The market was rife that Hanung Toys and Textiles Ltd, based in Noida near New Delhi, was planning to acquire three overseas companies through deals worth $30 million.
MUMBAI: The market was rife on Tuesday that Hanung Toys and Textiles Ltd, based in Noida near New Delhi, was planning to acquire three overseas companies through deals worth $30 million.
Hanung will buy two US-based home furnishings companies and a toymaker in Nanjing (China) in the next two to three months, chairman and managing director Ashok Bansal told DNA Money over the telephone.
“The Nanjing company has a capacity to manufacture 10 million toy pieces per annum. We currently manufacture about 20 million toy pieces at our Noida facility, and this acquisition will give us more leeway to grow in the toy business,” said Bansal.
Hanung currently holds about 30% market share in the approximately Rs 250 crore organised toy market in India.
This Chinese company is largely into exports to the US, European Union, amongst others, and Hanung hopes to capitalise on this aspect as well.
Bansal, however, declined to reveal more on the two US companies, apart from stating that they would bring in significant additional revenues and improve margins.
All the three deals will be funded through a mix of debt and internal accruals, it was
earlier reported by Reuters.
Hanung is growing at 35-40% annually and expects to cross Rs 1,000 crore turnover
mark in the next two years. It currently clocks a turnover of Rs 507 crore.
The company entered the textiles domain in 2003 through the acquisition of promoter companies Hanung Furnishings Pvt Ltd and Hanung Processors Pvt Ltd.
Its textile products include cushion covers, curtains, sleeping bags, duvet covers, floor rags etc, which are marketed under the brand name Splash.
The company recently commissioned its Roorkee (Uttaranchal) plant, which gives it a total processing capacity of 41 million metres of fabrics annually.
g_priyanka@dnaindia.net
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