Nobel Hygiene, India’s largest private manufacturer of disposable hygiene products, has raised funds from Quadria Capital. With this funding, Quadria Capital now becomes the largest minority shareholder in the company.
Sixth Sense Ventures, a domestic consumer-centric venture fund, will invest alongside Quadria. PE investors CLSA Capital Partners and Access India fund and its co-investors have exited their investment.
Nobel Hygiene claims to have grown by over five-fold in the last five years maintaining a 35 percent CAGR. The brand has closed FY21 with a revenue of close to Rs 600 crore. It is targeting revenue upwards of Rs 800 cr in FY22 and around Rs 1,000 crore in FY23.
Kamal Johari, Managing Director and CEO, Nobel Hygiene, said, “We are delighted to begin this new phase in Nobel’s journey. While the funds come just in time to help us further accelerate our growth plan, we continue to grow on the strength of our own P&L with minimal primary money. With the per capita income of Indians climbing towards $3,000, we expect a substantial jump in discretionary spending by Indians, which will result in substantial growth in the hygiene market also. With our current expansion in Halol (Gujarat), in conjunction with a slew of hires made in our leadership team, we are rightly placed to take advantage of this market expansion.”
Founded by Kamal Johari in 2000, Noble Hygiene offers global quality hygiene products customised according to Indian body type. The brand was India’s first maker of adult diapers and today has more than 50 percent of the market share in the adult disposable hygiene space. It has expanded its portfolio to also cater to baby and feminine hygiene products in the last two decades.
Nobel Hygiene’s products are available on both offline and online platforms and are available across 200,000 retail outlets.
Dr. Amit Varma, Managing Partner and Co-Founder, Quadria Capital, stated, “India significantly lags behind its peers in the usage and adoption of personal and disposable hygiene products, a stark difference which was further accentuated with the devastating impact of the pandemic. Nobel Hygiene has done a tremendous job in building a platform that has been at the forefront of providing reliable, high quality, and affordable disposable hygiene products over the last 20 years. Quadria is very excited to partner with Nobel Hygiene in its journey of increasing the accessibility of disposable hygiene products across the country.”
Nikhil Vora, Founder & CEO of Sixth Sense Ventures, added, “Nobel fits perfectly well into the Sixth Sense thesis of betting on first-generation founders, pioneering products for the new age consumer, within the US$860m+ diaper segment. The Indian diaper industry offers a strong potential with penetration in low single-digit and the product promising frequency and a long consumer lifecycle (large and sticky category). Nobel has maintained its dominance in the adult diaper segment (~50 percent market share for ‘Friends’), and with domestic brands gaining preference, we believe this leadership will be further strengthened. Within the baby diaper segment, we see strong potential for Nobel’s brands given the access to distribution. We see Nobel as a perfect opportunity to play the hygiene segment in India. I am personally elated to be part of the Nobel hygiene growth story.”
In a strategic move reinforcing its commitment to Madhya Pradesh's economic landscape, Hindustan Coca-Cola Beverages (HCCB), a prominent FMCG player in India, has disclosed a Rs 350 crore investment in the state. This announcement, made during a meeting between the Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, and a senior HCCB delegation, propels the company's cumulative investment in the state to over Rs 660 crore.
The capital injection will fuel the establishment of two cutting-edge manufacturing lines at HCCB's Rajgarh factory, dedicated to producing Affordable Small Sparkling Packs (ASSP) and Juice Tetra Packs. Beyond expanding manufacturing capabilities, this move is poised to make a substantial contribution to the state's economy. With a robust network of 149 distributors and 127,080 retailers, HCCB plays a pivotal role in Madhya Pradesh's retail sector, distributing approximately 10 million cases across 29 districts.
In reciprocation, the Madhya Pradesh Government has committed comprehensive support to expedite HCCB's procurement of necessary permissions, approvals, and clearances, aligning with the state's policies and regulations.
Himanshu Priyadarshi, Chief Public Affairs, Communications, and Sustainability Officer at HCCB, stated, “This investment is a significant step in our journey with Madhya Pradesh - a state that is poised for growth and development. We see this as an opportunity to deepen our commitment and align our growth with the state’s vision. This is more than an expansion of our business operations; it is about reinforcing our roots in a state that is key to our market strategy and a hub for innovation. We envisage this project as a catalyst not only for regional economic growth but also as a conduit for nurturing local talent, thereby contributing to the socio-economic progress of Madhya Pradesh.”
Having invested over Rs 311 crore in Madhya Pradesh since 2000, including recent expansions in 2022 and 2023, HCCB has consistently demonstrated its commitment to enhancing production capabilities and supporting the local economy. This latest financial commitment not only cements its industrial presence in the state but also aligns with HCCB's dedication to delivering innovative and high-quality products to consumers in Madhya Pradesh.
HCCB's engagement in Madhya Pradesh transcends business investments, extending to Corporate Social Responsibility (CSR) initiatives. These projects focus on water rejuvenation, skill development, and sustainable agriculture. Notably, the initiatives have impacted 1200 youths in sales and marketing training, 1500 women in digital and financial literacy, and over 100 farmers in adopting sustainable agricultural practices. Additionally, HCCB has facilitated the installation of water ATMs and Smartboards, contributing to community resources.
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