The transfer of the said manufacturing facility is expected to be completed by H2 of calendar year 2023, the company added.

"Upon completion, this acquisition will further enhance the company's offerings in the OTC Healthcare and Wellness segment,” Hindustan Foods said in a statement.

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 facility with modern equipment and machinery and at par with global standards and adheres to the US FDA & MHRA, Russia GMP norms. Upon completion, HFL would manufacture various products for Reckitt and its affiliates in India and abroad.

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.

Sanjay Sehgal, President, Healthcare & Wellness Division, Hindustan Foods, 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 set up 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."

Hindustan Foods offers dedicated and shared manufacturing services to top FMCG corporates In 2013, Vanity Case Group bought a controlling stake in Hindustan Foods and since then the company has diversified across various FMCG categories with manufacturing competencies in food & beverages, home care, fabric care, beauty & personal care, health care & wellness, leather & sports footwear and pest control. The Vanity Case Group was founded in the year 2001 and is one of the largest and most diversified FMCG contract manufacturers in India.

The company's consolidated net profit rose 73.19% to Rs 18.93 crore on a 40.50% increase in sales to Rs 661.79 crore in Q2 FY23 over Q2 FY22.

The scrip advanced 3.23% to end at Rs 706 on the BSE today.