Hindustan Foods Limited (HFL), a Vanity Case Group company and one of India’s leading contract manufacturers, has announced the acquisition of a manufacturing facility from MMG Enterprises Private Limited. The facility, located in the Food Processing Park at Makundaprasad, Khurda, Odisha, specializes in manufacturing, processing, and packaging bottled water.
The acquisition was finalized through a Business Transfer Agreement (BTA) executed on January 3, 2025, between HFL Multiproducts Private Limited (HMPL), a wholly-owned subsidiary of Hindustan Foods Limited, and MMG Enterprises along with its promoter. The transaction, valued at ₹29.5 crore, was structured as a slump sale on a going concern basis.
This acquisition aligns with Hindustan Foods’ strategy to diversify into bottled water manufacturing and enhance its footprint in the contract manufacturing space. The company plans to invest an additional ₹35 crore in the facility, including working capital.
The acquired facility boasts capabilities in advanced processing and packaging of bottled water and meets IP68 and IP69 ratings for water resistance. Hindustan Foods aims to leverage this acquisition to tap into the growing demand for high-quality bottled water products in India and globally.
According to the regulatory filing, the transfer of ownership will be subject to the fulfillment of customary conditions precedent and the necessary regulatory approvals. Hindustan Foods expects the acquisition to be completed in the first quarter of FY 2025-26.
The acquisition will be executed for a cash consideration of ₹29.5 crore, with customary adjustments as outlined in the BTA. The deal does not involve any related-party transactions, and Hindustan Foods’ promoters or promoter group have no interest in MMG Enterprises.
