A doomsayer who predicts calamity at every opportunity may perhaps tell
you to keep away from Himalaya International Ltd not because it’s a food
company that sells its products in the home markets and the overseas
markets but rather because the company is situated on the foothills of
the Himalaya’s and your doomsayer [ friend /enemy ] is very keen to
convince you that the ice will probably start melting no sooner you buy
the scrip! Doomsayers are ace masters in injecting large doses of
fear. So, what do you do? Well, just learn to live your life based on
the principles of MBI [ management by ignorance, which by the way, is
my favourite ]
But what’s so good about this company? Well, the most significant reason is the ambitious plans of the company to take on the giants in the food industry despite being a mid cap company. The company is on an aggressive growth path – just consider the following two ongoing projects. And lets not forget that in the corporate world, even a Lilliput can become a giant – e.g. Infosys, Apple Computers. So, can we expect Himalaya International Ltd to climb all the way to reach the peak of the Himalay.?] Guess, only time will tell..
1.Capex Rs.130 crores in Gujarat – Vadnagar, Mehsana
HIL proposes to set up a mega processing facility for mushrooms, vegetables, cheese etc The project is slated to be completed by October 2010. The company proposes to export bulk of its products from this location and also push its products into Western India. The plant will produce 9,000 tons yoghurt, 5,940 tons processed cheese, 9,000 tons mushrooms and 15,000 tons appetizers per year. The Company has tied up finances for the initial investment via a warrants issue, internal cash accruals and term loans of INR900 million from lenders. Himalya International Ltd. is also investing up to $2.5 million to set up a canned soup manufacturing facility at Vadnagar in Gujarat.
The advantages of this project are :
But what’s so good about this company? Well, the most significant reason is the ambitious plans of the company to take on the giants in the food industry despite being a mid cap company. The company is on an aggressive growth path – just consider the following two ongoing projects. And lets not forget that in the corporate world, even a Lilliput can become a giant – e.g. Infosys, Apple Computers. So, can we expect Himalaya International Ltd to climb all the way to reach the peak of the Himalay.?] Guess, only time will tell..
1.Capex Rs.130 crores in Gujarat – Vadnagar, Mehsana
HIL proposes to set up a mega processing facility for mushrooms, vegetables, cheese etc The project is slated to be completed by October 2010. The company proposes to export bulk of its products from this location and also push its products into Western India. The plant will produce 9,000 tons yoghurt, 5,940 tons processed cheese, 9,000 tons mushrooms and 15,000 tons appetizers per year. The Company has tied up finances for the initial investment via a warrants issue, internal cash accruals and term loans of INR900 million from lenders. Himalya International Ltd. is also investing up to $2.5 million to set up a canned soup manufacturing facility at Vadnagar in Gujarat.
The advantages of this project are :
- Proximity to raw materials
- Proximity to Port
- Proximity to major consuming markets
2.Capex Rs.110 crores in Rajasthan - Keshwana Rajput, Jaipur
The company proposes to set up an Almond and Cereal processing plant proposed project will be financed up to $ 6 million by EXIM bank of USA at concessional rate of 4.37 per cent interest under the India Infrastructure Facility.
HIL shall produce 400,000 nutrition bars / day on state of the art high tech line. Himalaya shall do contract farming for Oats in Rajasthan.The company shall produce 100 million "Cereal & Health Bars" & processing 7000 Tons of Almonds & Berry fruits per annum valued at more than $ 120 million.
Himalya is ISO 9001:2000 certified. Company with all it’s plants complying with International GMP & HACCP. Himalya has four complimenting production units at its 25-Acre complex.
- Mushrooms: HIL offer three varieties of Mushrooms; White (Agaricus), Crimini (Italian Brown) and Portobello
- Contract farming: Himalya has created partnerships with local farmers to produce all it’s raw material requirements from Vegetables to pure Buffalo milk.
- Specialty Vegetables: They process Vegetables & Baby potatoes grown especially in Sub-Himalayan terrain. Baby Potatoes are delicious & full of nutrition with tender skin. .
- Buffalo milk Italian Cheeses: Most recently they have ventured to coverage the pure Buffalo milk from India ‘the original home’ of water buffaloes with traditional Italian knowledge of making the real, authentic Mozzarella & Ricotta Cheeses under an Italian expert Raffaele Cioffi.
The company also sells Fruit blended yogurts in the metros under the brand ‘Himalaya Fresh.”
Himalaya International Limited has also entered the 4000 crore domestic market in Nutraceuticals and dietary supplements by launching Nutritional Supplements under brand name 1 Daily in NCR Delhi market. The company chairman Mr. Manmohan Malik told that company has tied up with U S Based Global Reliance Inc for technical collaborations and has launched four products under the brand name ‘1 Daily’ in accordance with international standards set up by WHO and USFDA on nutritional supplements. It has launched separate supplements for men and women keeping in view of their distinct anatomy, physical , emotional , biological and physiological requirements. The nutrional supplements for women is richer in calcium ,magnesium, iron & Vitamin A,B & E while the nutrional supplements for men is richer in Zinc, Lycopene, Selenium, Vitamin E & C, Manmohan Malik added.
I must admit that HIL is running a flourishing business amidst the pristine and mesmerizing beauty of nature.
Himalaya International Limited has also entered the 4000 crore domestic market in Nutraceuticals and dietary supplements by launching Nutritional Supplements under brand name 1 Daily in NCR Delhi market. The company chairman Mr. Manmohan Malik told that company has tied up with U S Based Global Reliance Inc for technical collaborations and has launched four products under the brand name ‘1 Daily’ in accordance with international standards set up by WHO and USFDA on nutritional supplements. It has launched separate supplements for men and women keeping in view of their distinct anatomy, physical , emotional , biological and physiological requirements. The nutrional supplements for women is richer in calcium ,magnesium, iron & Vitamin A,B & E while the nutrional supplements for men is richer in Zinc, Lycopene, Selenium, Vitamin E & C, Manmohan Malik added.
I must admit that HIL is running a flourishing business amidst the pristine and mesmerizing beauty of nature.
The shareholding pattern of HIL is as follows : Promotors 24.95, per
cent, Institutions 22.82 and FII’s have a 20.36 per cent stake in HIL.
So, at this juncture if any body thinks that the company is not worth
looking at may secretly re-rate this company and take a firm position in
HIL!
Sometime in May 2009, Benett Coleman & Company Limited had subscribed to Share Warrants in Himalya International, a leading FMCG company in frozen foods and nutrition
Sometime in May 2009, Benett Coleman & Company Limited had subscribed to Share Warrants in Himalya International, a leading FMCG company in frozen foods and nutrition
The
company has posted exceptional results in past five year with growth of
28 percent and 34 CAGR in top line and bottom line respectively. In FY 11, the company posted turnover of INR 85.32 Cr with EBIT standing at INR 28.62Cr.Upto Dec company has achieved a Turn over of Rs83.79 crores with Pat of 19.90 crores.
The company which has market capitalization of INR 133.64 Cr and is currently trading at an attractive P/BV of 0.80.
The stock is currently trading at P/E of 8.08x of FY 11 earnings and is
expected to rack in turnover of about INR 200 Cr in next two years due
to some great expansion plan. The stock at this current level looks really attractive citing the growth in consumer demand.
Recent Major Devlopment During FY11-12
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