Hatsun Agro plans to raise Rs 900 cr via QIP for multiple projects

Firm is setting up a number of milk and milk product units in Maharashtra, Tamil Nadu and Telangana

Hatsun Agro is planning to raise around Rs 900 crore through QIP. The Chennai-based dairy firm to seek shareholders' approval via postal ballot.

On Monday, the Board of Hatsun Agro Product at its meeting discussed the status of various capex projects for 2020-21. The projects include milk and milk products plant in Solapur, Maharashtra. The plant has been erected with a capacity to handle 400,000 litres per day (4 LLPD) and full-fledged commercial production is expected by November.

The milk products plant in Udhiyur, Dharapuram: The Company is also in the process of installing milk products manufacturing facility in Udhiyur in Tamil Nadu's Dharampur region. Work on the unit is expected to start in December. Also on the cards is a milk processing unit with a capacity of 1.5 LLPD to be set up in March 2021 on undisputed lands as per Court Order.

Ice Cream plant in Sangareddy district, Telengana: Construction work for the plant in Govindapur, Zaheerabad taluka of Telangana's Sangareddy district is currently on. The Plant is expected to be commissioned during Q4 of financial year 2020-21. The expected capex outflow is about Rs 245 crore.

Board also approved a bonus share issue in the ratio of 1:3.

The Chennai-based dairy firm reported a net profit of Rs 65.79 crore for the quarter ended September against Rs 25.24 crore posted in the same quarter a year ago. The company’s revenue rose 3.79 per cent year-on-year to Rs 1,327 crore from Rs 1,278.55 crore.