DOMS Industries (DOMS), a stationery and art material brand, has acquired a 51.77% equity stake in Uniclan Healthcare (Uniclan), a producer of baby diapers, wipes, and other baby hygiene products. The acquisition places Uniclan as a subsidiary under DOMS.
As a part of the transaction, the company has acquired 71,16,080 equity shares for a total consideration of Rs 54.88 crore, of which Rs 28.88 crore shall be a primary infusion, which will be utilised towards capacity expansion, debt repayment, and funding working capital requirements by Uniclan.
The acquisition enables DOMS to expand its product range and diversify its product portfolio in line with its overall growth strategy to cater to a broader market, as per the company.
By entering the diaper market, valued at around $2 billion with a compound annual growth rate (CAGR) of approximately 16%, DOMS expands its addressable target market. In the short term, Uniclan will benefit from DOMS’ distribution network, including its relationships with stockists and distributors, allowing Uniclan to expand its market reach. Over the long term, this partnership opens the possibility for Uniclan’s network to serve as a parallel distribution channel for DOMS’ products, thus amplifying the growth potential of both companies.
CA Nirav Khandhediya acted as an advisor for this transaction.
Uniclan has a state-of-the-art manufacturing facility in Jaipur, Rajasthan with an installed capacity of approximately 400 million pull-up pant-style baby diapers per annum, primarily sold under its flagship brand ‘Wowper.’ Uniclan is now focused on expanding its market reach by expanding its distribution network.
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Commenting on the acquisition, Santosh Raveshia, Managing Director, DOMS Industries, said, “We are pleased to announce our strategic entry into the baby hygiene segment with this investment in Uniclan. Its well-accepted product portfolio, growing market presence, and forward-thinking approach align perfectly with our vision for growth and diversification. This acquisition is a crucial step in our long-term strategy to explore new sectors that enhance our business portfolio and resonate well with our targeted focus on children in their growing years. While we remain focused on driving innovation and delivering value across our core business segments, the expansion is expected to boost our distribution network in the long term, opening new avenues for sales and contributing to our overall success. We are eager to forge a successful partnership with Uniclan and anticipate numerous opportunities for innovation and mutual success.”
Vatsal Desai, Founder, and Director, Uniclan Healthcare, added “We are excited to partner with DOMS, a company that shares our commitment to long-term value creation. We believe that with our focus on product quality and innovation, and leveraging the DOMS distribution network in India and globally, we shall be able to elevate Uniclan’s growth trajectory and expand our reach. By leveraging DOMS consumer knowledge and market expertise, we are confident that we can further strengthen our brand and continue to deliver exceptional products to our customers. Together, we look forward to setting new benchmarks in the industry and driving forward our shared vision for the future.”
