Hindustan Foods Ltd continues to make strides in manufacturing of sports shoes as it acquires 3 manufacturing units of SSIPL Retail Ltd

Hindustan Foods Limited, renowned for its expertise in contract manufacturing within the FMCG and consumer goods sector, continues to make strides in the sports shoes manufacturing domain, in line with its previous announcement in December.

KNS Shoetech Private Limited ("KNS"), a wholly owned subsidiary of Hindustan Foods Limited, has entered into a Business Transfer Agreement (BTA) with SSIPL Retail Limited ("SSIPL"). This agreement entails the acquisition of manufacturing undertakings previously owned by SSIPL, located at Bangran and Bhagani in Himachal Pradesh as well as Kundli in Haryana.

The total outlay for the transaction was more than Rs. 100 crores with the BTA amount of nearly Rs 77 crores. The facilities are catering to key customers like Puma, Reebok, Asics, Sketchers, etc.

This acquisition marks a noteworthy expansion for KNS Shoetech Private Limited and Hindustan Foods Limited within the sports shoe manufacturing domain. This strategic move underscores the company's commitment to enhancing their manufacturing capabilities and strengthening their presence in this sector.

Himmaj Soni, Head of the Sports Shoes Division, Hindustan Foods Limited commented on the acquisition saying, "SSIPL is one of the pioneers of the sector having started manufacturing sports shoes and sneakers in 1995. The factories are state of the art facilities and the team which is one of the strongest in the industry has experience in catering to the requirements of all the leading brands in the country ‐ multinational and domestic. With this strong foundation, we are confident that we should be able to leverage the massive opportunity that is unfolding in the sector."

Sameer Kothari, Managing Director, Hindustan Foods Limited added that, "It is a matter of pride to welcome the more than 3,500 strong team of SSIPL to KNS. This acquisition should help establish KNS Shoetech as a premier choice for any brand looking to realize the "Make in India" opportunity. On the back of the Baddi acquisition and this one, we are confident that HFL should be able to meet the goal it had set for FY2025.

We continue to believe that HFL is the Brawn behind Brands driving the Indian Consumption Story."

Source : Equity Bulls

Keywords

HindustanFoods SportsShoes Acquisition SSIPLRetail