Mumbai, India – Hindustan Foods Limited, a leading contract manufacturer in the FMCG and consumer goods sector, has announced plans to invest up to Rs. 100 crores in setting up, acquiring, and investing in the sports shoes manufacturing sector. This strategic move signifies a significant bet on the growing sports shoes industry in India.
Thriving Indian Sports Shoes Market
The Indian sports shoes market has experienced remarkable growth in recent years. Driven by increasing consumer awareness about fitness and sports as well as a surge in demand for comfortable and fashionable sports footwear. This growth is a result of more Indians adopting an active and health-conscious lifestyle.
Hindustan Foods Limited’s financial commitment underlines the company’s dedication to becoming a significant player in the sports shoes manufacturing sector. And contributing to the “Make in India” initiative.
Acquisition of KNS Shoetech Private Limited
As a first step, the company has entered into a Share Purchase Agreement (SPA) to acquire 100% of the shareholding of KNS Shoetech Private Limited from its existing shareholder. KNS Shoetech has a manufacturing facility located in Kundli, Haryana. KNS Shoetech currently produce a wide range of sports shoes and sneakers.
Hindustan Foods Limited’s Managing Director, Sameer Kothari, commented on the acquisition, stating, “We have been closely monitoring the steps taken by the Indian Government to encourage sports shoes manufacturing in India. We are convinced that the policies, along with the growing customer demand, will enable a robust manufacturing ecosystem. We aim to leverage our expertise and experience in contract manufacturing to offer manufacturing solutions to Indian and global sports shoe brands. The acquisition of KNS Shoetech allows us to start our journey in this industry, and we look forward to strengthening our position in the future through additional capital expenditure and expansion.”
Continued Growth and Exploration
Hindustan Foods Limited remains committed to exploring and capitalizing on new growth opportunities. The company continues to evaluate additional strategic acquisitions and investments in related industries. It aims to solidify its position as a prominent player in the Indian FMCG and consumer goods sector. With a forward-thinking approach, Hindustan Foods is well-positioned to continue providing high-quality products to FMCG players across the country.
About Hindustan Foods Limited
Hindustan Foods Limited (HFL) was founded in 1984. The company offers dedicated and shared manufacturing services to FMCG corporations looking to minimize costs while maximizing product quality in the post-GST environment. In 2013, Vanity Case India Private Limited (“Vanity Case Group”) acquired a controlling stake in HFL. This led to diversification across various FMCG categories. This includes food & beverages, home care, fabric care, beauty & personal care, health care & wellness, leather & sports footwear, and household insecticides. The Vanity Case Group, established in 2001, is a large and diversified FMCG contract manufacturer in India. Over the years, HFL has transformed into a scalable, profitable, and diversified contract manufacturer serving various marquee customers.