Hindustan Foods to Enhance Production by Merging Nashik Plant

Hindustan Foods Limited (HFL) has announced plans to merge a promoter-owned entity, Avalon Cosmetics Private Limited (ACPL), as part of its expansion strategy to grow its manufacturing capabilities in Nashik, Maharashtra. 

ACPL, which was acquired from Smith & Nephew Private Limited in 2007-08, operates a food manufacturing facility in Sinnar MIDC, Nashik. The facility spans 16 acres and has a built-up area of over 1,00,000 square feet. It produces approximately 5,000 tons of soups, meal makers, energy beverages, and other dry powder products annually, catering to various FMCG companies across India.

In a meeting held on September 24, 2024, HFL’s Board of Directors decided to demerge ACPL’s Nashik plant into Hindustan Foods Limited to consolidate the business and maximise operational efficiency. The decision aims to further strengthen HFL’s presence in the food manufacturing segment and leverage ACPL’s existing capabilities.

Additionally, the Board has also resolved to streamline the promoter shareholding by merging the holding company into Hindustan Foods Limited, which will enhance transparency in the company’s shareholding structure. This move is expected to not only increase transparency but also solidify the company’s growth trajectory in the FMCG manufacturing space.

Commenting on this development, the Managing  Director, Sameer  Kothari, said, “The promoters who have been engaged in contract manufacturing business even before acquiring  HFL have taken various steps to ensure 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 optimise the use of industrial land, paving the way for future growth and diversification”. 

He also added, “I believe this initiative will create value for shareholders of HFL and will serve the growing needs of its customers.” 

About Hindustan Foods Limited

Hindustan Foods Limited is involved in contract manufacturing of various FMCG products such as home care, food, personal care, beverages etc. The company is also engaged in the manufacturing of leather shoes and accessories.

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