In a move to consolidate its business, FMCG company Hindustan Foods Ltd. has merged the Contract Manufacturing undertaking (Coimbatore) of its common control entity Avalon Cosmetic Pvt. Ltd and amalgamated its associate ATC Beverages Pvt. Ltd.

Hindustan Foods Limited (HFL) is a BSE listed FMCG company engaged in Contract Manufacturing of a diverse range of products including cereals, energy drinks, shampoos and detergents to even leather shoes and pesticides. Clientele includes Hindustan Unilever, Reckitt & Benckiser, PepsiCo, Steve Madden, Flipkart, Marico and more. It was incorporated in 1984 as a JV between Glaxo India Ltd. and the Dempo Group. In 2013 the Vanity Case Group and the Kothari family acquired the controlling stake and run the company.

Initially, HFL was only a one client-one brand company. Over the years its business had declined to the point where most of its net worth was wiped off. After the Vanity Case Group stepped in 2013, with funding and new management it was able to reverse its misfortunes.

The company is headquartered in Mumbai and as a growth strategy has inorganically increased its geographical footprint across 6 locations in India by acquiring manufacturing factories making a diverse range of products. It seems that this scheme is alignment with this strategy.

Avalon Cosmetics Pvt. Ltd. (Avalon), an unlisted FMCG company headquartered in Mumbai having manufacturing sites across 6 locations, is engaged in contract manufacturing of cosmetics like lotion, shampoo, etc. and food products. It was incorporated in 1981 and is owned by the Kothari Family (77%) and Vanity Case India Pvt. Ltd. (23%), who are also the promoters of HFL.

Clientele includes the likes of HUL, Amway Global, Godrej, Emami, Reckitt Benckiser and more.

ATC Beverages Pvt. Ltd. (ATC), an unlisted FMCG company headquartered and having its manufacturing unit in Mysore, is engaged in contract manufacturing of soft drinks and non-alcoholic beverages. It was incorporated in 2004 and is mainly owned by Maxwell Asgari and family (52%) and Hindustan Foods Ltd. (48%).

The company has clients like PepsiCo and O’cean beverages. ATC is mainly involved in bottling and packaging of cold beverages.


Through the scheme HFL is acquiring the following:

  • Coimbatore undertaking of Avalon Cosmetics which is into manufacturing Malt/wheat-based foods and energy drinks. Amalgamating ATC beverages. ATC Beverages manufactures energy drinks and non-alcoholic beverages like fruit juices.

Both the transactions are all equity deals.


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