Himalaya Food International has reported robust financial results for the first quarter, alongside significant strategic developments aimed at strengthening its market position and financial health.

Financial Highlights

The company's unaudited financial results for Q1 show:

Despite a slight dip in revenue, Himalaya Food International has significantly improved its profitability, with profits soaring by 194.03% year-over-year.

Rights Issue Utilization

The company has made substantial progress in utilizing funds from its rights issue:

• Total subscription amount: Rs. 37.15 crore
• Rs. 17.01 crore through loan conversions from promoters
• Rs. 17.2 crore paid towards the Rs. 43 crore One-Time Settlement (OTS) with banks
• 50% of the final OTS amount completed

The board anticipates approval from three additional banks by month-end, following State Bank of India's approval.

US Market Strategy

In response to recent US tariffs on exports, the company has:

• Engaged with existing US customers to implement necessary price revisions
• Received positive responses from customers, indicating understanding and support for the revised pricing
• Directed efforts to diversify its global marketing footprint

Expansion and Diversification Plans

Himalaya Food International is set to:

• Re-enter the Indian domestic market after a 12-year hiatus following a failed joint venture
• Diversify its marketing strategy globally
• Establish a new domestic marketing team focusing on Retail, QSR, and Institutional segments

Production Capacity Enhancement

The company is progressing with the installation of a new French Fries production line:

• Installation expected to complete by December 2025
• Production slated to commence in February 2026

Corporate Governance

The board has scheduled the 34th Annual General Meeting for September 30, 2025, to be held via video conferencing or other audio-visual means.

Legal Considerations

The company is contemplating legal action against Simplot for equipment-related damages, stemming from issues dating back to March 2013.

Himalaya Food International's strong quarterly performance, coupled with strategic initiatives in market diversification and production capacity enhancement, positions the company for potential growth in the coming quarters. The successful utilization of rights issue funds and progress in settling bank obligations further strengthen its financial foundation.

Himalaya Food International Ltd (HFIL) has announced a comprehensive strategy to address the recent US tariff impositions, demonstrating resilience and adaptability in the face of challenging market conditions.

Price Revisions and Customer Support

The company has initiated discussions with its existing US customers to implement necessary price revisions. These adjustments aim to offset the impact of the newly imposed tariffs. In a positive development, HFIL reports that customers have shown understanding and willingness to support the revised pricing structure, indicating strong relationships and product value.

Global Market Diversification

In response to the tariff situation, HFIL is embarking on an ambitious plan to diversify its marketing footprint globally. This strategic move aims to reduce dependency on any single market and explore growth opportunities across multiple geographies.

Re-entry into the Indian Domestic Market

A key component of HFIL's diversification strategy is its planned re-entry into the Indian domestic market. This move comes after a significant 12-year absence, following the resolution of a previous Joint Venture dispute with Simplot. The company views India's large and growing market as a prime opportunity for expansion.

Management's Optimistic Outlook

Man Mohan Malik, Chairman & CEO of Himalaya Food International, expressed confidence in the company's ability to transform this challenging situation into a growth opportunity. In a statement to the Bombay Stock Exchange, Malik noted, "Management remains confident that this challenging development can be transformed into a once-in-a-lifetime opportunity, positioning Himalaya Food for stronger, broader, and more resilient growth in the years ahead."

Investor Communication

The company has proactively communicated these strategic initiatives to investors and the public, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency underscores HFIL's commitment to keeping stakeholders informed of significant developments affecting the company's operations and market position.

Himalaya Food International's multi-pronged approach, combining price adjustments, market diversification, and a return to the Indian market, showcases the company's proactive stance in navigating global trade challenges. As the situation unfolds, investors and industry observers will be keenly watching how these strategies impact the company's performance and market position in the coming months.