Godrej Capital forays into Dairy Farm Loans in South India with Creamline Dairy

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

As India’s consumption of dairy products continues to rise steadily, it presents both opportunities and challenges for dairy farmers. Godrej Capital acknowledges the importance of empowering these farmers with flexible financing to improve productivity and drive economic prosperity in the region. For this initiative, Godrej Capital has collaborated with Dvara E-Dairy as its partner to facilitate access to farmers.

With dairy farm loans, Godrej Capital will provide collateral-free lending for the purchase and maintenance of cattle to farmers empanelled with GAVL. This loan offering will ensure dairy farm owners get access to financing, along with other benefits, including a fully digitized process, quick sanction and disbursal, and flexible repayment options of up to two years.

Manish Shah, MD & CEO of Godrej Capital, said “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.”

Despite its limitations, the dairy sector remains a key contributor to India’s agrarian economy, supporting the livelihoods of 80 million farmers. Accounting for 70% of the total cost of milk, feeding is the single most crucial aspect of healthy dairying and is the biggest factor influencing the milk productivity of cattle and hence the upliftment of the farmer. An equal focus is needed to provide our farmers with resources to maintain their cattle health for sustained milk yields.

Bhupendra Suri, Chief Executive Officer, Godrej Jersey, said, “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.”