Himalya International - A Turn around Story?


(value_hunter) #62

@apavel, Just an observation - there are many companies with the name Himalaya International registered in various parts of India. Interestingly, Both Himalya and Himalaya have same building name as Himalaya House in their registered address. Moreover, I came across a company named FFF Finger Food Factory whose MD is Mr. Jasbir Singh Batra and directors are Sanjiv Kakkar and Sangita Malik. Surprisingly, Mr. Jasbir Singh Batra runs another company called Hira stock solutions,a stock broking advisory firm. Further digging may give insight into this part of the story. My experience says all is not well in this company. If you are a speculator, you can try your hand with these guys on top of their game and market in fierce bull run. For me multibagger comes second being first not to become muti-beggar :wink:. So I advice caution !. We need to wait and watch how things unfold in future.


(Arun) #63

@ Value Hunter - Yes, Himalaya was the name first incorporated. Later when they want to become international export company they have removed “a” from Himalaya. After changing the name in 2009, old Himalaya name was not used in any transactions.

http://economictimes.indiatimes.com/magazines/himalya-dropped-an-a-to-become-a-global-player/articleshow/5032541.cms

If you search for Himalya International there are lot of addresses throws out.

https://site2corp.com/in/search

Himalaya House has two address

B-92, 9Th Floor, Himalaya House K.G. Marg New Delhi Central Delhi Delhi - 110001 India (Himalya and Simplot partnership address)

Himalaya House, 1, 142, Kirti Nagar, Kirti Nagar, Delhi - 110015 (Registered as Rice exporter which I have shared the link earlier)

And Finger Food Factory is also another brand name of Himalya International.

http://www.himalyainternational.com/brands.html

Could you be more specific about Hira Stock Solutions. I couldn’t find anything negative.

I have invested in the company and its major part of my portfolio.


(Arun) #64

Finger Food Factory is a retail food service company. The company offers a menu of quality fast food and side dishes to their customers. FFF has entered into a trademark license agreement with Himalaya International Inc, based in Hamilton, New Jersey, U.S.A., whereby FFF has been conferred an exclusive right to use the trademarks and service marks of Finger Food Factory.

Himalya International Ltd. holds 50% equity in the venture and has tie-up for the supply of quality food products to FFF.

Himalya International Limited has made its mark as quality food processor in North America, a market it entered fifteen years ago with its offering of frozen foods. The Company has recently entered into the Gulf market as well. The company went Public in 1995 and is listed on Bombay Stock Exchange. Himalya International is an ISO 22000; HACCP & Kosher certified Company. HIL has presently, over 1200 employees. The paid up capital of the Company is Rs. 51.40 Crs. as on 31.03.2014.

At present Himalya International Limited is involved in the following activities.
Mushroom growing and processing
Potato Processing
Vegetable processing
Cheese Production
Appetizers and breaded line
Dairy Products
Sweets & Snacks

Himalya International Ltd has integrated food processing facilities with In-house mushroom cultivation, contract farming for specialty vegetables and Baby Potatoes, and IQF processing. All equipments are world-class latest technology and are imported from USA, Denmark, Holland and Italy. HIL has also set up an imported plant from USA to produce specialty Buffalo Mozzarella Cheese.
Frozen Mushrooms, Vegetables and all ingredients are being marketed under ‘Himalya’ brand and Buffalo Mozzarella Cheese is being marketed under the brand ‘Buflalabella’. Infact, it is the first company to manufacture mozzarella cheese in India.

EXISTING MANUFACTURING FACILITIES of HIL

Himalya International Ltd has two modern manufacturing facilities at Village - Sukhbera, Paonta Sahib, Himachal Pradesh and Village – Sultanpur, Vadnagar, Mehsana, Gujarat for the manufacturing of the entire product range of the company. The details of the same are as under:

Unit I: Paonta Sahib, Himachal Pradesh

Particulars Installed Capacity in MT per annum
Fresh & IQF mushrooms, fruits and vegetables 6650
Canned Products 2640
Cheese & Milk products 2700
Sweets and Snacks 700
Yogurt 3000

Unit II: Mehsana, Gujarat

Particulars Installed Capacity in MT per annum
Mushrooms (Fresh & Canned) 10000
Dairy Products 6000
Appetizer 15000

• ISO Certification: HIL is an ISO 22000 Company.
• HACCP certificate: The HACCP compliance is a pre-requisite for entry into regulated export market like USA & EU.
• MOU with Retail majors: MOU with Bharti Retail & Reliance Retail have enabled the company to market its product in the domestic segment as well. The company has also partnered with Times group for media advertising for Domestic product.

HIL’s has entered into strategic alliance with Himalya International Inc. to function as Exclusive Consignee Distributor of Himalya International Limited. The company’s Paonta Sahib unit which was initially a 100% EOU with a continuous demand from USA and other countries, has now changed its status from 100% EOU to DTA since it has considerable demand from the domestic markets as well. The new unit of the company at Mehsana now caters to the majority of exports being made by the Company. Being close to Kandla port which is only 300 kms from the proposed manufacturing facility is a major advantage for the company.

Strategic Alliances

The strategy of Himalya is Global sales and marketing through partnerships and direct sales focused on the Institutional, food service and club stores. The company has entered into various Global strategic alliances for technology and marketing with various overseas agencies for marketing products as well as technology tie-up.

• Mushroom Associates Inc. PA, is a USA based corporation and it provides the latest technology and other relevant information to the company for growing and processing of mushrooms

Himalya International Ltd. has also entered into MOU with various retail giants like Bharti WalMart, Reliance Retail & BIG BAZAR for sale of its various products. A list of Major customers of HIL is as under:

Impressum
Himalya International Ltd. has also entered into MOU with various retail giants like Bharti WalMart, Reliance Retail & BIG BAZAR for sale of its various products. A list of Major customers of HIL is as under:

SUBWAY
Domino’s
Mother Dairy
Godrej
Haldiram
Wal Mart
Big Bazaar
Reliance Retail
Carrefour
Costco
Al Madina Hyper Market
and others …


(Arun) #65

(Arun) #66

Its quite old, just want to share


(Arun) #67

Not sure if its the latest - http://documents.mx/documents/himalya-international-limited.html

Corporate Presentation


(value_hunter) #68

@apavel I think what I am trying to convey is business per se, it is a great story to buy into, however investment returns wholly depend on the team (management) running the show and how they treat (read take care of) their minority business partners. It is they (minority share holders) who truly unlock the underline value of the business. This company gives me lot of evidence of corporate demeanour and in fact dishonesty to the core.

  1. If I believe your information, shouldn’t they have declared FFF Finger factory as subsidiary (50 % equity held by HIL) ? I found no mention in ARs of 14,15,16.

  2. If it is having any dealing or commercial transaction, is third party transaction declaration done? is it being conveniently covered under 10% annual revenue limit carpet?

  3. Why advances and loans are given to APJ laboratories? that to when you are under sever liquidity crunch. Bother about your self but not about minority shareholders of HIL (since APJ has nothing to do with HIL)?

  4. What is the relation they have with Mr. Batra who is MD of FFF finger factory whose long standing profession is stock advisory (since almost 15 years) and suddenly becomes MD and running day to day affairs of your company? isn’t this sound so strange?

  5. Please dig in more about why their JV with Simplot could not achieve said targets? My understanding is they did not broke due to not achieving the targets, it was due to poor corporate governance practices of the promoters? Does it sound too bad ?

Disclaimer: This is not to demean any person, institution or individual. It is my personal opinion and shared here in the context of on going discussion. Please carry your own due diligence to take your investment decisions.
Regards,
-CK


(Arun) #69

What you are saying is true in the sense that business should treat Minority Share holders, but in India how many companies effectively follow. And look at Infosys now?

1.FFF has entered into a trademark license agreement with Himalaya International Inc, based in Hamilton, New Jersey, U.S.A., whereby FFF has been conferred an exclusive right to use the trademarks and service marks of Finger Food Factory.

  1. Not sure. Below details from 2011 Annual Report
  2. APJ Laboratories is manufacturing 1 Daily health supplements for Himalya International.

  1. Not sure why its strange, they have 50% partnership with Himalya International Inc (Finger food Factory).
  2. Whether Simplot will leave like that if its due to corporate governance. And only Himalya has incurred around 23 crores losses.

Below is the example how Simplot sues another US firm

“The J.R. Simplot Co., a major agribusiness firm, is accusing its business partner, Washington farmer Frank Tiegs, of grossly mismanaging two joint venture food processing companies.”


Himalya is now suing the Simplot for causing damages in the Factories.

Disclosure- Invested, please do your own diligence and take an informed decision.


(Arun) #70

Share holding Report for Mar2017

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=0df139d8-d774-42e5-8c14-90c28d72662c

Only Sanjiv Kakkar share holding pattern is increased, something is incorrect. the percentage has not changed.

Doon Valley foods some 3000 odd shares was increased.


(manan1379) #71

as per bulk details on bse, doon valley (promoter group) had sold off 442159 shares on 29th march, 2017. however the share holding of doon valley as per recent filing is same as dec 2016. How is tht possible? It dosent add up


(Arun) #72

Yes , that is what i am referring, only odd 3000 shares difference was specified in shareholding report.

Already sent mail to [email protected]
[email protected]
[email protected](not sure if this correct one)

Can you please send mail / or talk to them for clarification


(manan1379) #73

Have sent the following mail to them, wont be possible for me to call as i am not based in india.

E-mail
Hi, my name is Manan Shah and I am an investor in your company Himalya International Limited. As per your recent stock exchange filings for March 2017, Doon Valley Foods § Ltd holds 30,68,150 shares (5.30%) and belongs to the promoter group. However as per bse bulk deals data for 29th March, 2017 the said company sold 442159 shares @ Rs. 28.55. But the shareholding of the said company has not changed since shareholding of the said company as per Dec 2016 filling is also 30,68,150 shares (5.30%). Can you please explain why is it so ?

Kindly find the attached links for the said data.

March 2017 shareholding : http://www.bseindia.com/corporates/shpPromoterNGroup.aspx?scripcd=526899&qtrid=93.00&QtrName=March%202017
Dec

Dec 2017 shareholding : http://www.bseindia.com/corporates/shpPromoterNGroup.aspx?scripcd=526899&qtrid=92.00&QtrName=December%202016

Bse bulk deal data :
http://www.bseindia.com/stock-share-price/stockreach_bulkblock.aspx?scripcode=526899&expandable=9

Regards,
Manan


(Arun) #74

I have not got any reply from the Company Secretary.


(Arun) #75

NCLT meeting held on 28April. Following is the excerpt of Man Mohan Malik speech.

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=2b92e509-3571-430c-a283-60394c60780c&param1=1


(Arun) #76

Clarification regarding non-payment of listing fees.


(Arun) #77

New products launched.


(Arun) #78

Results on 19May2017


(Arun) #79

Quarterly Results

http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/f3220ba4-d5cf-4b26-a707-1ccabc278129.pdf


(Arun) #80

Outcome of Board Meeting - Key take aways

Tie up with Spring Board ( Times Group) to market all the products all over in India.

To setup exclusive Franchisee Distribution System. Financial assistance under SIDBI Schemes Standup India

a . Himalya Distribution Hubs

b. Quick Service Vans

Expansion of Cold Chain

Rooftop Solar Power for captive use - (IMO - Its a wasteful expenditure)

Appointment of Dun & Bradstreet by Secured creditors to advice of distribution of assets under each demerged entity.


(Arun) #81

The Results are out and Positive. There is an improvement in results compared to Previous quarter.

Increase in revenue 29 Cr in March compared to Previous (Dec) quarter 27.3 Cr .

But if you compare with the previous quarter profit its little bit of disappointment.

Dec quarter with the Profit of 77 lacs compared to loss of 97 Lacs in this Year end.

Quarter Results compared with Previous year March 2016

With 2.5 times increase in EBIDTA margins from 2.6 Cr to 7 Cr with reduction in Net Loss from 9.9 Cr previous year to 3.5 Cr in this quarter.

Increase EPS of (-0.61) compared to previous year (-1.73)

Yearly Results

Sales revenue increased to 121 Cr and with a net loss of 2.4 Cr. Compared to previous year Net loss of 20.9 Cr.

With approximate 2 times increase in EBITDA Margins from 17Cr to 30 Cr.

Increase EPS of (-0.42) from (-3.61) Previous Year.