Hindustan Foods Limited, a key supplier of packaged consumer goods to FMCG companies like Hindustan Unilever, Marico and Danone, on Monday announced that its wholly owned subsidiary, KNS Shoetech Private 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,” it said in a regulatory filing, while adding that the total outlay for the transaction was more than Rs 100 crore with the BTA amount of nearly Rs 77 crore. The acquisition of the sale business is expected to be completed by the first quarter of FY 2024-25. The said facilities cater to key brands like Puma, Reebok, Asics, Sketchers, etc.
The acquisition is an addition to the growth and expansion of KNS Shoetech Private Limited and is in line with 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, said, “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, “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.