Hershey buys 51 pct in India Godrej unit - report

MUMBAI Feb 28 (Reuters) - U.S. chocolate maker Hershey Co. (HSY.N) is buying 51 percent in India's Godrej Beverages & Foods Ltd. for 2.38 billion rupees ($54 million), the Economic Times said on Wednesday.

Hershey's stake would include 40 percent held by IL&FS, the newspaper said, citing a source close to the transaction.

Post acquisition, parent Godrej Industries Ltd. (GODI.BO) would hold 43 percent in the firm, with 6 percent held by a senior executive with the Godrej group, it said.

A senior executive at Godrej Beverages & Foods said the report was speculative.

"We are talking to many people, and Hershey is one among them," he said.

"The talks may or may not culminate in a deal," he said.

Hershey would also license some of its trademark rights to Godrej Beverages & Foods for about $2 million, besides royalty payments for domestic sales and exports, the newspaper said.

Godrej Beverages sells tea, edible oils, beverages, packaged foods and confectionery. It had acquired Nutrine, India's largest confectionery brand, last year, for about 2.5 billion rupees. ($1=44.3 rupees)