Mumbai: Enthused by orders from Reliance Retail and similar expectations from other retail chains, processed foods manufacturer Himalya International Ltd will expand its dairy processing plant and invest in a Yogurt unit.
Himalya International today said Mukesh Ambani-owned Reliance Retail has agreed to source Yogurt and flavoured milk from the company, Himalya International informed the Bombay Stock Exchange.
Reliance Retail has issued a letter of intent in this respect, Himalya said in its communique to BSE.
Reliance Retail has also entered into an agreement for buying cheese for its stores.
Last month, Himalya International signed an agreement with Reliance Retail for selling its products in the domestic market. Himalya has been exporting frozen products to the US for the past 10 years.
Himalya is planning to sell flavoured and fruit yogurts through various other retail chains, besides Reliance, in 2008.
Shares of Himalya International were trading at Rs23.95, up 4.81% in afternoon trade on the BSE.