FMCG contract and private label brand manufacturer Hindustan Foods Ltd (HFL) on Thursday said the company is acquiring Reckitt Benckiser Healthcare India Private Ltd's pharmaceutical manufacturing facility in Baddi for Rs 156 crore. The acquisition will further expand Hindustan Foods Ltd's healthcare and wellness division. The manufacturing facility is located in Sandholi village of Baddi in Himachal Pradesh, the company said in an exchange filing on December 15.
Upon completion, the acquisition will further enhance the company’s offerings in the OTC healthcare and wellness segment. The transfer of the pharmaceutical manufacturing facility is expected to be completed by H2 of the calendar year 2023.
The facility manufactures a vast variety of OTC health and wellness products and skin creams, including some of Reckitt's key products. It is a state‐of‐the‐art facility with modern equipment and machinery and at par with global standards and adheres to the US FDA and MHRA, Russia GMP norms.
All employees pertaining to the sale of business will be transferred to HFL as part of the acquisition with continuity of employment. Upon Completion, HFL would manufacture various products for Reckitt and its affiliates in India and abroad. The acquisition also provides HFL an opportunity to leverage idle capacity for better utilisation and incremental profits.
Sanjay Sehgal, President, Healthcare and Wellness, HFL said, "Baddi is India’s prime pharma manufacturing hub and this facility provides HFL cutting-edge manufacturing set up with multiple global and domestic certifications. Idle capacity can be deployed profitably to service new customers, and we are confident of scaling this business and delivering efficiently to our customers worldwide."
This project is the second acquisition under the OTC healthcare and wellness segment. Earlier, HFL had acquired shares of an entity having its manufacturing facility in Sriperumbudur, Tamil Nadu, and marked its entry into the OTC healthcare and wellness segment.
