Himalaya Food International Moves Closer to Debt Resolution

Unknown Apr 02, 2026 1,000 Views

Himalaya Food International Ltd has provided an update on its ongoing one-time settlement (OTS) with a consortium of banks, marking a crucial step toward financial stability. The company has committed to paying the remaining OTS amount of 430 million rupees by September 30, reinforcing its effort...

The settlement agreement, initially set at 828 million rupees, has seen significant progress, with Himalaya Food already repaying 560 million rupees. The remaining balance is expected to be cleared through strategic asset sales, including the planned divestment of agricultural land in Rajasthan for 325 million rupees.

The company has faced multiple challenges in its debt resolution journey, including delays caused by the COVID-19 pandemic and a devastating fire at its Vadnagar facility in May 2022. Despite these setbacks, Himalaya Food has secured formal extensions from its banking partners, allowing it to finalize the settlement without additional penalties.

As part of its broader restructuring efforts, the company is also advancing its operational expansion, including the implementation of a 50,000-ton-per-year French fries production line and a 12,000-ton-per-year frozen appetizer plant. These initiatives are expected to strengthen Himalaya Food’s financial position and support long-term growth.

Key Highlights:

- Himalaya Food International commits to paying the remaining OTS amount of 430 million rupees by September 30.
- Settlement agreement originally set at 828 million rupees, with 560 million rupees already repaid.
- Balance expected to be cleared through strategic asset sales, including divestment of Rajasthan agricultural land for 325 million rupees.
- Company faced delays due to COVID-19 and a fire at its Vadnagar facility in May 2022.
- Secured formal extensions from banking partners, allowing completion of the settlement without penalties.
- Operational expansion includes a 50,000-ton-per-year French fries production line and a 12,000-ton-per-year frozen appetizer plant.

Sources: Himalaya Food International Ltd, Economic Times, Business Standard.

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