Tyson Foods to invest up to $4 mln in JV with Godrej

MUMBAI, Oct 8 (Reuters) - U.S. meat producer Tyson Foods Inc (TSN.N: Quote, Profile, Research) will invest between $2 million and $4 million in its Indian joint venture with Godrej Agrovet Ltd over the next one year, the top official of the U.S. company said on Wednesday. The funds will be used for developing and marketing products for the joint venture that will deliver processed and value-added poultry products, Chairman John Tyson told Reuters.

Poultry "is usually the low-cost protein in the market place, whether it's compared to mutton, beef or pork," Tyson said about India's potential. "There will come a desire to add more protein (as incomes rise)," he said.

Tyson spent $16 million for 51 percent stake in the venture, called Godrej Tyson Foods, he added.

Godrej Agrovet, a unit of diversified Godrej Industries Ltd (GODI.BO: Quote, Profile, Research) holds the remaining 49 percent stake in the venture which sells processed chicken brand 'Real Good' and 'ready-to eat' foods like chicken sausages under the 'Yummiez' brand. Last month Tyson Foods said it will sell 20 million shares of common stock and issue $450 million in notes to repay debts and for acquisitions, strategic investments and growing the business.

"We have a warchest of about $1.5 billion available to us for consideration as opportunities come up in the U.S. and in 2 to 3 prime markets," said Tyson. "We believe what's going on in the world, there's going to be some bargains."

Higher costs for feed and fuel have hurt meat companies globally, some of which have reported losses this year.

Tyson added the company was close to closing 2-3 deals in China in the next 3 to 6 months. (Reporting by Jasudha Kirpalani, Editing by Ramya Venugopal)