Hindustan Food has planned to invest INR 125 Crore (16.93 million USD) in a new manufacturing plant in north India. This is with the aims of achieving the revenue goal of INR 2,000 crore in 2022 (270.82 million USD). The new plant will be for a leading fast-moving consumer goods (FMCG) brand.
Hindustan Foods Limited (HFL) on Tuesday said its subsidiary will invest ₹125 crore to set up a manufacturing facility in north India. “The company will be undertaking a capital expenditure of ₹125 crore in the northern region of India, via its wholly-owned subsidiary HFL Consumer Products,” Hindustan Foods said in a regulatory filing.
Commenting on the new investment, Sameer R Kothari, managing director, Hindustan Foods said, “The demand for contract manufacturing in the FMCG industry is growing rapidly. We are in continuous discussions for new projects with our customers which include some of the leading brands in this space.”
“We are committed to our goal of achieving ₹2,000 crore of revenue by FY2022 and believe all the capex projects will play a key role in helping us reach this milestone,” he further added.
The new facility is part of the company’s consolidated plans to expand its footprint in contract manufacturing space for the Fast-moving consumer goods (FMCG) products, Hindustan Foods said.
The subsidiary will set up a food and beverages manufacturing facility for a leading FMCG brand, the company said. The work for the said facility will commence from the last quarter of the current fiscal, it further added. The commercial production is expected to begin from Q4FY22, FMCG major said.
Earlier in the year, the company had planned an investment of ₹30 crores for setting up two home care liquid manufacturing facilities in Silvassa for a leading brand. “Despite the coronavirus restrictions and lockdowns, one of the facility was set up in a record time and commercial production for the same commenced in September 2020. This facility is expected to reach optimal capacity utilisation by end of the financial year. The second facility is under construction and commercial production is expected to begin from Q4FY21,” it said.
In November, Hindustan Foods Limited announced an investment of ₹150 crores in the Hyderabad facility, for manufacturing of home and personal care products. The work for the said facility is expected to be completed by Q3FY22.
The company had reported revenue of ₹771.90 crore in financial year 2019-20.