Himalaya Food to Rebuild French Fries Business with Rs 700 Crore Target
Himalaya Food to Rebuild French Fries Business with Rs 700 Crore Target

The chairman of Himalaya Food International announced that the company is working on reviving its french fries business in the frozen and canned food processing industry.

They plan to install a 50,000 tonne per annum french fries line and a 12,000 tonne potato speciality line, with a completion target of December 2023 to align with the potato season starting in March 2024.

According to a letter by Himalaya Foods International Ltd (HFIL) chairman Man Mohan Malik to the shareholders, the new french fries line and potato speciality line have the capability to generate Rs 700 crore in additional revenue at maximum capacity.

Himalaya Foods International Ltd (HFIL) was previously in a joint venture (JV) with Simplot USA. However, a dispute arose between the two partners and the matter was taken to arbitration in Singapore.

As per reports, the American joint venture partner had requested a refund of USD 14 million in relation to the sale of the french fries line and specialty potato lines.

The tribunal has ordered Simplot to return the equipment related to the french fries and potato specialty lines, while Himalaya Foods International Ltd (HFIL) has been instructed to pay a sum of USD 3.96 million.

The company has paid off its debts with a consortium of banks through a one-time settlement (OTS) of Rs 82.80 crore.

Himalaya Food International's current focus is on reinforcing its working capital and generating resources from non-core assets. They also aim to fulfill their backlog of export orders.

The chairman mentioned that there is a high demand for french fries and other fried and frozen potato products both in India and around the world.

 He further added that Gujarat has emerged as a major center for exporting potato-based products owing to extensive contract farming and favorable weather conditions.

Rather than relying on the conventional sources in Europe and North America, the regions of South-East Asia, Japan, and the Middle East are turning to Gujarat for their french fries supply.

Stay on top – Get the daily news from Indian Retailer in your inbox
Also Worth Reading