Mishtann Foods shares nudged higher today before surrendering the gains after the FMCG major announced that it has incorporated a new subsidiary in the United Arab of Emirates (UAE) to import Thai rice and Jasmine rice from Thailand.
The BSE listed company has named the just incorporated subsidiary as 'Grow and Grub Nutrients FZ – LLC' in UAE, the company said in a regulatory filing. The wholly owned firm will focus on international trade with increased exposure in various untapped markets in its growth journey across geographical boundaries.
"The new subsidiary will enable the company to strengthen its position as a leading agro-products company in India and abroad," the company said in a statement.
“This expansion is a significant milestone as it will enable the area of operations and reach out to a new customer base by providing them with wider options," Hitesh Patel, MD, Mishtann Foods, said.
The decision, he said, is a part of the company's plan to increase its exposure in various untapped markets across geographical boundaries. The company also has a sizeable presence in wheat and pulses segment. It is also engaged in the production and marketing of rock salts and other edible products of daily need.
With the global rice shortage looming large and being dubbed as the worst in 20 years, the Indian FMCG player has played a pivotal role in ensuring no shortage.
Shares of the Ahmedabad-headquartered agro food product company have on a downtrend for a year now, correcting more than 40 per cent in a year. The company has a market cap of Rs 752 crore.