Hindustan Foods Limited has received a significant tax demand order from the Commercial Taxes Department in Tindivanam, Tamil Nadu, relating to alleged excess Input Tax Credit claims for the financial year 2021-22. The company disclosed this development through a regulatory filing on December 24, 2025, under Regulation 30 of the SEBI Listing Regulations.

Tax Demand Breakdown

The demand order issued under Section 73 of the CGST/SGST Act, 2017, comprises multiple components totaling ₹62.72 lakh:

Penalty Structure

The penalties have been imposed across different tax categories as detailed below:

Nature of Alleged Violation

The order pertains to alleged excess Input Tax Credit (ITC) claimed by the company during FY 2021-22. The Commercial Tax Officer has determined that Hindustan Foods Limited claimed ITC in excess of what was permissible under the applicable GST regulations, leading to the imposition of penalties and interest charges.

Company's Response and Impact Assessment

Hindustan Foods Limited has indicated that there is no material impact on the company's financials, operations, or other activities due to this order. The company has stated that it is in the process of contesting the said order, suggesting it disagrees with the tax department's assessment.

The company received the demand order on December 23, 2025, and promptly disclosed the information to the stock exchanges as required under regulatory obligations. This development represents a regulatory challenge that Hindustan Foods Limited will need to address through appropriate legal channels while continuing its business operations.

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.