Future Consumer and LT Foods rose 0.48% and 5.17% at 12:24 IST on BSE after these firms along with Genoa Rice Mills entered into a joint venture agreement for distribution of sona masoori rice.
The announcement was made after market hours yesterday, 6 December 2016.Future Consumer (up 0.48% at Rs 20.95) and LT Foods (up 5.17% at Rs 280.80) edged higher.
Meanwhile, the S&P BSE Sensex was up 47.96 points or 0.18% at 26,440.72.
Future Consumer, LT Foods and Genoa Rice Mills (Genoa) entered into a joint venture (JV) agreement dated 6 December 2016, for undertaking the business of manufacturing, marketing, sales, sourcing and distribution of Sona Masoori/regional South Indian rice.
Future Consumer and LT Foods each shall hold 50% of the paid-up share capital of Genoa. Future Consumer and LT Foods inter alia shall have the right to nominate two directors each, on the board of Genoa and they shall also have the right to vote on reserved matters as provided under the JV agreement.
LT Foods and Genoa are not related to any of the promoter/promoter entities of Future Consumer. The JV agreement executed between Future Consumer, LT Foods and Genoa does not fall within the ambit of related party transactions.
Future Consumer is India's first sourcing-to-supermarket food company by Future Group. On a consolidated basis, the company reported net loss of Rs 16.17 crore in Q2 September 2016, compared with net loss of Rs 28.66 crore in Q2 September 2015. Net sales rose 30.6% to Rs 559.83 crore in Q2 September 2016 over Q2 September 2015.
LT Foods has a diversified product portfolio of branded basmati rice, value-added staples and organic food. The company's consolidated net profit rose 9.4% to Rs 25.01 crore on 20.4% growth in net sales to Rs 829.24 crore in Q2 September 2016 over Q2 September 2015.
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