Hindustan Foods Limited has received demand orders from the Commercial Taxes Department, Tindivanam, Tamil Nadu, totaling ₹4,95,16,269 for the financial year 2019-20. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on March 26, 2026.

Tax Demand Details

The demand orders were issued under section 74 of CGST/SGST Act, 2017 and received by the company on March 25, 2026. The orders relate to alleged excess refund released during FY 2019-20.

The tax penalty component amounts to ₹2,24,12,410 (Rupees Two Crores Twenty Four Lakhs Twelve Thousand Four Hundred Ten Only), while the interest portion totals ₹2,71,03,859 (Rupees Two Crores Seventy One Lakh Three Thousand Eight Hundred Fifty Nine Only).

Company's Response

Hindustan Foods Limited has stated that there is no material impact on the company's financials, operations, or other activities due to this demand order. The company is currently in the process of contesting the said order through appropriate legal channels.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The information was communicated to both BSE Limited and National Stock Exchange of India Limited.

Authority Details

The company secretary and legal head, Bankim Purohit (ACS: 21865), signed the regulatory filing on behalf of Hindustan Foods Limited, ensuring proper disclosure to the stock exchanges and regulatory authorities.

Hindustan Foods Limited has announced a significant expansion into the beauty and personal care manufacturing sector through the acquisition of Ultra Beauty Care Private Limited's business undertaking. The company executed a Business Transfer Agreement on March 23, 2026, marking a strategic move to diversify its operations beyond its traditional food business.

Acquisition Details

The transaction involves the acquisition of a manufacturing facility located at C-15, Five Star Industrial Area MIDC Shendra, Aurangabad, Maharashtra. The facility specializes in contract manufacturing of a comprehensive range of ayurvedic, herbal beauty care and cosmetic products, serving large FMCG companies and D2C players in the beauty and cosmetic segment.

Strategic Rationale and Management Commentary

The acquisition represents Hindustan Foods Limited's strategic entry into the contract manufacturing segment of beauty and personal care products. The facility enables the company to attract customers looking for smaller and flexible production runs for new product launches and existing brands, including new D2C players. The proximity to Mumbai Port positions the site as a potential manufacturing partner for export of beauty and personal care products.

Commenting on the development, Sameer Kothari, Managing Director said, "This proposed acquisition represents an important step in our growth strategy. The BPC category continues to grow and attract newer brands who are looking for faster innovation and smaller production runs. We intend to position this facility to offer these solutions to not only Indian brands but also will be aggressively pursuing export led opportunities through this acquisition."

Future Expansion Plans

The company intends to leverage the spare land and infrastructure at the 6-acre site to build a beverage manufacturing facility. This dual-purpose approach will allow better utilization and unlock operating leverage for the acquisition, creating synergies across various business verticals.

Completion Timeline and Approvals

The completion of the acquisition is subject to fulfillment of various conditions precedent as specified in the Business Transfer Agreement. The company expects to complete the transaction by the first quarter of FY 2026-27, pending customary governmental and regulatory approvals required for the transfer of licenses and permissions under applicable laws.

The acquisition does not constitute a related party transaction, and the promoter or promoter group of Hindustan Foods Limited has no interest in Ultra Beauty Care Private Limited. The transaction will be funded entirely through cash consideration, with the final amount subject to certain customary adjustments as outlined in the agreement terms and conditions.