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.”