Hindustan Foods Ltd to Invest Rs. 100 Crores in Sports Shoe Manufacturing

Fast-moving consumer goods (FMCG) company, Hindustan Foods Limited, unveiled its strategic plans on Monday to invest up to Rs. 100 crore in the establishment, acquisition, and development of sports shoe manufacturing. This bold move signifies a substantial bet on the flourishing sports footwear industry in India.

The Indian sports shoe market has experienced remarkable growth in recent years, driven by heightened consumer awareness of fitness and sports, coupled with a surge in the demand for comfortable and stylish sports footwear. The sector has gained significant momentum as an increasing number of Indians embrace an active and health-conscious lifestyle, as stated in a regulatory filing by Hindustan Foods.

"This financial commitment underscores the company's dedication to becoming a significant player in the sports shoe manufacturing sector and contributing to the 'Make in India' initiative," the company emphasized.

To kickstart this venture, Hindustan Foods has taken the initial step by entering into a sales and purchase agreement (SPA) to acquire 100% of the shareholding of KNS Shoetech Private Limited from its current shareholder. KNS Shoetech boasts a factory located in Kundli, Haryana, and is presently engaged in the production of an extensive range of sports shoes and sneakers.

Sameer Kothari, the Managing Director of Hindustan Foods Limited, expressed his perspective on the acquisition, stating, "We have been closely monitoring the steps taken by the Indian government to encourage sports shoe manufacturing in India. We are convinced that the policies, along with the growing customer demand, will enable a robust manufacturing ecosystem, and we are striving to leverage our expertise and experience in contract manufacturing to offer manufacturing solutions to Indian and global sports shoe brands."

Kothari further added, "The acquisition of KNS Shoetech allows us to embark on this journey in the industry, and we are eager to bolster our position in the future through additional capital expenditure and expansion." This strategic move by Hindustan Foods positions them as a key player in the promising sports shoe manufacturing sector and reflects their commitment to shaping the future of Indian sports footwear.

BS