Hindustan Foods announces robust financial growth and strategic acquisitions

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Hindustan Foods Limited (HFL), a leading diversified FMCG contract manufacturer, has unveiled its unaudited financial results for the quarter and nine months ending 31st December 2023, showcasing significant growth and strategic expansion. The company’s performance highlights a robust increase in profits and revenue, coupled with key acquisitions that position it for future growth.

For the nine-month period ending in December 2023, HFL reported revenues of Rs 2,027.4 crores, maintaining a steady pace from the previous year. More notably, the company’s EBITDA surged by 29% to Rs 164.8 crores, while the Profit After Tax (PAT) saw a remarkable 38% increase to Rs 70.1 crores. These financial milestones underscore HFL’s operational efficiency and strategic focus.

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In the third quarter of the fiscal year 2024, the company continued its upward trajectory with a 7% growth in revenues, amounting to Rs 730.3 crores. Both EBITDA and PAT grew by 29%, highlighting consistent performance across its diversified portfolio.

Hindustan Foods Limited Expands Portfolio with Strategic Investments Amidst Strong Financial Performance

Hindustan Foods Limited Expands Portfolio with Strategic Investments Amidst Strong Financial Performance

Operational updates include the completion of the acquisition of the Baddi plant for Rs. 128 crores, marking HFL’s foray into the pharmaceutical and non-pharmaceutical sectors. This strategic move into OTC health and wellness products and skin creams diversifies HFL’s manufacturing capabilities. Additionally, through its wholly-owned subsidiary KNS Shoetech Pvt. Ltd., HFL has acquired a sports shoe manufacturing unit in Kundli, Haryana, for Rs. 31 crores, and is in the process of acquiring another facility with an expected investment of Rs. 100 crores.

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HFL’s Managing Director, Sameer R. Kothari, expressed optimism about the company’s strategic investments, particularly highlighting the potential in the OTC Pharma sector and the sports shoes manufacturing sector. These acquisitions are expected to significantly contribute to HFL’s growth trajectory.

Furthermore, the company has successfully raised Rs. 400 crores through a preferential issue of warrants, indicating strong investor confidence. The establishment of a juice manufacturing facility in Guwahati, Assam, and a Greenfield Ice Cream facility in Haryana, further exemplifies HFL’s aggressive expansion plans, aiming for a top-line achievement of Rs 4000 crores by FY25.

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Hindustan Foods Limited’s journey from its inception in 1984 to becoming a diversified FMCG powerhouse under the Vanity Case Group showcases its commitment to excellence and innovation.

With a focus on minimizing costs while maximizing product quality, HFL is poised to set new benchmarks in the FMCG sector.

Hindustan Foods Limited’s strategic expansions and financial performance are indicative of a well-executed growth strategy in the competitive FMCG sector. The company’s diversification into new manufacturing sectors, such as pharmaceuticals and sports shoes, coupled with significant capital investments, positions HFL for sustained growth. This approach not only leverages India’s post-GST FMCG landscape but also sets a precedent for how contract manufacturers can evolve to meet changing market demands.

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