Allana Group and Chatha Food Limited (CFL) today announced the signing of the term sheet to establish a joint venture (JV) for manufacturing and sale of ready to cook and ready to eat meat products and chicken products with a capacity of 6000 metric tons and 4500 metric tons annually respectively. The estimated cost of the initial project stands at approx. INR 40.00 crore, which will be funded through a combination of debt and equity.
Under the terms of the term sheet, Allana Group will hold a 30% equity stake in the JV, while CFL will hold the remaining 70%. Additionally, the plant will produce a variety of ready-toeat and ready to cook foods catering to both domestic and international consumers.
Manish Muley, CEO, Allana Group, said, "The global demand for value-added ready-tocook products is on a steady rise, driven by changing consumer preferences towards convenience and health-conscious options. By joining forces with CFL, we are strategically positioning ourselves to capitalize on this growing overseas market opportunity. This partnership will enable us to enhance our product portfolio, optimize our supply chain, and strengthen our market position globally. Together, we aim to create a value proposition that caters to the evolving needs of consumers while delivering exceptional returns to our stakeholders. We expect that the new plant will be functional by end of 2025."
Paramjit Singh Chatha, Managing Director, Chatha Food Limited said, "Starting our journey in 1997, we have completed 27 years of producing and delivering Frozen Chicken and meat products to our customers across India. As one of the recognised companies in the RTE- RTC frozen food segments, our partnership with Allana Group is a proud moment for Chatha Foods Limited and it further strengthens our commitment for serving quality products to our customers in the domestic and international market. Together CFL & Allana will redefine industry standards, expand our reach in product portfolio and customer base and also creating new trends in the meat processing sector. The processing plant in the new JV shall be operational by the end of 2025.
Shares of Chatha Foods Ltd was last trading in BSE at Rs. 127.10 as compared to the previous close of Rs. 128.30. The total number of shares traded during the day was 154000 in over 69 trades.
The stock hit an intraday high of Rs. 131.00 and intraday low of 124.05. The net turnover during the day was Rs. 19765800.00.