Hindustan Foods to Acquire Beauty & Cosmetics Unit to Expand BPC Business

Hindustan Foods Limited has signed an agreement to acquire the business of Ultra Beauty Care Private Limited.

The deal will be completed through a slump sale on a going concern basis, subject to certain conditions. The company expects to complete the acquisition by Q1 FY27.

About the Acquired Business

The acquired unit is located in Aurangabad, Maharashtra, and is involved in contract manufacturing of:

• Ayurvedic and herbal products
• Beauty and cosmetic products

It supplies products to large FMCG companies as well as direct-to-consumer (D2C) brands.

Strategic Expansion in Beauty Segment

This acquisition will help Hindustan Foods strengthen its presence in the fast-growing beauty and personal care (BPC) segment.

The company aims to:

• Serve brands needing small and flexible production runs
• Support new product launches for both existing and emerging brands
• Expand partnerships with D2C players

Export and Infrastructure Advantage

The plant’s location near Mumbai Port will help the company explore export opportunities in beauty and personal care products.

The facility is built on 6 acres of land, and the company plans to:

• Use available space to set up a beverage manufacturing unit
• Improve overall efficiency and utilization

Management Commentary

The management stated that this acquisition supports long-term growth plans and helps the company offer better solutions to customers, especially in fast-changing product segments.

The company also highlighted its ability to create value by using synergies across different business verticals.

About Hindustan Foods

Founded in 1984, Hindustan Foods provides contract manufacturing services to FMCG companies across various categories, including:

• Food & beverages
• Home and personal care
• Wellness and OTC products
• Footwear and insecticides

The company has grown into a diversified manufacturing platform serving leading brands.

Read More: Centre Links Additional LPG Allocation to States Promoting Shift to Piped Gas.

Hindustan Foods Share Price Movement

Hindustan Foods share price (NSE: HNDFDS) closed at ₹466.80, down ₹15.35 or 3.18% on March 23. The stock opened at ₹478.00 and touched an intraday high of ₹478.00 and a low of ₹461.60. The company has a market capitalisation of around ₹5,580 crore and is trading at a P/E ratio of 40.61. The stock has no current dividend payout. Over the past year, it has recorded a 52-week high of ₹608.00 and a low of ₹421.50.

Conclusion

Hindustan Foods’ acquisition of a beauty and cosmetics manufacturing unit marks a key step in expanding its BPC segment and export capabilities, supporting long-term growth and efficiency.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.