Shares of Hindustan Foods gained 5% in early trade today after the firm said it would acquire Reckitt Benckiser Healthcare India’s pharmaceutical manufacturing facility in Baddi, Himachal Pradesh for Rs 156 crore.
Stock of Hindustan Foods hit upper circuit of 5% at Rs 730.60 against the previous close of Rs 695.85 on BSE. The stock opened higher at Rs 721. Hindustan Foods stock shares have gained 84.29% in a year and risen 90% in 2022. Total 1017 shares of the firm changed hands amounting to a turnover of Rs 7.37 lakh on BSE. Market cap of the firm rose to Rs 8236.98 cr on BSE.
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Hindustan Foods said that it has executed business transfer agreement (BTA) for acquisition of Reckitt Benckiser Health India’s (Reckitt) manufacturing facility in Village Sandholi, Baddi, Himachal Pradesh, in order to further expand its health care segment.
The transfer of the said manufacturing facility is expected to be completed by second half of calendar year 2023, the company added.
“Upon completion, this acquisition will further enhance the company’s offerings in the OTC Healthcare and Wellness segment, Hindustan Foods said.
The facility is into manufacturing of vast variety of OTC health and wellness products and skin creams including some of Reckitt’s key products. It is a facility with modern equipment and machinery and at par with global standards and adheres to the US FDA & MHRA, Russia GMP norms. Upon completion, HFL would manufacture various products for Reckitt and its affiliates in India and abroad.
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Hindustan Foods is primarily engaged in the business of contract manufacturing of fast-moving consumer goods (FMCG) products comprising primarily of home care, personal care, foods and refreshments, packing of tea and job working of shoes. Its product categories include food and beverages, home care, beauty and personal care, health and wellness, pest control, and leather, sportswear and accessories.
