Hindustan Foods Limited, a fast-moving consumer goods (FMCG) company, announced plans on Oct 23 to invest up to Rs 100 crore to set up, acquire, and invest in sports shoe manufacturing. This strategic move represents a significant bet on India's thriving sports shoe market.

"The Indian sports shoes market has grown dramatically in recent years, owing to rising consumer awareness of fitness and sports, as well as a surge in demand for comfortable and fashionable sports footwear." In a regulatory filing, Hindustan Foods stated, "The sector has gained momentum as more Indians embrace an active and healthconscious lifestyle."

"This financial commitment underscores the company's dedication to becoming a significant player in the sports shoes manufacturing sector and contributing to the 'Make in India' initiative," according to the statement.

As a first step, the company has entered into a sales and purchase agreement (SPA) with its existing shareholder to acquire 100% of KNS Shoetech Private Limited's shareholding. According to the company, it has a factory in Kundli, Haryana, where it currently manufactures the entire portfolio of sports shoes and trainers.

Sameer Kothari, Managing Director of Hindustan Foods Limited, commented on the acquisition, saying, "We have been closely monitoring the steps taken by the Indian government to encourage sports shoe manufacturing in India." We are confident that the policies, combined with rising customer demand, will enable a robust manufacturing ecosystem, and we are attempting to leverage our expertise and experience in contract manufacturing to provide manufacturing solutions to Indian and global sports shoe brands."