DE-RISK AND DIVERSIFY

Despite the consumption slowdown, contract manufacturer Hindustan Foods finds itself in a strong position because of its smart strategies.

- ASHUTOSH KUMAR

OVER THE PAST couple of years, the FMCG segment has been a difficult space to be in for businesses, as domestic consumption has been on shaky ground because of reasons such as high inflation, high interest rates, and stagnant wages, among others.

However, wading through these challenges with moves like strategic diversification, and some element of “serendipity”—as the management prefers to put it—contract manufacturing firm Hindustan Foods Ltd (HFL) has come out with flying colours. The company has registered robust revenue and profitability growth, claiming the 18th spot in Fortune India’s maiden 100 Emerging Stars list. HFL registered a 25.10% CAGR in net sales between FY22 and FY24, while clocking a 35.66% CAGR in net profit.

With its presence in F&B, personal care, health and wellness, beauty and make-up, footwear, and insecticides, among others, HFL's client list includes top brands like Hindustan Unilever Ltd, Reckitt Benckiser India, Knorr India, Kwality Wall's, Paper Boat, and Hush Puppies, to name a few. Set up in 1988 as a nutritional food JV between Goa’s Dempo group and Glaxo India, HFL was taken over by Vanity Case Group in 2013, spreading its wings across FMCG categories. Today, it has 36 factories across India.

Growth drivers