After Rs 100 Cr Rights Issue, FMCG Stock Strengthens Manufacturing Base With This Acquisition Deal

Krishival Foods Limited, a small-cap FMCG company, has announced the acquisition and physical possession of an industrial property at Halkarni Industrial Area, Kolhapur, Maharashtra. This newly acquired land lies adjacent to Krishival's existing 5-acre MIDC facility in the same area.

The property, which spans over 8,000 square meters and features 1,770.49 square meters of constructed area, was acquired by Union Bank of India through a SARFAESI auction.
In order to increase production capacity and solidify its position in the growing marketplace for healthy snacks and food processing, the firm aims to use this facility for the future growth of its nuts and food processing activities.

The acquired parcel, which is around 2 acres in area, is located next to the company's current 5-acre MIDC site. This essentially boosts KFL's overall landholding in the Halkarni Industrial Area to nearly 7 acres. In keeping with its long-term capacity growth and value-added processing strategy, the corporation intends to use this land bank to build an integrated processing plant for its nut division. It is anticipated that the expanded footprint will boost KFL's operational effectiveness, facilitate backward integration, and support upcoming product innovations under its packaged foods division.

Commenting on the development, Sujit Bangar, Chairman, said, "This is a strategic, value-accretive addition to our manufacturing base. The adjacency to our existing MIDC land significantly de-risks future expansion, while the ready construction accelerates time-to-commission for our nuts division."

The aforementioned announcement followed Krishival Foods' announcement that, at its meeting on October 27, 2025, the Board of Directors of Krishival Foods authorized the raising of funds by offering and issuing partly paid-up equity shares of the company with a face value of Rs 10 each for a maximum of Rs 100 Cr through a rights issue to the company's eligible equity shareholders.

The terms and conditions of the Rights Issue, including but not limited to the issue price, rights entitlement ratio, record date, timing of the Rights Issue, terms of payment, and other related matters, will also be determined by the Board of Directors or the Rights Issue Committee in due course of time.

A rapidly expanding Indian FMCG company, Krishival Foods Ltd. has dedicated itself to creating sustainable, high-quality food products for both domestic and international markets. The firm aims to become a significant force in discretionary consumption with a diverse portfolio that includes dry fruits, snacks, ice cream, and other items, as well as a strong procurement strategy.

Krishival Foods' net profit increased by 13.97% to Rs 5.63 crore in the September 2025 quarter compared to Rs 4.94 crore in the September 2024 quarter. In Q2FY26, sales grew 49.52% to Rs 66.67 crore from Rs 44.59 crore in Q2FY25. Krishival Nuts has more than 10,000 retail touchpoints in more than 102 Tier II and III cities.

In addition to having more than 25,000 retail touchpoints, 200 distributors, and 25 Super Stockists for Melt N Mellow ice cream in Maharashtra, Karnataka, Goa, and Telangana, it also has "Krishival Nuts" products in a number of upscale modern trade super market chains, including "Nature's Basket," "Bombay Gourmet Stores," "Society Stores," "Food Square, etc.