DOMS Industries to Acquire Major Stake in Uniclan Healthcare Private Limited

DOMS Industries Limited has announced a significant strategic move with its decision to acquire a 51.77% stake in Uniclan Healthcare Private Limited. The investment, valued at up to ₹55.5 crore, involves DOMS purchasing 7,116,080 equity shares of Uniclan, each priced at ₹10.

This acquisition, which requires regulatory approvals and the fulfilment of certain conditions, is expected to position DOMS as a key player in the healthcare product market, particularly in baby care products.

Uniclan Healthcare, based in Mumbai, is renowned for its manufacturing and marketing of baby diapers, wipes, and other hygiene products. Its state-of-the-art facility in Jaipur spans over 6,500 square meters, with a built-up area of 4,500 square meters. The factory boasts an impressive installed capacity of close to 400 million diapers, and Uniclan’s flagship brand, ‘Wowper’, is a recognised name in the Indian market.

For the financial year 2023-24, Uniclan reported unaudited revenues of ₹144.26 crore. This was a slight decrease from the audited revenue of ₹155.36 crore for the previous fiscal year, 2022-23. Despite the minor dip in revenue, the strategic acquisition is expected to enhance DOMS Industries’ market footprint and align with its objective to diversify its product portfolio, particularly targeting the growing market for children and young adults.

The acquisition marks DOMS Industries’ entry into a new product segment, expanding beyond its traditional operations. By integrating Uniclan’s established presence in the baby care sector, DOMS aims to tap into a broader target market and leverage Uniclan’s existing infrastructure and brand recognition. The deal includes the execution of several definitive agreements, such as the Share Purchase Agreement, Share Subscription Agreement, and Shareholders Agreement, which will formalise the transaction.

The proposed transaction is slated for completion by September 30, 2024. Once finalised, Uniclan will operate as a subsidiary of DOMS Industries, significantly bolstering the company’s portfolio and market reach in the hygiene product segment. This move is part of DOMS’ strategic initiative to broaden its product offerings and capture a larger share of the market associated with young consumers.

Meanwhile, DOMS Industries reported its financial results for Q1 FY25, reflecting a robust performance. The company’s revenue from operations for the quarter ended June 2024 surged by 17.3% to ₹445 crore compared to Q1 FY24 and increased by 10.2% from the previous quarter. Notably, the Profit After Tax (PAT) for Q1 FY25 saw a growth of 49.5% to ₹54.3 crore compared to the same quarter last year and a 15.7% increase from Q4 FY24.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.