FMCG Stock HMA Agro Industries Signs Facilities Agreements For Business Expansion

HMA Agro Industries Limited (HMA), a small-cap FMCG company, announced on July 20th that it had signed Facilities Agreements with ALM Food Products Limited (ALM Food), located in Punjab, and ALM Industries Limited (A L M), located in Saharanpur, to utilise facilities for processing, freezing, and packaging frozen boneless buffalo meat.
The purpose of the agreement is to expand the business through slaughtering, chilling, processing, freezing and packing of frozen halal boneless buffalo meat facilities.

ALM Food manufactures boneless buffalo chilled/frozen meat- 211.50 Mt per day while ALM creates boneless buffalo chilled/frozen meat- 84.60 MT per day.

The term of the above-said agreement is 3 years w.e.f. 01.08.2024 while the locking period of the agreement is 1 year. With the agreement, ALM Food & ALM shall arrange all the required certificates for the processing of goods while ALM Food & ALM would arrange necessary Insurance for the manufacturing facility at their own cost to HMA Agro Industries, as per a regulatory filing.

On the growth outlook ahead, Gulzar Ahmad (Chairman & Whole Time Director) said "We are committed to optimizing our operations and exploring innovative solutions to enhance our profitability. As we move forward, we are confident that our strategic investments and focused execution will drive sustainable growth and deliver long-term value to our stakeholders. The company remains dedicated to delivering excellence and upholding its commitment to its customers, employees, and investors."

Regarded by the Indian government as a star export house in this segment, HMA Group is one of the largest manufacturers and exporters of frozen boneless buffalo meat, seafood, pet food, rice, and finished leather from India, with an annual export volume of around USD 0.5 billion. Across five Indian states-Uttar Pradesh, Punjab, Haryana, Rajasthan, and Maharashtra-HMA Group maintains eight facilities. HMA Agro Industries saw a notable 49.98% gain in sales on a consolidated basis, rising from Rs 32,092.19 million in March 2023 to Rs 48,132.90 million in March 2024.

Under the brand name HMA Agro Industries Ltd, the firm exports excellent products to over 49 countries across five continents. The brands that its prestigious clientele adore the most include HMA, Kamil, and Black Gold. The HMA Group has also expanded its operations into the export of fish, vegetables, and fruits under the brand Fresh Gold, pet food under the Darling Pets brand, and rice under the Green Gold brand.