"Hindustan Foods Diversifies Portfolio, Enters Shoe Manufacturing Through Acquisition"

Hindustan Foods Limited experienced a 1.94% rise in shares as the company ventured into the realm of sports shoe manufacturing with the acquisition of a unit in Kundli, Haryana. The strategic move is aimed at fortifying the company's foothold in the sports shoes segment. The acquisition, valued at approximately ₹30.72 crore, was executed through the company's wholly owned subsidiary, KNS Shoetech Private Limited, formalized via a Business Transfer Agreement.

This initiative follows Hindustan Foods' October announcement outlining plans to invest up to ₹100 crore in sports shoe manufacturing. The acquisition of 100% shareholding in KNS was a pivotal part of this strategic expansion into the sports footwear market.

Sameer Kothari, Managing Director of Hindustan Foods Limited, expressed the company's commitment to exploring new growth avenues. He stated, "We are committed to exploring new avenues for growth and have identified contract manufacturing of sports shoes as an exciting area to be in." This move signifies the company's proactive approach to diversification and aligns with its broader strategy of tapping into emerging markets within the consumer goods sector.

HBL