The Hindu Business Line : US consortium to pick up 19 pc stake in Himalya International

MUSHROOM and vegetables exporter Himalya International has set up a new facility in Himachal Pradesh for mozzarella cheese from buffalo milk in collaboration with a US-based company. The collaborator - Winona Foods - funded the plant at a cost of $2.5 million, the company's Chairman and Managing Director, Mr Manmohan Malik, told Business Line.

A consortium of US-based companies is also picking up stake in the company, according to industry sources. Winona Foods along with others in the consortium is understood to be picking up around 19 per cent stake in the company at an investment of around Rs 18 lakh.

The first phase of production at the plant would begin in December. During the current fiscal to March 31, 2006, the company expects to produce about 20 lakh pounds of cheese.

At full capacity, the company would process 1.5 crore pounds of cheese a year valued at $25 million. Himalya has entered into a marketing arrangement with a collaborator's arm, Artiginale Italiano Inc, for buyback of the production. Cheese produced by Himalya, would be marketed by Artiginale in North America.

This speciality cheese has hitherto been the exclusive domain of Italy. Himalya International shall be the first company, outside Italy, to process this speciality cheese. The company has imported an entire cheese unit from the US.

The unit complied with the highest international standards for dairy products called SA3, Mr Malik said.

In terms of sourcing buffalo milk, the company has established backward linkages directly from 2,000 farmers.This month, the company has received an order of baby potatoes from a North American retail chain worth $2.5 million. During the current quarter, the company expects to clock a 25 per cent sales growth, Mr Malik indicated.

Meanwhile, the promoters of Himalya have decided to pick up 11 per cent stake held by Himachal Pradesh State Industrial Development Corporation Ltd. The average purchase price has been fixed at around Rs 17.50 per share. The promoters in the past few months have already purchased shares from HPSIDC representing around five per cent of the paid-up capital.

The company has also decided to make a preferential allotment of 3 lakh shares to IDBI as a part of the one-time settlement in cash and equity against a term loan Rs 6.05 crore. The allotment would be made under the SEBI norms.On Tuesday, the stock ended down at Rs 15.94 against the previous close of Rs 16.02 on the BSE. Total traded volumes stood at 64,320 during the day.

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