 "Hindustan Foods unit to invest Rs 125 cr to set up facility in north India")
FMCG firm Hindustan Foods on Tuesday said its subsidiary will invest Rs 125 crore to set up a manufacturing facility in north India as part of its goal to more than double its revenue to Rs 2,000 crore by fiscal year 2021-22.
"The company will be undertaking a capital expenditure of Rs 125 crore in the northern region of India, via its wholly-owned subsidiary HFL Consumer Products," Hindustan Foods said in a regulatory filing.
Hindustan Foods Managing Director Sameer R Kothari 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 Rs 2,000 crore of revenue by FY2022 and believe all the capex projects will play a key role in helping us reach this milestone.
The company had reported revenue of Rs 771.90 crore in financial year 2019-20.
Hindustan Foods said the new facility is part of the company's consolidated plans to expand its footprint in contract manufacturing space for the FMCG products.
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The subsidiary will set up a food and beverages manufacturing facility for a leading FMCG brand, the company said, adding that the work for the said facility will commence from the last quarter of the current fiscal.
The commercial production is expected to begin from Q4FY22, Hindustan Foods said.
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