MESSAGE FROM THE CHAIRMAN
Greetings from Himalya International Ltd.
I am pleased to share with you that after series of annihilating events since 2013 thecompany is back in traction. The operations have stabilized and we have been able toreverse the steep slide of FY 2015 by clocking 12.56 % increase in sales from 100.92 crorein FY 15 to 113.59 crore in FY 16. The operating profit also increased from Rs. 6.80 croreto Rs. 17.04 crore. There has been a major boost in our export sales by 137% during FY16.The Company has met all its legal and financial obligations during the last FY.
We successfully persisted in repelling the arbitration proceedings initiated by Simplotat Singapore and High Court of Singapore decided in our favour and the proceedings havebeen set aside.
We have been diligently pursuing our claims on Simplot for their act of abandonment ofour ransacked Gujarat facility and the matter is likely to be awarded in the current FY.
We have also pursued the Insurance claim for US warehouse fire and the case is underactive mediation proceedings in USA. We expect this to be concluded in current FY.
We propose to Reorganize the assets of the company under provision 391 - 394 to theCompanies' act 1956 and subsequent provision in Companies Act 2013 subject to 'Inprinciple' approval from all stakeholders.
The current structure of multi locational and diversified assets is restrictingparticipation by potential fresh investors who are interested in parts of what we havebut are hesitant for the complete multi locational diversified activities.
The first unit of the company established in 1995 diversified into various segmentsthat included Dairy Appetizers and Potato Products. This project is in extreme North ofIndia and is far from Major ports and thus is handicapped for export production. Theproduction from this plant is at disadvantage compared to Gujarat plant due to hugefreight costs involved.
In 2010 Company started building a new modern and larger unit at Vadnagar Gujarat.This Project is one of the largest units in India with large capacities for French FriesFrozen appetizers Dairy and canning. Major investment was made in this project from 2011to 2013. This project being close to Mundra port is idle for exports and whole of western& South India. It is in the special potato growing belt of the country suitable forfried potato products like French Fries. Most of the investment made at Gujarat is yet tobecome productive and especially the 10 TPH French Fry line already imported is to beinstalled and project is yet to be completed requiring further investments.
The present corporate structure after debt restructure of the company in 2014 is ahandicap and dissuades any fresh investment to complete the project and put all assets tooptimal use. The restructured entity will have clear focus on Exports from Mundra port anduse the major potential of specialty potato grown only in Gujarat.
The restructured separate entity due to its sheer size & locational advantages iscontemplated to be a big attraction to large national & international food industryplayers to invest execute and manage the project.
Company also has substantial investment in agriculture land in Rajasthan and the landis not yielding any revenues. This is 13.5 Hectare Agriculture land on NH8 in Rajasthanand has good real estate potential being surrounded by major industrial zones and it fallsin the Delhi Mumbai Freight corridor being developed by the GOI.
There are good prospects to develop EWS/LIG housing under PMAY "Housing for All by2022" national mission declared by GOI last year. The restructured entity toundertake this project will attract national & international funding and executionskills.
We believe that there can be great value creation and enhanced efficiency in the splitbusiness entities of the company under separate managements dedicated to core activity.
The assets reorganization committee has been constituted and the MerchantBanker/Advisory services have been appointed to take all legal approvals includingShareholder approval /SEBI / BSE & High Court.
We humbly rededicate our focussed attention to unlock the dormant potential of yourcompany and realize all your dreams from the investments you have made.
Thanking sincerely for your patience & understanding
For Himalya International Ltd.
Man Mohan Malik Chairman With Best Wishes
Dated : 18.08.2016