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*JVL Agro Industries Ltd.* is negotiating with a Singapore based plantation
company for a majority stake.

The size and the exact stake are not known. The deal is expected to be
finalized in 3 months.

The target has a 20,000 acre palm oil plantation in Indonesia, allotted by
the Indonesian Government.


  Transaction Note

JVL is principally engaged in the manufacture of vanaspati and refined
edible oil. JVL Agro markets vanaspati ghee, refined soyabean oil and
mustard oil under the ‘*Jhoola*’ brand.

The company imports crude edible oil, while on the other hand, it exports
de-oiled cakes to markets in South-East Asia.

JVL Agro is in the process of setting up another Rs.125 crore plant at the
Haldia port in West Bengal for which the land acquisition is done. Debt for
the project has been syndicated by *State Bank of India *(SBI) from six
banks.  Work on the plant is expected to begin next month. JVL aims to
expand its total installed capacity to 9,56,000 tpa by end of 2010.

This acquisition will provide captive source of input for this plant. JVL
has also entered into deals to import crude palm oil and soya bean oil
directly from plantation owners in Malaysia, Indonesia, Argentina and
Brazil.

The company has recently acquired a sick fertiliser company in Bihar, thus
foraying into the fertiliser segment. It has also acquired 260 acres of land
bank as part of the deal. The company has proposed real estate development
of 333 acres in Varanasi, and plans to develop this into a multi-services
SEZ.

JVL commissioned a 3-mw agrobased captive turbine in FY07, which has helped
it to reduce power costs. The company has applied for sale of carbon credits
from the same.


-- 
Regards

Hardik Shah

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