In a strategic move aimed at diversifying its portfolio and tapping into the burgeoning sports footwear market, Hindustan Foods Ltd has announced its acquisition of sports-shoe manufacturing operations from SSIPL Retail Ltd for a whopping Rs 77 crore. The deal, orchestrated by KNS Shoetech Private Limited, a wholly owned subsidiary of Hindustan Foods, marks a significant expansion for the company into the realm of sports footwear.
Hindustan Foods, a prominent supplier of packaged consumer items to industry giants such as Hindustan Unilever, Marico, and Danone, is set to bolster its presence in the footwear segment through this acquisition. The move comes as part of the company’s broader strategy to diversify its business beyond its core FMCG operations and explore new avenues for growth.
With the acquisition of SSIPL’s manufacturing facilities located in Bangran and Bhagani in Himachal Pradesh, along with Kundli in Haryana, Hindustan Foods is poised to enhance its manufacturing capabilities significantly. These state-of-the-art facilities, renowned for catering to leading sports and footwear brands including Nike, Puma, Reebok, Asics, and Sketchers, will now fall under the purview of KNS Shoetech, positioning it as a premier contract manufacturer in India’s footwear industry.
Commenting on the acquisition, Himmaj Soni, Head of the Sports Shoes Division at Hindustan Foods, expressed confidence in the company’s ability to capitalize on the burgeoning opportunities within the sector. “With this strong foundation,” Soni remarked, “we are confident that we should be able to leverage the massive opportunity that is unfolding in the sector.”
The move reflects Hindustan Foods’ strategic vision to become a one-stop-shop for brands seeking to outsource production across various segments. By venturing into sports shoe manufacturing, the company aims to complement its existing capabilities in FMCG contract manufacturing, thereby positioning itself as a versatile player in the market.
Welcoming the addition of over 3,500 employees from SSIPL to the Hindustan Foods family, Sameer Kothari, Managing Director of Hindustan Foods, expressed optimism regarding the company’s trajectory. “On the back of the Baddi acquisition and this one,” Kothari stated, “we are confident that HFL should be able to meet the goal it had set for FY2025.”
The acquisition, slated to close in the coming months pending customary closing conditions, underscores Hindustan Foods’ commitment to strategic expansion and market leadership. As the company continues to explore opportunities in contract manufacturing, it remains committed to driving innovation and excellence across its diverse portfolio of offerings.
Conclusion
In conclusion, Hindustan Foods’ acquisition of SSIPL’s sports-shoe manufacturing operations marks a significant milestone in its journey towards diversification and market expansion. With a keen eye on emerging trends and consumer preferences, the company is poised to capitalize on the vast potential of the sports footwear segment. As Hindustan Foods charts its course towards sustainable growth and market leadership, the acquisition sets a precedent for strategic foresight and adaptability in an ever-evolving business landscape.
