Karnataka, Andhra Pradesh, and Telangana, demonstrating its dedication to serving the local community and fostering economic growth in the region.

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