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Hindustan Foods plans to enter into contract manufacturing of sports shoes

Oct 23, 2023

By: BlinkX Research Team

Hindustan Foods Limited, a leading contract manufacturer in the FMCG and consumer goods sector has announced plans to invest up to ₹100cr to set up, acquire and invest in the area of sports shoes manufacturing, the company said on Monday.

 

This strategic move marks a significant bet on the thriving sports shoes space in India. 

 

The Indian sports shoes market has witnessed remarkable growth in recent years, driven by increasing consumer awareness about fitness and sports, along with a surge in demand for comfortable and fashionable sports footwear. The sector has gained momentum as more Indians embrace an active and health‐conscious lifestyle; the company added.

 

As a first step, the company has entered into an SPA to acquire 100% of the shareholding of KNS Shoetech Private Limited from its existing shareholder. 

The company has a factory located in Kundli, Haryana and is currently manufacturing the entire portfolio of sports shoes and sneakers.   

 

Hindustan Foods Limited's Managing Director, Sameer Kothari, commented on the acquisition, saying, "We have been closely monitoring the steps taken by the Indian Government to encourage sports shoes manufacturing in India. We are convinced that the policies along with the growing customer demand will enable a robust manufacturing eco‐system and are trying to leverage our expertise and experience in contract manufacturing in being able to offer manufacturing solutions to Indian and global sports shoe brands.

The acquisition of KNS Shoetech allows to start our journey in this industry and we are looking forward to strengthening our position in the future by additional capex and expansion."

At around 1:56 PM, shares of Hindustan Foods were trading at ₹530.25 per share, lower by 1.6% on the BSE.