The Hindustan Foods stocks was locked in upper circuit in Thursday's trade after the firm announced it has received all licences and started commercial production of pest products from January 2, 2018.
At 3:06 pm, the stock of the FMCG firm was up 10% or 34.20 points to Rs 376.20 on the BSE, a fresh 52-week high level. It closed at the same level on BSE.
The stock opened at 375 level and hit an intra day low of 348 on BSE.
The stock has risen 122 percent or 207 points on an yearly basis.
The firm after market hours said on Wednesday it has obtained all required licences and started commercial production of pest care products at the manufacturing factory in Jammu which it acquired from Reckitt Benckiser India last year.
The company said the manufacturing unit will supply the pest care products to Reckitt Benckiser (India) Pvt Ltd (RBIPL) and it hopes to achieve a turnover of Rs 125 crore annually from this unit.
"HFL has entered into a 7 years committed supply agreement with RBIPL and we hope to have a minimum revenue in the range of Rs 750 crore to Rs 850 crore during the entire agreement period," it added.
In October last year, Hindustan Foods announced acquisition of the pest products manufacturing factory of RB at Samba, Jammu as a going concern on a slump sale basis.
Hindustan Foods is engaged in the manufacture of milk and cereal-based baby food, extruded snacks, instant porridge and extruded cereal products. The firm also offers a range of instant mixes, breakfast cereals and health drinks.
The product range includes instant porridge, baby foods and baby cereals. The company offers Bonny Mix, which is an instant porridge and includes approximately five variants, such as natural, chocolate, lite, diabetes care and ragi rich.
It offers baby foods in approximately six variants, including wheat, wheat apple, wheat mixed fruit, wheat vegetable, multi-cereal mixed fruit and rice. It offers baby cereals in over two variants, including rice dal and rice vegetable.
The company manufactures Kurkure and infant food products, such as Farex, Easum and First Food for third parties on a monthly basis.
Hindustan Foods in February 2013 said it has joined hands with Pepsico India to produce various products, mainly Kurkure, of the beverages giant at its manufacturing facility in Goa.
The company offers a multi-cereal scoop, Cnergy in over three flavours. Its plant is located at Ponda, Goa.