Heritage Foods, Novandie SNC of France to set up Greenfield plant

Heritage Foods Limited has approved a move to set up a joint venture with Novandie SNC based in Rue de la Republique, Maromme, France.

The 50:50 joint venture, to be incorporated with authorised capital of Rs 1 crore, will manufacture and market fruit and flavoured yogurts and western style desserts.

Each company will nominate two directors and set up a Greenfield plant with an investment of Rs 16 crore for the first plant whose commercial operation is expected during 2018.

The Board of Directors of the Hyderabad-based dairy company has approved stock split of Rs 10 equity share into two shares of face value of Rs 5 each. The company said the rationale for the stock split was to improve the liquidity of the shares in the stock market and also make it affordable to small investors. The process is likely to be completed within two months.

Pursuant to the composite scheme of arrangement, Future Retail Limited allotted 1,78,47,420 shares of Rs 2 each on July 27 and this investment is considered for fair valuation. The company also acquired the dairy business of Reliance Retail Limited on a slump basis, according to N Bhuvaneswari, Vice Chairman and Managing Director of Heritage Foods, informed BSE in a regulatory statement.

The company posted a lower profit of Rs 10.37 crore for the first quarter ended June 30, 2017 as against a profit of Rs 17.10 crore for the corresponding quarter last year.

Income for the first quarter was up at Rs 618.27 as against income of Rs 468.39 crore for the corresponding quarter last year.

Last fiscal ended March 31, 2017, the company logged in a profit of Rs 69.50 crore and income of Rs 1898.75 crore.

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