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A Motilal Oswal arm on Tuesday announced a Rs 400 crore investment in Rajkot-based hygiene products maker Pan Healthcare for a minority stake.
The company established in 2016, which manufactures diapers and sanitary napkins, will use the funds for brand building and ramping up distribution, its promoter Chirag Pan said in a statement.
Funds managed by or advised by Motilal Oswal Alternate Investment Advisors (MO Alts) have invested in the company of Pan Group, which also has interest in cement, cotton, steel and agri-trading, the statement said.
Vijay Dhanuka, head of consumer sector at MO Alts said the hygiene products segment in India is significantly underpenetrated as reflected by per capita diaper consumption of less than 60 units as against 1,000 in the US and 400 in China, and the market is dominated by multinational companies.
The company’s strategy of creating large-scale operations, be it in manufacturing or in offline distribution through large feet-on-street workforce, will allow them to offer high quality products at competitive prices not just across tier II/ III cities but even in rural areas, he added.
MO Alts has been investing in underpenetrated categories, large distribution plays, and identifying businesses and promoters that emerge from tier II/III cities, the statement said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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