Reckitt Benckiser Health India to sell Baddi facility to Hindustan Foods
The manufacturing facility is into manufacturing of vast variety of OTC health and wellness products and skin creams including some of Reckitt's key products.
Mumbai: Hindustan Foods Limited ("HFL") has executed Business Transfer Agreement (BTA) for acquisition of Reckitt Benckiser Health India Private Limited's manufacturing facility in Village Sandholi, Baddi, Himachal Pradesh ("Undertaking") as a move to further expand its Health Care & Wellness division.
Subject to fulfilment of the conditions precedent set out under BTA, the transfer of the Undertaking is expected to be completed by H2 of calendar year 2023. Upon completion, this acquisition will further enhance the company's offerings in the OTC Healthcare and Wellness segment.
The manufacturing facility is into manufacturing of 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 & MHRA, Russia GMP norms. All employees pertaining to the Sale Business as defined under BTA 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 utilization and incremental profits.
Sanjay Sehgal, President, Healthcare & Wellness Division, Hindustan Foods Limited said, "We are happy with this acquisition that enables us to further expand our offerings in the OTC Healthcare and Wellness segment, as a contract manufacturer. Baddi is India's prime pharma manufacturing hub and this facility provides HFL a cutting-edge manufacturing setup 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 entity having its manufacturing facility in Sriperumbudur, Tamil Nadu, and marked its entry in the OTC Healthcare and Wellness Segment.
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