The process by which eggs are produced is called oogenesis. Ovaries are formed on the underside of the hydra’s body. Ovarian interstitial cells divide repeatedly in the process of mitosis to form oogonia. Each oogonia grows in size by taking food and turns into an oocyte. Each oocyte divides by meiosis to produce 3 small polar bodies and one oocyte. The oocyte transforms into an egg. Ovum is covered with a slippery coat of gelatin.