Hindustan Foods signs agreement with Reckitt Benckiser; stock surges
Adding to its product range, cereal-based food products manufacturer, Hindustan Foods began the commercial production of pest care products on Thursday. The products already have pending buy orders of about 1,828 shares without any sellers in the market.
The pest products manufacturing unit at IGC II, SIDCO Samba, J&K from Reckitt Benckiser (India) that the company acquired on a going concern basis, will supply the pest care products to Reckitt Benckiser (India) and the company to recover an annual turnover of Rs. 125 crore from the unit.
The company has signed a 7 years committed supply agreement with Reckitt in expectations of a minimum revenue between the range of Rs. 750 crore and Rs. 850 crore during the agreement period, according to the statement of the company.
Following the development, the share price of the company surged on the bourses on Thursday. The stock breached its upper circuit of Rs. 376.20 per share and hit a fresh 52-week high on BSE. It also witnessed a spurt in its volume by more than 8.70 times as compared to its average volume. At the time of writing this report, the stock was up by 10 per cent at Rs. 376.20 per share on BSE on Thursday.