ADF Foods rallied 9.79% to Rs 910.85 after the company via its wholly-owned subsidiary, ADF Foods UK, entered into an exclusive distribution agreement with Patanjali Ayurved (Patanjali).
This agreement entails the distribution of Patanjali consumer goods in the geographic regions of Western Europe and United Kingdom. Patanjali is a rapidly growing Indian multinational consumer goods company based in Uttarakhand, India, that focuses on natural, herbal and ayurvedic products.
This development is in line with ADF Foods' strategy to widen its product portfolio and offer a complementary range to retailers, thus leading to better market penetration. ADF Foods already has presence in the UK and European markets through its branded ethnic foods business.
Bimal Thakkar, the chairman, managing director (MD) and chief executive officer (CEO) of ADF Foods, said: "This alliance with Patanjali will offer significant opportunities to our company to expand our product basket with our retailers. Leveraging our robust distribution network, we can funnel complementary product categories directly in stores thereby offering our consumers a wider range of products at their convenience. This will also enable us to further tap into the growing Indian diaspora market in Europe."
On a consolidated basis, the company reported a 0.6% fall in net profit to Rs 12.50 crore on a 16% rise in net sales to Rs 109.39 crore in Q2 FY22 over Q2 FY21.
ADF is a consumer-focused company and a leader in prepared ethnic food offering ready-to-eat (RTE) items, ready-to-cook (RTC) items, sauces, pickles, pastes, dips and frozen foods under its seven flagship brands.
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