Q4 should be much better with Potato processing revenue (recent order)! If they can add 100 stores in next 6 months then it will be interesting to see how revenue and margin looks like! Another trigger could be land sale and reducing debt! If we assume full year turnover 120 crore then interest expense alone will be around 15% of total sales. With increase in revenue, decrease in debt can impact very positively on bottomline. Over all going in right direction and just have to ride with conviction 
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Can u provide details of potato processing order ?
Himalya International Ltd opens its first Franchisee Store âHimalaya Food Companyâ on 14th January 2018 at D-448 G.F Ramphal Chowk Sector - 7 Dwarka, New Delhi.
The store will sell âAll Natural-No Preservativesâ, Healthier range of Himalaya Products and also serve select Appetizers, Burgers, French Fries and specially innovated healthier drinks developed under the brand âBURGERSâNâFRIES - ITS NOT JUNK FOODâ.
Can anyone from Delhi visit the store and give a review. Will be very helpful for all investors.
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Hey Khushi,
There are some youtube videos of the store uploaded by a guy named Sher Singh who seems to be an active retail investor in Himalya. You can check those out.
I have a very minor stake about 500 shares that I had picked up for 10 bucks a year back. I never had the belief in the promises made by the mngmt , but defnitely things seem to be on the right track at least for now although I would be wary of taking new positions in the stock at these valuations.
Board noted with satisfaction the new export orders for specialty potato based products
from large retail chains which will help to fill up the Fry & Freeze Lines round the year
and directed to ship all the orders efficiently!
Thatâs the point number 4 from bord meeting notes! Hope this answers!
That even I know, I was asking for details of that order.itis for what amount.
I see Sanwaria Consumer and Himalya International is looking same on being Promoter + Operator.
Himalya Int management has highlighted the result points again by giving announcement as âState Of Affairsâ. Biggies says, you should keep distance from these promoters who instead of thinking about business think about stock. What is your call? I will give them benefit of doubt and think that they are excited.
Here is the PDF, management has shared with us.
Disc: Invested in both
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You think that they are excited or exited? I think they are going in right direction! Have to keep track on land sale and further opening of franchise stores!
Disc - invested!
Well, you got that right. Not a big deal of guessing.
Corrected.
Disc: Invested.
Guys we might be at the cusp of another good run,âŚ
There was a huge cup and handle pattern which initially triggered the bull run, further now another cup and handle pattern in a daily chart specially hen it has the effect of a previous patternâŚ
Plus we are lucky we have the price caught in a ascending triangle, if that breakout happens at 43, we will have a double confirmationâŚ
This might be hugeâŚ
This is the daily chartâŚ
And this is the weekly chartâŚ
Also note the very short term trend which is of a symmetrical triangle, and the price is at the aprex, this can be a breakout to confirm the cup and handle pattern, at last final confirmation by breakout from the ascending triangleâŚ
Disclaimer⌠Not invested, looking for a good ascending triangle breakoutâŚ
32ee0858-29d4-41da-b1cc-1929ad84734e.pdf (866.5 KB)
Possible turnaround ?
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Hello everyone on this thread,
I read the annual report for the last 15 years and saw this thread afterwards.
Here are my unadulterated observations on the story year by year.
couple of red flags -
- I missed the demerger points completely, did not see a major mention in the AR
- Promoters are either very emotional people or they seriously lack execution skills
- so many business model changes - from B2C to contract manufacturing to diversified products and whatnot
- BMW, while having debt issues and low margins in not cool
- I donât think the land sale or the SIMPLOT money has been received yet, awaiting the FY25 annual report
- frequent dilution and Mr Kakkar becoming a promoter to FPI to promoter is weird
- decision making, especially between paying debt vs starting a French Fries line vs developing real estate vs entering new verticals - all misplaced or mistimed
Here are the notes, pardon the grammar/ language
2010
⢠Main activities as mushrooms, cheese, sweets & appetisers
⢠Launched all-natural & frozen products under Brand âHimalaya Freshâ
- Available in Big Bazar, Spence, Reliance Fresh, Metro & Walmart
⢠Gujarat plant (130 Cr capex, 21 hectares, 10 hectares given by Guj Gov..) in making for West & South India and Export to Gulf
⢠New Food Service launched â Finger Food Factory
o Breaded apetisers & baked potatoes
⢠Strategic partnership with Times Group (5 million warrants, wants to convert into equity in September 2010)
⢠Planning to put up a plant in Rajasthan to process almonds, Oats & nutritional bars
o Capex 115 Cr, 32 Acre; expected revenue 140 Cr by 2014
⢠Appointment of Subodh Amin as an independent director who is a dairy expert, and will help the company in R&D of new products
2011
⢠Promoter increases salary from 38 lacs to 1.02 Cr & 2.5% share of Profit
⢠Additional fund raise through warrants to promoters 2 million shares @ 25 Rs
⢠Gujarat plan production started, actual project cost 138 Cr Vs 130 Cr budget
⢠JV with Simplot for Sales in USA
⢠12 Lac ESOP granted @ price of 10 Rs in 2005; added 15 lac @ 11 Rs in 2011
2012
⢠JV with Simplot was originally for marketing products made in both plants in the USA, but now Himalaya wants to engage them in manufacturing as well
o Potata Processing Machinery for French Fries @ 12.75 Mil USD
o Simplot also wants to put money/ownership for Gujarat plant; Himalaya, by selling the plant, wants to improve the D/E ratio
⢠Two new Marketing Offices in Gurgaon
o Himalaya International for Freshly Canned & Chilled Products
o Himalaya Simplot Pvt Ltd (JV) for Frozen Products
⢠Addition in nature of business â Manufacture & Export Pharmaceuticals, drugs, nutraceticules & R&D for diesese prevention in Humans & Animals
⢠Salary of Chairman revised from 1.02 Cr to 1.2 Cr & 2.5% share of Profit
⢠Completed Gujrat Plant, 52 Acre for 170 Cr (Vs 130 Cr budgeted)
⢠Total Production Capacity 75000 Tons â the biggest food processing in India
2013
⢠Management declares, JV hasnât turned out well; due to the exclusivity clause, they couldnât market their products well, JV`s speed of execution wasnât well, hence the frozen food unit didnât perform well
⢠Management decides to end the JV,
o starts to market itself through its own marketing team in Gurgaon â secures Subway, Mother Dairy, Godrej Tyson
o sells off potato line for 30 Cr to JV, decides to put their line; fresh funding of 12.2 Rs shares for 12. 5 million shares as Fully Convertible Warrants to Trydin America LDC, USA, for the capex
o all financial obligations met through cash generated from the non JV business of Mushroom, Dairy & Sweet operations
⢠Fire at US warehouse, total inventory loss (amount unknown)
⢠Expects 100% growth in Export - decline USDINR leading to better competitiveness
⢠Decided to sell a land parcel on NH 8 as prices had gone up steeply
2014
⢠Losses in JV; ~11.5 Cr loss in Equity, ~15.6 Cr loss of inventory; Zero production in FY14 in appetisers in line (due to exclusivity)â ~25 Cr in Fire = ~53 Cr
⢠Dun & Bradstreet hired for Debt Restructuring
⢠Looking to open new markets in SAARC & Middle East
⢠Legal action to be taken against Simplot for JV losses/ Exclusivity
⢠48 lacs of interest to Exim bank was overdue in FY14; paid off two months later
2015
⢠JV agreement ended on June 2014, exclusivity clause ended
⢠Additional write off ~5.5 Cr in inventory; total now ~21.3 Cr
⢠Additional loss from Dollar to Rupee conversion of loans â 13.64 Cr
⢠Promoter infusion of 4.66 Cr equity to keep the operations running
⢠Both the plants were closed for almost full year
⢠Efforts to directly talk to US retails as well as reviving domestic business taken
⢠Developed and grown Portobollo Mushrooms, now started making products
2016
⢠Management declares operations stabilised, ~14% growth in domestic & 137% growth in export; company meets financial obligations
⢠Simplot initiated arbitration in Singapore, mngt gets a favourable ruling
⢠Company looking for restructuring operations & investments; raising 50 Mil USD debt from PE investors
o To develop a French Fries 10 TPH line at Gujarat (Apetisers & Snacks Pvt Ltd)
o Real Estate development on the free land parcel on NH8 (Himalaya Green Apartments Ltd)
2017
⢠posted growth in revenue and profit, mainly due to core mushroom
⢠Plans to revive plants by becoming a contract manufacturer for QSR chains, so additional working capital will not be required
o Invites to become a franchise or distributor of Himalaya
⢠Sanjiv Kakkar & Anita Kakkar resign as directors; they mostly moved abroad, as shareholding changed from promoter to FPI
2018
⢠Confident about boosting mushroom & exports, talks about exponential growth
⢠Got a good response for the Franchisee invitation, opened 20 stores in Delhi
⢠New additional directors
- Mr Sanjiv Kunar Kallar, Additional Executive Director
- Mr Akhil cupra, Additional Executive Director
- Mr. Surendra Kumar Kaushik, Additional Independent Director
- Mr Keshav Sharma, Additional Executive Director
2019
⢠Took a write off of ~21 Cr
o Written off unsaleable stock and bad debts â XX ?
o Paid off backlog of Statutory dues- XX ?
⢠Long term debt now at ~110 Cr; maturing at June 2024
o Banks agreed for an OTS of ~83 Cr Vs total loan 181 Cr
ď§ Didnât pay ~16 Cr of interest cost out of ~18 Cr
o Corporation Bank extended the loan period to 6 years to restructure
⢠Cut the manpower by 1/3rd from ~1000 to ~300
⢠New Executive Director & CFO â Akhil Gupta; 34 year old, 5.5 years with the company in sales, marketing and operations before becoming CFO
2020
⢠Won the arbitration; will get French Fries & speciality potato line back from Simplot & ~21 Cr + Interest to be paid by Himalaya to Simplot
⢠Paid 12 Cr as OTS payment to consortium of SBI, BoB & Exim bank
o long-term term debt now from 110 Cr to 72.85 (total 37.35 Cr reduction)
⢠Corporation bank with the merger of Union bank also agreed for OTS â 1.25 Cr paid
⢠signs of getting orders for Contract Processing of Frozen Potato products in India
⢠Sanjiv Kakkar gets reappointed as Director; Brother in Law of MD; co-founder of Himalaya; stays in USA and handles the Export business
⢠Lost 8 Cr (800 tons) of mushroom harvest due to Covid impact
⢠Akhil Gupta resigned as CFO and ED in Feb 2020;
o new CFO onboard âShamsher Ali
o new ED â Sanjiv Kakkar
2021
⢠out of ~83 Cr; 21 Cr was paid last year, 30 Cr will be paid through non-core asset sales, balance 30 Cr through business accruals
⢠new strategy for higher realisation; 40% capacity moved to growing high-value mushroom qualities from button mushrooms
⢠post getting the machines back â planning for 25K tons of French Fries and Potato products
⢠Contract manufacturing for Amul for frozen food
⢠Planning to re-enter the domestic market first through Food Services & then Retail
⢠Covid gave management an idea of starting Functional Food â a healthy and nutritious alternative â âHimalaya innovationsâ â medicinal mushrooms
o Reishi Mushrooms â used in China/ Japan for Anti-Ageing
o Lionâs mane â Vegetable Lobster ( same taste) â anxiety/concentration
o Cordyceps â used by athletes as an Energy Booster (known as Himalayan Viagra; banned in India for Ecological concerns, made by the company now)
o Portobello Jerky & Red Reishi mushroom Cookies â Ready to Eat
⢠Warrants allotted to promoter at 16.25 Rs totalling 3 Cr worth
⢠Resumes the French Fries line project after 4 years, 10000 tons of potato can be processed â capex 30 Cr
2022
⢠Fire in May 22, lasted for 40 hours, killed the processing line ; ammonia tank explosion was averted by luck, would have wiped out surrounding villages otherwise
o HP frozen food line will be revived this year in Q1
⢠Plant to clear 55 Cr of debt from land parcel sale and Fire Insurance claim
⢠Capex for French Fries line to make it operational from Internal Accurals
2023
⢠~68 Cr booked in operational losses as loss of plant & inventory in Fire; hence the
o EBIT and PAT is negative this year; hopefully will get insurance money next FY
o Also sold ~29 cr of plant and land
⢠60% OTS payment done, tenure extended till march 2024 for balance ~35 Cr
o Promoters to put ~25 Cr through loan to equity conversion to help
o Touting to become debt free by FY24
o Monetise the current site of Subhakhera (HP plant) of 25000 Sq meters
⢠French Fries line to be operational by June 24
⢠Fresh Capital of ~60 Cr through Share Issuance
2024
⢠Repaid 56 Cr out of 82.4; balance now 43 Cr (Vs 35 Cr) due to late payments, extension given till March 25
⢠French Fries line now delayed for operations to March 25 from June 24
⢠Rajshtan land deal finalised for 32.5 Cr
⢠Right Issue planned of 40 Cr
⢠Sanjiv Kakkar transferred 4.8 million shares to the promoter category to monetise the sale of shares to raise
⢠42 Cr settlement to be received from Simplot, and 32 Cr to be paid by Himalaya, The company does provide 7 acres of HP plant land to set off in worst case as provisions
⢠Changes in memorandum to make a full-fledged FMCG company (kind of)
⢠Two CS resigned in the last 2 years
⢠Contigent liability as of FY24 = ~75 Cr
o 12 Cr Income Tax
o 32 Cr DGFT
o ~30 Cr Simplot
Disclaimer - Tracking position taken at 13.8 Rs; going to watch a couple of quarters on OTS payment, French Fries line production, and quarterly run rate and AR
Valuation - at the current 100-120 Cr EV, I donât think it should be valued basis earnings but on the asset value. There is no margin of safety in business which donât deliver, as they can become 0 !
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Doon Valley promoter company sold some shares after doing a Right Issue at 13 odd rs
What is happening!
