Hindustan Foods Limited (HFL), a prominent player in the Indian food manufacturing sector, has announced a strategic move to expand its contract manufacturing operations. The company's wholly-owned subsidiary, HFL Consumer Products Private Limited (HCPPL), is set to acquire two ice-cream cone manufacturing facilities in Nashik, Maharashtra, through a slump sale transaction valued at ₹26.25 crore.

Acquisition Details

The acquisition involves two manufacturing facilities located in the MIDC area of Malegaon, Sinnar, Nashik:

1. Plot No. G-21, MIDC, Malegaon, Sinnar, Nashik
2. Plot No. A-42, MIDC, Malegaon, Sinnar, Nashik

These facilities, currently owned by M/s. Ashish Industries and M/s. Vijay, are engaged in the manufacturing of ice-cream cones, sleeve printing, and packaging of cones.

Financial Aspects

The transaction details are as follows:

Strategic Implications

This acquisition aligns with Hindustan Foods' strategy to:

1. Enter the contract manufacturing sector
2. Expand its business into ice-cream cone manufacturing
3. Diversify into sleeves printing and packaging of ice-cream cones

The company had previously announced its intention to invest up to ₹30 crore, including working capital, in this new venture.

Regulatory Compliance

The transaction has been disclosed in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. HFL has executed a Business Transfer Agreement (BTA) on November 11, subject to customary approvals and conditions precedent.

Timeline

Subject to the fulfillment of conditions set out in the BTA, the acquisition is expected to be completed by the third quarter of the fiscal year.

This strategic move by Hindustan Foods Limited demonstrates the company's commitment to growth and diversification in the food manufacturing sector. As the transaction progresses, investors and industry observers will be keen to see how this acquisition contributes to HFL's overall business performance and market position.

Hindustan Foods Limited, a prominent player in the Indian food industry, has received a significant boost to its financial credibility. India Ratings and Research, a leading credit rating agency, has reaffirmed and assigned an 'IND A+' issuer rating for the company's various bank loan facilities. This rating comes with a stable outlook, indicating a positive view of the company's financial health.

Rating Details

The rating announcement provides a comprehensive view of Hindustan Foods Limited's creditworthiness. Here's a breakdown of the ratings:

Understanding the Rating

The 'IND A+' rating is a strong indicator of Hindustan Foods Limited's financial stability. This rating suggests that the company has:

• A low risk of default
• Strong capacity to meet its financial commitments
• Resilience against economic fluctuations

The addition of a 'Stable' outlook further reinforces the positive assessment, implying that the rating is likely to remain unchanged in the near to medium term.

Implications for Investors and Stakeholders

This rating reaffirmation is significant for various stakeholders:

1. Investors: The strong rating may boost investor confidence in Hindustan Foods Limited's financial management and future prospects.
2. Lenders: Banks and financial institutions may view the company more favorably, potentially leading to better borrowing terms.
3. Business Partners: The rating could enhance the company's reputation among suppliers and customers.

Company's Response

In compliance with SEBI regulations, Hindustan Foods Limited promptly informed the BSE Limited and the National Stock Exchange of India Limited about this rating. The company's swift disclosure demonstrates its commitment to transparency and regulatory compliance.

As Hindustan Foods Limited continues to strengthen its position in the food industry, this rating serves as a testament to its financial robustness and may pave the way for further growth and expansion opportunities.