Hatsun Agro Product Limited is planning to sell the assets of the RTE (Ready to Eat) business and its brand “Oyalo”. The company’s board will meet on March 9 to consider and approve the proposal, said a company information to the Bombay Stock Exchange.
Last month, the Chennai-based company said it would discontinue its RTE business, which comprised pizzas and pastas, under the Oyalo brand, with immediate effect. The Covid pandemic dealt a major blow to this business, and it was not viable to continue, the company’s chairman RG Chandramogan had said. The impact of the closure will be very minimal on the company as it was contributing just 0.5 per cent of the total sales of around ₹6,000 crore, he added.
Due to Covid restrictions, there were not many takers for RTE products that were manufactured at Karur in Tamil Nadu. Hatsun was a SME player in this segment, and Oyalo was an upcoming brand. It was difficult to sustain this business for an SME brand, he said.
The cost related to the discontinuance is estimated at around ₹17 crore, said a company communication to the BSE.