Hindustan Foods unit to invest Rs. 125 crore to set up facility in north India

On Tuesday, FMCG company Hindustan Foods said its subsidiary would invest Rs. 125 crore (US$ 16.91 million) to set up a manufacturing facility in northern India as part of its objective to more than double its revenue to Rs. 2,000 crore (US$ 270.52 million) by fiscal year 2021-22.

Hindustan Foods said in a regulatory filing, “The firm, through its wholly-owned subsidiary HFL Consumer Products, will undertake capital expenditure of Rs. 125 crore (US$ 16.91 million) in the northern region of India.”

Mr. Sameer R Kothari, Managing Director of Hindustan Foods, said that the market for contract manufacturing in the FMCG industry is increasing rapidly. “We are in ongoing negotiations with our clients for new ventures that involve some of the leading brands in this domain.”

“We are committed to our objective of achieving Rs. 2,000 crore (US$ 270.52 million) of revenue by FY2022 and believe that all capex projects will play a significant role in helping us achieve this milestone.”

In FY20, the company registered revenue of Rs. 771.90 crore (US$ 104.41 million).

Hindustan Foods stated that the new facility is part of the company's consolidated plans to extend its footprint in the contract manufacturing space for FMCG products. Commercial production is scheduled to begin from Q4FY22 onwards.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.