Hindustan Foods acquires sports shoe unit in Haryana to expand market reach
Hindustan Foods Limited, a prominent player in the FMCG and consumer goods sector, has announced a significant acquisition to strengthen its sports shoe manufacturing business. The company, through its wholly-owned subsidiary KNS Shoetech Private Limited (KNS), has acquired a sports shoe manufacturing unit in Kundli, Haryana. This move, valued at approximately Rs. 30.72 crores, marks a pivotal step in the company’s expansion within the sports shoes segment.
Investment in Sports Shoe Manufacturing
In line with the company’s announcement in October to invest up to Rs. 100 crores in sports shoe manufacturing, Hindustan Foods had acquired 100% shareholding in KNS. This acquisition underscores the company’s commitment to fortifying its presence in the booming sports shoes market.
Hindustan Foods expands in sports shoe manufacturing sector with acquisition of KNS Shoetech
Growth of the Indian Sports Shoe Market
The Indian sports shoes market has seen substantial growth, driven by increased consumer awareness of fitness and sports and demand for stylish, comfortable sports footwear. Brands like Puma, Decathlon, Adidas, Skechers, and Asics have shown remarkable growth since 2021, as per a recent report in a leading newspaper.
Comments from Hindustan Foods’ Leadership
Himmaj Soni, Head of the Sports Shoes Division at Hindustan Foods Limited, stated, “The acquisition of KNS Shoetech in October provided us with a foothold in a fast-growing industry, and this latest acquisition will propel us further.” He also mentioned plans for a brownfield investment in the company’s existing factory in Chennai to establish shoe manufacturing facilities, aiming to leverage export opportunities.
Sameer Kothari, Managing Director of Hindustan Foods Limited, added that the company is committed to exploring new growth avenues, with sports shoe contract manufacturing being an exciting area. The company continues to assess additional strategic acquisitions and investments in related industries, solidifying its stature in the Indian FMCG and consumer goods sector.
The acquisition by Hindustan Foods Limited represents a significant step in expanding the company’s manufacturing capabilities and market reach. It positions the company to play a crucial role in the rapidly evolving sports shoe industry, both domestically and internationally.