 "Hindustan Foods' facility in Goa")
Fast-moving consumer goods (FMCG) firm Hindustan Foods Limited on Monday announced its plans to invest up to Rs 100 crore to set up, acquire and invest in the area of sports shoe manufacturing. 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," Hindustan Foods said in a regulatory filing.
"This financial commitment underscores the company's dedication to becoming a significant player in the sports shoes manufacturing sector and contributing to the 'Make in India' initiative," it said.
As a first step, the company has entered into a sales and purchase agreement (SPA) to acquire 100 per cent 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, it added.
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 us to start our journey in this industry and we are looking forward to strengthening our position in the future by additional capex and expansion," said Kothari.
