Hindustan Foods Limited (HFL) has unveiled plans to merge a promoter-owned manufacturing facility located in Nashik, Maharashtra, into its operations. The facility, which is owned by Avalon Cosmetics Private Limited (ACPL), produces a wide range of food products including soups, mealmakers, energy beverages, and other dry powder items. This strategic move is expected to significantly boost HFL’s manufacturing capabilities and strengthen its position in the fast-moving consumer goods (FMCG) sector.
The facility, located on a 16-acre plot in the Sinnar MIDC area, was originally acquired by ACPL from Smith & Nephew Private Limited, an Indo-German joint venture, in 2007-08. With over 100,000 square feet of built-up area, the plant has an annual production capacity of around 5,000 tons of food products. These products are supplied to various FMCG companies across India.
At a board meeting held on September 24, 2024, HFL’s directors approved the demerger of ACPL’s Nashik facility into Hindustan Foods Limited. The merger is part of HFL’s larger plan to consolidate its operations, optimize land use, and position itself for future growth.
Sameer Kothari, Managing Director of HFL, emphasized the long-term benefits of this merger. “The promoters, who have been engaged in the contract manufacturing business even before acquiring HFL, have taken various steps to ensure that all operations are consolidated under Hindustan Foods Limited. This merger will enhance management focus and enable us to scale our operations even further,” Kothari said.
He further explained that the integration of ACPL’s facility will also allow the company to leverage recent developments, such as the establishment of a new ice cream production facility in Nashik. “This will help optimize the use of industrial land and pave the way for further growth and diversification into new product categories,” he added. Kothari expressed confidence that these initiatives will ultimately create long-term value for HFL’s shareholders and help the company better meet the growing needs of its customers.
In addition to the merger, the board has also agreed to streamline the promoter’s shareholding by merging the holding company into Hindustan Foods Limited. This step will result in a more transparent shareholding structure, benefiting both investors and the company’s governance.
With this merger, HFL aims to consolidate its position as a major player in the Indian FMCG manufacturing sector. By expanding its production capabilities and streamlining its operations, the company is poised to take advantage of the growing demand in both domestic and international markets.
