HFL announces acquisition of Beauty Care and Cosmetic products manufacturing business

Hindustan Foods Limited ("HFL" or the "Company"), is pleased to announce that it has entered into a Business Transfer Agreement ("BTA") to acquire the Business Undertaking of M/s. Ultra Beauty Care Private Limited. 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 FMCG companies and also certain D2C 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 FY 2026-27.

This move marks a significant step in the Company's journey to expand its footprint in the fast-growing beauty and personal care segment. The acquisition enables the Company to attract customers looking for smaller and flexible production runs for new product & brands launches for existing brands and also new D2C players. 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 6 acres, 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 utilization and unlock operating leverage for the acquisition.

Commenting on the development Sameer Kothari, Managing Director said, "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.

Additionally, our ability to draw synergy across various Business Verticals, beverages in this instance, allows us to create long-term value for all stakeholders by ensuring better utilization of the resources. We are confident that this acquisition will help us better serve our customers".

Source : Equity Bulls

Keywords

HindustanFoods BTA Acquisition UltraBeautyCare