DOMS acquires 51% stake in SKIDO

DOMS Industries Limited ("DOMS"), recognized as one of India's fastestgrowing providers of stationery and art materials, has ventured into the manufacturing and retailing of bags, including school bags, pouches, and related items, to fortify its presence in the back-to-school market.

The Board of Directors of DOMS approved the acquisition of a 51% stake in SKIDO Industries Private Limited ("SKIDO") with an initial investment of ₹ 51,00,000 (Rupees Fifty-One Lakhs), leaving the remaining ownership with the Sehgals. The Sehgal Family, backed by extensive experience, will oversee the day-to-day operations of SKIDO under DOMS' strategic direction. Following this acquisition, SKIDO will operate as an independent entity, helmed by the co-founders, the Sehgal family, led by Mr. Pranay Sehgal.

DOMS has consistently pursued expansion opportunities in product lines relevant to children and young adults. Identifying bags as a complementary category to its existing offerings, DOMS aims to widen its market reach and enhance consumer engagement.

Mr. Santosh Raveshia, Managing Director at DOMS, emphasized the strategic importance of this acquisition, stating, "Expanding our product range to better cater to the needs of children and young adults has been a priority for DOMS. This investment aligns seamlessly with our vision, leveraging our distribution network and brand reputation to deliver high-quality products, supported by the expertise of the Sehgal Family."

Expressing enthusiasm for the partnership, Mr. Pranay Sehgal, Director at SKIDO, said, "Collaborating with DOMS presents an exciting opportunity for us to leverage their industry-leading position and expand our product offerings. DOMS' brand recognition and expansive distribution network will be instrumental in realizing our full potential."

With the acquisition, SKIDO plans to leverage DOMS' brand equity and distribution prowess to accelerate growth in the school bags segment and cater to the bag/pouch needs of the DOMS Group's Kits and Combos segment.

Shares of DOMS Industries Limited was last trading in BSE at Rs. 1495.40 as compared to the previous close of Rs. 1414.45. The total number of shares traded during the day was 4975 in over 814 trades.

The stock hit an intraday high of Rs. 1502.50 and intraday low of 1431.45. The net turnover during the day was Rs. 7269348.00.

Source : Equity Bulls

Keywords

INE321T01012 DOMSIndustries Stationary NewBusinessForay Manufacturing Retailing Bags Puches