Hatsun Agro Product board to sell its RTE business for Rs25 crore; Stock surges 1.5%

10 Mar 2022 , 10:52 AM

The board of directors of Hatsun Agro Product Limited have approved the Sale of Ready to Eat (RTE) Business to Naga Limited for a consideration of Rs25 crore by way of transfer of all the Assets of the RTE business (excluding the Land and Buildings, Crates and Cans).

The Agreement for sale of RTE (Ready to Eat) business by the Company to Naga Limited has been entered into March 09, 2022. The Sale is conditional upon satisfactory completion of the respective conditions precedent by the parties, said company in a regulatory filing.

Further, the Board took note that, it is the best proposition to the Company to Sell the RTE business at Rs25 crores considering its contribution to annual sales, which is less than 0.5% of the total sales of the Company and further RTE business with lesser volume is also not profitable. The Board was satisfied that the discontinuance will not affect adversely the profitability of the Company.

Revenue of RTE Business for the FY 2020-21 was Rs18.49 crore (0.33% of Rs5575.51 crore being Revenue of the Company).

At around 10:55 AM, Hatsun Agro Product was trading at Rs1,083.20 apiece up by Rs15.9 or 1.49% on the BSE.