Stationery and art material maker DOMS Industries Ltd on Monday said it has acquired a 51.77 per cent equity stake in Uniclan Healthcare Pvt Ltd, a producer of baby diapers, wipes, and hygiene products for a total consideration of Rs 54.88 crore.
As a part of the transaction, the company has acquired 71,16,080 equity shares for a total consideration of Rs 54.88 crore, of which Rs 28.88 crore shall be primary infusion, which will be utilised towards capacity expansion, debt repayment and funding working capital requirements by Uniclan, DOMS Industries (DOMS) said in a statement.
DOMS Managing Director Santosh Raveshia said with the investment in Uniclan, the company is entering the baby hygiene segment.
Advertisement
"This acquisition is a crucial step in our long-term strategy to explore new sectors that enhance our business portfolio and resonate well with our targeted focus on children in their growing years," he added.
The acquisition enables DOMS to expand its product range and diversify its product portfolio in line with its overall growth strategy to cater to a broader market, the company said.
Uniclan has a manufacturing facility in Jaipur, Rajasthan with an installed capacity of approximately 400 million pull-up pant style baby diapers per annum which are primarily sold under its flagship brand 'Wowper', it added.
"By leveraging DOMS consumer knowledge and market expertise, we are confident that we can further strengthen our brand and continue to deliver exceptional products to our customers," Uniclan Healthcare Founder and Director, Vatsal Desai said.
Just one email a week