Hindustan Foods Limited [HFL] is in the process of acquiring the factory at Samba Industrial Area, Jammu from Reckitt Benckiser (lndia) Private Limited [RB] on an going concern basis as a slump sale and also, the leasehold rights over the said factory from the State Industrial Development Corporation [SIDCO, J&K].
The said factory is basically into manufacturing of pest products. HFL has also entered into a Supply Agreement dated 26th Oct 2017, for supply of pest products to RB which shall commence from closing date to be decided by HFL and RB once all the legal documents for transfer of leasehold rights & factory from RB to HFL are executed between the parties and necessary government approvals [central or state] are received by HFL. It is expected that the transfer of the unit from RB to HFL and resultant start of operation by HFL will take approximately 2 months as HFL is required complete all legal documentation and obtain Govt. [state or central] approvals and HFL is very hopeful that it will complete the process of transfer by mid-December, 2017 at the latest and start manufacturing and supply from the said factory.
Mr. Sameer Kothari, Managing Director of Hindustan Foods Limited remarked, “This is a significant milestone for Hindustan Foods Limited. Last December, the Company took-over Ponds Exports Limited [A Hindustan Unilever enterprise] Leather business, and within a year, launched a premium label of leather footwear and accessories. This is a continuation of our quest for growth and our mission to provide worldclass solutions to the FMCG industry in the areas of Product Innovation, Manufacturing and Distribution. We are thrilled to be associated with a dynamic organization like RB, and entering the category of Household Pesticides enables us to diversify our product offering while continuing to concentrate on our core strategy of leveraging the consumption story of India. We are confident of achieving a minimum top line of Rs. 125 crores from this acquisition”.
Shares of HINDUSTAN FOODS LTD. was last trading in BSE at Rs.315 as compared to the previous close of Rs. 316. The total number of shares traded during the day was 1371 in over 20 trades.
The stock hit an intraday high of Rs. 329 and intraday low of 308. The net turnover during the day was Rs. 428468.
Source: Equity Bulls