DOMS acquires 51.77% stake in Uniclan Healthcare

DOMS Industries (DOMS), a stationery and art material brand, has announced the completion of its strategic investment to acquire a 51.77% equity stake in Uniclan Healthcare, a growing producer of baby diapers, wipes, and other baby hygiene products. The acquisition makes Uniclan a subsidiary of 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 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. Uniclan has a state-of-the-art manufacturing facility in Jaipur, Rajasthan with an installed capacity approximately 400 million pull- up pant style baby diapers per annum which are primarily sold under its flagship brand "Wowper".

Uniclan's keen focus on advanced R&D and adherence to international quality standards has resulted in growing market acceptance and reputation for its products. Uniclan is now focussed on expanding its market reach by expanding its distribution network.

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. It's 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 for long term value creation. We believe that with our focus on product quality and innovation, and leveraging 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.”

For DOMS, this acquisition presents several significant advantages. By entering the diaper market, which is valued at approximately $2 billion and growing at a compound annual growth rate (CAGR) of approximately 16%, DOMS significantly expands its addressable target market.

In the short term, Uniclan will benefit from DOMS' extensive distribution network, including its strong relationships with super stockists and distributors that shall allow 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' own products, thus amplifying the growth potential of both companies.

CA Nirav Khandhediya acted as an advisor for this transaction.