Himalaya Food International Limited , a key player in the Indian food processing industry, is showing strong signs of recovery and growth, as revealed during its 34th Annual General Meeting (AGM) held on September 30. Chairman and CEO ManMohan Malik addressed shareholders, highlighting the company's resilience and strategic initiatives aimed at strengthening its market position and financial health.

Diversification Strategy and Market Expansion

In response to challenges such as U.S. trade barriers, Himalaya Food International has implemented a diversification strategy to reduce dependence on single markets. The company has successfully re-entered the Indian market, which is experiencing robust growth, while simultaneously expanding into new export markets across multiple regions. This balanced approach is expected to secure sustainable growth and stability for the company.

French Fry Processing Expansion

A significant development in Himalaya Food International's growth strategy is the progress of its new French Fry processing line. With an annual capacity of 54,000 MT, the new line is on schedule for commissioning before March 2026. This expansion is set to substantially strengthen the company's product portfolio, production scale, and revenue base.

Financial Restructuring and Debt Reduction

Himalaya Food International has made substantial progress in its financial restructuring efforts:

• Successfully completed a Rights Issue
• Discharged 78.00% of the One-Time Settlement (OTS) liability with consortium banks
• Remaining 22.00% of OTS liability scheduled for payment within the current financial year
• Preparing contingency funding options, including a potential second Rights Issue or Preferential Issue

The company aims to achieve a debt-free balance sheet in the near future, demonstrating its commitment to financial stability and growth.

Legal Proceedings

Himalaya Food International continues to pursue legal matters:

1. Ongoing proceedings against Simplot in the Delhi High Court
2. Plans to initiate a tort action in the U.S. Federal Court for damages and loss of profits
3. Filed an appeal against New India Assurance Co. regarding a reduction in the Vadnagar fire insurance claim amount

Looking Ahead

Chairman Malik expressed confidence in the company's future, stating that Himalaya Food International is well-positioned to regain its leadership in the Indian food processing industry while reinforcing its international presence. The company is committed to sustaining quarter-over-quarter growth in the coming years, backed by a strengthened balance sheet, expanded production capacity, and a broader market footprint.

AGM Proceedings

The 34th AGM, conducted through video conferencing, saw the discussion of several key agenda items:

• Adoption of audited financial statements
• Re-appointment of Mrs. Sangita Malik as a director
• Approval for the sale of non-core assets
• Increase in authorized share capital
• Approval for availing loan facilities from promoter and promoter group
• Approval for further issue of equity shares
• Increase in managerial remuneration of Mr. ManMohan Malik

The meeting, which commenced at 5:07 PM IST and concluded at 5:42 PM IST, provided a platform for shareholders to engage with the management and vote on crucial matters affecting the company's future.

As Himalaya Food International continues its journey of recovery and growth, stakeholders will be keenly watching the company's progress in implementing its strategic initiatives and achieving its financial goals.

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.