In August 2020, the company's board had approved an investment of up to Rs 100 crore in HFL Consumer Products, for incurring capital expenditure to commence their business.

The company's subsidiary will be setting up a food & beverages manufacturing facility for a leading FMCG brand. The work for the said facility will commence from Q4FY21 and commercial production is expected to begin from Q4FY22. The new facility is part of company's consolidated plans to expand its footprint in contract manufacturing space for the FMCG products. The capex by the subsidiary is likely to be funded through combination of internal accruals and debt.

Commenting on the Capex plans, Sameer R. Kothari, managing director said, The demand for contract manufacturing in FMCG industry is growing rapidly. We are in continuous discussions for new projects with our customers which include some of the leading brands in this space.

The recent capex announcements highlight the strength of our customer relationships and the ongoing trends in the industry. Execution skill is the key to success in contract manufacturing space and these new projects are an accreditation of our skills and the trust of the customer. We are committed to our goal of achieving, Rs.2,000 crores of revenue by FY2022 and believe all the capex projects will play a key role in helping us reach this milestone.

We continue to be a preferred partner and one stop solution provider for our customers. With strong manufacturing capabilities, management expertise and strong customer relationships, Hindustan Foods is well positioned for multi‐fold growth in coming years.

Hindustan Foods offers dedicated and shared manufacturing services to top FMCG corporates who are looking to minimize cost while maximizing product quality in the post‐GST environment.

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Hindustan Foods announced that the company will be undertaking a capital expenditure of Rs.125 crore in the Northern region of India, via its Wholly Owned Subsidiary (WOS), HFL Consumer Products.

In August 2020, the Board of Directors of HFL had approved an investment of up to Rs.100 crore in HFL Consumer Products, for incurring capital expenditure to commence their business.

The WOS will be setting up a Food & Beverages manufacturing facility for a leading FMCG brand. The work for the said facility will commence from Q4FY21 and commercial production is expected to begin from Q4FY22. The new facility is part of company's consolidated plans to expand its footprint in contract manufacturing space for the FMCG products. The capex by the WOS is likely to be funded through combination of internal accruals and debt.

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Hindustan Foods Ltd rose 4.09% today to trade at Rs 1133.95. The S&P BSE FMCG Sector index is up 0.12% to quote at 12269.75. The index is up 8.91 % over last one month. Among the other constituents of the index, Gillette India Ltd increased 2.86% and Nath Bio-Genes (India) Ltd added 2.24% on the day. The S&P BSE FMCG Sector index went up 7.7 % over last one year compared to the 13.6% surge in benchmark SENSEX.

Hindustan Foods Ltd has added 18.17% over last one month compared to 8.91% gain in S&P BSE FMCG Sector index and 6.08% rise in the SENSEX. On the BSE, 1009 shares were traded in the counter so far compared with average daily volumes of 2149 shares in the past one month. The stock hit a record high of Rs 1133.95 on 10 Dec 2020. The stock hit a 52-week low of Rs 384 on 20 Mar 2020.

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Net profit of Hindustan Foods rose 67.09% to Rs 7.92 crore in the quarter ended September 2020 as against Rs 4.74 crore during the previous quarter ended September 2019. Sales rose 84.61% to Rs 318.45 crore in the quarter ended September 2020 as against Rs 172.50 crore during the previous quarter ended September 2019.

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