Hindustan Foods Ltd Share Price – NSE  /  BSE

FMCG, Small Cap

Net profit of Hindustan Foods rose 29.06% to Rs 22.03 crore in the quarter ended December 2023 as against Rs 17.07 crore during the previous quarter ended December 2022. Sales rose 7.45% to Rs 729.15 crore in the quarter ended December 2023 as against Rs 678.62 crore during the previous quarter ended December 2022.

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Hindustan Foods will hold a meeting of the Board of Directors of the Company on 8 February 2024.

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The company will acquire manufacturing facility owned by KTPL located at Plot No. 427, EPIP Sector 53, HSIIDC, Kundli, Sonipat, Haryana. The said facility engaged in manufacturing of sports shoes components.

The acquisition of the manufacturing facility by KNS is in line with the firm’s strategy to enter contract manufacturing and expansion of its business into sneakers and sports shoes.

The company will acquire the manufacturing facility for cash consideration of Rs 30.72 crore. The said acquisition is expected to be completed by 4th quarter of FY 2023-24.

“In alignment with its earlier announcement in October, where the company unveiled plans to invest up to Rs. 100 crores in the sports shoes manufacturing domain, Hindustan Foods had also disclosed the acquisition of 100% shareholding in KNS. This move underscores the company's commitment to fortifying its presence in the ever‐expanding sports shoes market,” the company stated in press release.

Sameer Kothari, managing director, Hindustan Foods, said, “We are committed to explore new avenues for growth and had identified contract manufacturing of sports shoes as an exciting area to be in. The company continues to assess additional strategic acquisitions and investments in related industries, solidifying its stature as a prominent player in the Indian FMCG and consumer goods sector. With a forward‐thinking approach, Hindustan Foods is well‐positioned to sustain its legacy of delivering high‐quality products to FMCG players nationwide.”

Himmaj Soni, Head of the Sports Shoes Division, Hindustan Foods, said,“The acquisition of KNS Shoetech Private in October provided us with a foothold in a fast‐growing industry, and this latest acquisition will propels further. We are poised to fortify our standing in this dynamic sector and have charted plans for a brownfield investment in HFL's existing factory in Chennai to establish shoe manufacturing facilities in the South. This expansion not only extends our footprint but also positions us strategically, leveraging the proximity to the Chennai port to explore export opportunities.”

Hindustan Foods is primarily engaged in the business of contract manufacturing of FMCG products comprising primarily of home care, personal care, foods & refreshments including fruit juice and aerated juice, packing of tea and job working of shoes.

The company’s consolidated net profit jumped 30.3% of Rs 24.67 crore in Q2 FY24 as compared with Rs 18.93 crore posted in Q2 FY23. Revenue from operations rose 2% YoY to Rs 675.35 crore in Q2 FY24.

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Hindustan Foods announced a significant move to bolster it sports shoe  manufacturing business through the acquisition of a sports shoe manufacturing unit situated in Kundli, Haryana. 

This  strategic  development  is  facilitated  by  its  wholly  owned subsidiary, KNS Shoetech (KNS), and is formalized through a Business Transfer Agreement (BTA). 

The acquisition, valued at approximately Rs. 30.72 crore (subject to closing adjustments), marks a pivotal step in the company's expansion efforts within the sports shoes segment. 

In alignment with its earlier announcement in October, where the company unveiled plans to invest up to Rs. 100 crore in the sports shoes manufacturing domain, Hindustan Foods had also disclosed the acquisition of 100% shareholding in KNS. This move underscores the company's commitment to fortifying its presence in the everexpanding sports shoes market. 

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