Sarveshwar Foods Limited has received government approval for a basmati rice cluster project valued at ₹197.29 crores in Jammu & Kashmir. This development marks an expansion initiative for the food processing company in the northern region.

Project Overview

The approved basmati cluster project represents an investment in agricultural infrastructure and food processing capabilities. Key project details are outlined below:

Strategic Significance

The approval of this basmati cluster project may allow Sarveshwar Foods to address the demand for basmati rice. Jammu & Kashmir's climate and soil conditions are suitable for basmati cultivation and processing operations.

The project is expected to enhance the company's processing infrastructure and supply chain capabilities in the region. This development aligns with government initiatives to promote agricultural infrastructure and food processing industries in Jammu & Kashmir.

Company Profile

Sarveshwar Foods Limited operates in the FMCG sector and is classified as a small-cap company. The company focuses on food processing and has been expanding its operations in the food industry.

The government approval for this project may indicate confidence in the company's capabilities and its potential contribution to the regional agricultural economy.

Sarveshwar Foods Limited has announced the acquisition of a 100% equity stake in Himalayan Ancient Foods Private Limited, as approved by its board of directors. The acquisition, valued at ₹1.00 lakh, will make Himalayan Ancient Foods a wholly owned subsidiary of the company.

Strategic Purpose of Acquisition

The board approved this acquisition to create a dedicated Special Purpose Vehicle (SPV) for the execution, implementation, and management of the Holistic Agriculture Development Programme (HADP) Project. This strategic move aims to ensure focused operations, efficient governance, ring-fencing of project risks, and regulatory compliance for the agriculture development initiative.

Transaction Details

The acquisition involves purchasing 1,000 shares at a face value of ₹100.00 each, totaling ₹1.00 lakh for 100% of the paid-up equity share capital.

Target Company Profile

Himalayan Ancient Foods Private Limited was incorporated on February 05, 2015, under the provisions of the Companies Act, 2013. The company has its registered office address near State Bank of India, Bari Brahmana, Jammu, Jammu Kashmir - 181133.

Regulatory Compliance

The transaction qualifies as a Related Party Transaction due to common directorship and promoter interest between Sarveshwar Foods Limited and Himalayan Ancient Foods Private Limited. However, the transaction has been conducted at arm's length basis and received approval from both the audit committee meeting and board meeting, ensuring compliance with the provisions of the Companies Act, 2013 and SEBI regulations.

Board Meeting and Documentation

The board meeting approved the execution of Share Transfer Deed in Form SH-4 and authorized Mr. Harbans Lal to execute the share transfer, sign Form SH-4, and complete all necessary formalities for the acquisition. The acquisition is expected to be completed within a mutually agreed timeframe between the parties, subject to completion of customary formalities.