HMA Agro plans business expansion, signs facilities agreements

HMA Agro Industries Limited (HMA) is planning business expansion and has signed Facilities Agreements with ALM Food Products Limited (ALM Food) and ALM Industries Limited (A L M) to utilise facilities for processing and freezing.

The term of the above-said agreement is 3 years w.e.f. 01.08.2024 while the locking period of the agreement is 1 year. With the agreement, ALM Food & ALM shall arrange all the required certificates for the processing of goods while ALM Food & ALM would arrange necessary Insurance for the manufacturing facility at their own cost to HMA Agro Industries, as per a regulatory filing.

Earlier, CRISIL Ratings Limited, a credit rating agency, re-affirmed CRISIL A-/Stable rating on the enhanced long-term bank facilities of HMA Agro Industries Ltd.

CRISIL said that the rating continues to reflect the established market position and healthy financial risk profile of the HMA group. "These strengths are partially offset by low operating profitability," it added.

CRISIL Ratings has combined the business and financial risk profiles of HMA and its wholly-owned subsidiary, United Farm Products Pvt Ltd (UFPPL). These companies, together referred to as the HMA group, have common management and operational and financial linkages.