Hindustan Foods saw its share price jump 2% in early trading on September 25, 2024, following the announcement of a merger with a promoter-owned entity. This strategic move aims to consolidate the company's operations, expanding its manufacturing footprint in Nashik, Maharashtra. By 09:21 am, Hindustan Foods shares were trading at ₹ 666.75, marking an increase of ₹ 14.25 or 2.18% on the BSE. Investors are encouraged to buy shares online to take advantage of this upward trend.
Expansion into Nashik's manufacturing hub
The merger involves the demerging of Avalon Cosmetics' (ACPL) Nashik plant into Hindustan Foods, a facility that has a robust history. ACPL, which acquired the factory from Smith & Nephew Private Limited, an Indo-German joint venture, in 2007-08, has successfully operated it as a food manufacturing unit. Spanning 16 acres in the MIDC, Sinnar region, this plant produces approximately 5,000 tons of soups, meal-makers, energy beverages, and other dry products annually, catering to numerous FMCG companies across India.
With this expansion, Hindustan Foods aims to leverage the Nashik plant's capacity, ensuring streamlined operations and optimised production capabilities. The announcement has generated significant investor interest, prompting many to buy shares online and ride the wave of expected growth.
Future growth prospects and diversification
The merger also includes plans for the development of a new Ice Cream facility in Nashik, signalling further diversification. Hindustan Foods' Managing Director, Sameer Kothari, stated, "This is one step in the direction of enhancing management focus and growth in scale and operations." The consolidation of promoter shareholding into Hindustan Foods will also bring transparency and make the stock more attractive to new investors, motivating them to buy shares online.
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