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Hindustan Foods (HFL) has executed Business Transfer Agreement (BTA) for acquisition of Reckitt Benckiser Health India's (Reckitt) manufacturing facility in Village Sandholi, Baddi, Himachal Pradesh (Undertaking) as a move to further expand its Health Care & Wellness division. Subject to fulfilment of the conditions precedent set out under BTA, the transfer of the Undertaking is expected to be completed by H2 of calendar year 2023.
Upon completion, this acquisition will further enhance the company's offerings in the OTC Healthcare and Wellness segment.
The manufacturing facility is into manufacturing of vast variety of OTC health and wellness products and skin creams including some of Reckittfs key products. It is a state-of-the art facility with modern equipment and machinery and at par with global standards and adheres to the US FDA & MHRA, Russia GMP norms.
All employees pertaining to the Sale Business as defined under BTA will be transferred to HFL as part of the acquisition with continuity of employment. Upon Completion, HFL would manufacture various products for Reckitt and its affiliates in India and abroad. The acquisition also provides HFL an opportunity to leverage idle capacity for better utilization and incremental profits
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