Hindustan Foods Limited announced the plans to merge a promoter?owned entity to further expand its manufacturing footprint to Nashik, Maharashtra.
The said unit is owned by Avalon Cosmetics Private Limited ("ACPL"), a promoter owned company and is located in Sinnar MIDC, Nashik. ACPL acquired this factory from Smith & Nephew Private Limited, an Indo?German joint venture, in 2007?08. The facility, situated on 16 acres of land in MIDC, Sinnar, with over 100,000 square feet of built?up area, is a food manufacturing plant, producing nearly 5,000 tons of soups, meal?makers, energy beverages and other dry powder products annually, serving various FMCG companies in India.
To facilitate business consolidation and leverage recent developments, the Board of Directors in a meeting held on September 24th, 2024 decided to demerge ACPL's Nashik plant into Hindustan Foods Limited.
Sameer Kothari, Managing Director, explained; "The promoters who have been engaged in contract manufacturing business even before acquiring HFL have taken various steps to ensure that that all operations are consolidated in Hindustan Foods Limited. This is one step in that direction which will ensure enhanced management focus and growth in scale and operations.
Furthermore, as previously announced, the establishment of a new Ice Cream facility in Nashik will optimize the use of industrial land, paving the way for future growth and diversification".
Sameer added, "I believe this initiative will create value for shareholders of HFL and will serve the growing needs of its customers."
The Board has also agreed to take steps to streamline the shareholding of the promoters by merging the holding company into HFL. This will make the shareholding pattern more transparent. |
