Dairy products maker Hastun Agro Product Ltd. (HAPL) has entered into a pact with Naga Ltd. to sell its Ready to Eat (RTE) business and ‘Oyalo’ brand for ₹25 crore.
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On Wednesday, the board of HAPL approved the sale and transfer of all assets of the RTE business (excluding the land and buildings, crates and cans). Naga Ltd is an outsider and do not belong to promoter/promoter group/group companies.
“It is not a slump sale. The transaction will be effective by end of April 2022,” it said in a regulatory filing.
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HAPL felt it was the best proposition to sell the RTE business considering its contribution to annual sales, which was less than 0.5% of the total sales of the company.
Further RTE business with lesser volume is also not profitable. The Board was satisfied that the discontinuance will not affect adversely HAPL’s profitability, it said.
As of March 2021, RTE’s net-worth (based on gross value of assets) was ₹59.87 crore (5.86% of net worth of company), while HAPL net worth was ₹1,021.51 crore.
The RTE range comprising of pizzas and pastas were manufactured and sold under the Oyalo brand.