Company expects to complete the acquisition by the first quarter of the next financial year (FY27)
Hindustan Foods has entered into a Business Transfer Agreement (BTA) to acquire the business undertaking of Ultra Beauty Care. The undertaking, located at Aurangabad, Maharashtra, is engaged in the contract manufacturing of a comprehensive range of ayurvedic, herbal, beauty care and cosmetic products.
It manufactures for large fast-moving consumer goods (fmcg) companies and also certain direct-to-consumers players in the Beauty and Cosmetic segment. The proposed transaction will be executed on a slump sale and going concern basis, subject to the fulfilment of certain conditions precedent as outlined in the BTA. Company expects to complete the acquisition by the first quarter of the next financial year (FY27).
“This proposed acquisition represents an important step in our growth strategy. The BPC category continues to grow and attract newer brands who are looking for faster innovation and smaller production runs. We intend to position this facility to offer these solutions to not only Indian brands but also will be aggressively pursuing export led opportunities through this acquisition,” stated Sameer Kothari, Managing Director, Hindustan Foods.
This move marks a significant step in the company’s journey to expand its footprint in the fast-growing beauty and personal care segment. Proximity to Mumbai Port will also enable the company to position this site as a potential manufacturing partner for export of BPC products.
The factory is built on a total land area of six acre and the company intends to leverage the spare land and the infrastructure at the site to build a beverage manufacturing facility which will allow better utilisation and unlock operating leverage for the acquisition. The acquisition enables the company to attract customers looking for smaller and flexible production runs for new product and brands launches for existing brands and also new D2C players.
