Hindustan Foods Limited announced the acquisition of 100 per cent equity stake in Reckitt Benckiser Scholl India Private Limited for Rs 73 crores.
According to the company’s exchange filing, “please be informed that Hindustan Foods Limited (“HFL” or “the Company”) has executed a Share Purchase Agreement (“SPA”) on january 24, 2022 with Reckitt Benckiser (India) Private Limited (“Reckitt”) to acquire 100% Equity Share Capital of Reckitt Benckiser Scholl India Private Limited (“RBSIPL”).”
This marks HFL’s entry into fast growing OTC Healthcare and Wellness segment as a contract manufacturer. HFL had announced its intention to enter into contract manufacturing in this segment as recently as August 21 and had secured an approval from the Board during the meeting held in November 2021, the statement said.
The factory is an Export Oriented Unit inter alia into manufacturing and supply of foot care products. The facility adheres to GMP norms and is approved by The Medicines and Healthcare products Regulatory Agency (“MHRA”), UK. All employees of the factory will be retained and HFL is expected to leverage the potential by expanding site utilisation and capacities and thus increase the share of business for foot care products worldwide from this site. The Factory would continue to act as third-party manufacturer for Reckitt and its affiliates in India and abroad, the company said in its press release.
Reckitt Benckiser Scholl India Private Limited (RBSIPL) is a Private Limited Company engaged inter alia in the business of manufacturing and supply of footcare products. RBSIPL was incorporated on 10-05-1994 and is an EOU business which inter alia manufactures and supplies foot care products to more than 15 countries in Europe, Australia and Far East.
Post completion of the transactions contemplated under the Share Purchase Agreement, the Company shall hold 100% of the total Equity Share Capital of RBSIPL, thereby will become the wholly owned Subsidiary of the Company, the filing said.
Sanjay Sehgal, President, Health & Wellness Division, Hindustan Foods Limited said, “We are happy with this acquisition that enables us to expand our footprint in the OTC Healthcare and Wellness segment, as a contract manufacturer. The factory fits perfectly well into the HFL ecosystem, and we are positive that we will be able to scale up and deliver efficiently to our customers, worldwide.”
HFL was established in 1988 as a result of Dempo Group’s foray into the FMCG segment through a joint venture with Glaxo India Limited, with the objective of manufacturing nutritional food products. In 2013, Vanity Case Group bought a controlling stake in Hindustan Foods Limited from Dempo Group of Goa and since then the company has diversified across various FMCG categories with manufacturing competencies in food and non-food, extending to Personal Care, Home Care, Food & Beverages, Leather Shoes and Accessories.
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