Himalaya Food Pursues ₹72 Crore Claim Against Simplot Over Machinery

Himalaya Food International Ltd is taking legal action against Simplot at the Singapore International Arbitration Centre (SIAC), demanding approximately ₹72 crore in damages. The company alleges Simplot failed to return essential machinery, an issue that hampered Himalaya Food's production throughout fiscal years 2020-21 and 2021-22.

Alongside the SIAC arbitration, Himalaya Food plans to ask the Delhi High Court to establish the value of other custom equipment that Simplot has not returned. The SIAC arbitration is anticipated to be a fast-track proceeding, with an estimated budget of SGD 250,000.

This new arbitration claim is part of an ongoing legal history between the two companies. A prior SIAC award in March 2020 involved Simplot seeking a refund for potato processing lines, with the tribunal ordering Simplot to return equipment to Himalaya Food. Past disputes have involved multiple court cases and complex legal arguments.

The current claim highlights the financial consequences of the machinery dispute. Successfully resolving this arbitration could bolster Himalaya Food's finances and improve its production capabilities. However, the company faces challenges, including Simplot's past non-compliance with legal rulings.

Shareholders will be focused on the arbitration's progression and its potential financial implications. Himalaya Food is also exploring ways to fund ongoing litigation. The extent to which the company recovers the full ₹72 crore in damages will depend on the arbitration outcome and any potential global settlement talks. Investors should track developments in the SIAC proceedings, the Delhi High Court case, and the company's litigation funding strategies.