The company aims to increase its addressable market and expand the distribution network through the acquisition
Aiming at expanding its product range and diversifying its product portfolio in line with its overall growth strategy to cater to a broader market, DOMS, a stationery and art material brand has completed the acquisition of a 51.77 per cent equity stake in Uniclan Healthcare, a producer of baby diapers, wipes, and other baby hygiene products. With this, DOMS has now made Uniclan its subsidiary.
As a part of the transaction, the Company has acquired 71,16,080 equity shares for a total consideration of Rs 54.88 crore, of which Rs 28.88 crore shall be primary infusion, which will be utilised towards capacity expansion, debt repayment and funding working capital requirements by Uniclan, as per the company’s statement.
“This acquisition is a crucial step in our long-term strategy to explore new sectors that enhance our business portfolio and resonate well with our targeted focus on children in their growing years. While we remain focused on driving innovation and delivering value across our core business segments, the expansion is expected to boost our distribution network in the long term, opening new avenues for sales and contributing to our overall success,” stated Santosh Raveshia, Managing Director (MD), DOMS Industries.
DOMS aims to expand its addressable market by entering the diaper market, which is valued at approximately USD two billion and growing at a compound annual growth rate (CAGR) of approximately 16 per cent. Uniclan will benefit from DOMS’ extensive distribution network, including its strong relationships with super stockists and distributors that shall allow Uniclan to expand its market reach in the short term.
“We believe that with our focus on product quality and innovation, and leveraging the DOMS distribution network in India and globally, we shall be able to elevate Uniclan’s growth trajectory and expand our reach. By leveraging DOMS consumer knowledge and market expertise, we are confident that we can further strengthen our brand and continue to deliver exceptional products to our customers,” stated Vatsal Desai, Founder and Director, Uniclan Healthcare.
Uniclan has a state-of-the-art manufacturing facility in Jaipur, Rajasthan with an installed capacity of approximately 400 million pull-up pant-style baby diapers per annum which are primarily sold under its flagship brand ‘Wowper’. Uniclan is now focused on expanding its market reach by expanding its distribution network.
