Singapore's sovereign wealth fund Temasek will buy 19.99 per cent stake in Godrej Industries' agriculture subsidiary Godrej Agrovet for Rs 572 crore.

The sovereign wealth fund will acquire the one-fifth of Godrej Agrovet through a combination of primary and secondary market transactions. The deal will value Godrej Agrovet at Rs 2,860 crore.

Godrej Industries said in a filing that the primary component would be utilized to support future expansion plans of Godrej Agrovet. However, the company didn't share details on the nature of that expansion plan.

Nadir Godrej, chairman of Godrej Industries, said that the company continued to be on a robust revenue and profit trajectory while also delivering strong returns on capital employed in it.

Over the past few years, the company aggressively increased manufacturing capacities, expanded its rural distribution, and launched avant-garde technologies for farmers.

Balram Singh Yadav, managing director of Godrej Agrovet, the deal with Temasek would further accelerate the company's performance.

Godrej Agrovet is a diversified agribusiness company that has interests in animal feed, agri-inputs, poultry and oil-palm. In the last fiscal, it generated 2,460 crore in revenue.