Back News / Press Release: Sixth Sense (SSIO-II) invests in Hindustan Foods once again, further strengthening its confidence in the company
Press Release: Sixth Sense (SSIO-II) invests in Hindustan Foods once again, further strengthening its confidence in the company
February 27, 2019Mumbai, 27th February, 2019
Sixth Sense Ventures’ second fund, SSIO II has committed to invest around Rs.30Cr. (subject to regulatory and shareholders approvals) in Hindustan Foods Limited, leading to its stake to be around 17% (along with SSIO-I).
Sixth Sense’s investment further bolsters its philosophy of backing first-generation entrepreneurs operating in large consumer categories. Sixth Sense had first invested in Hindustan Foods in December 2016 when the company’s FY17 revenues were at Rs.37Cr. HFL has since grown manifold with a clear visibility of hitting the Rs.1,000Cr.+ revenue milestone by FY20.
Sixth Sense believes that manufacturing will be extensively outsourced by FMCG companies, while they focus solely on brand innovation and distribution. Hindustan Foods, amongst the very few relevant leading contract manufacturers, is perfectly geared to capture this burgeoning demand. Through its unparalleled and customised manufacturing solutions delivering superior efficiency, HFL has already managed to be a significant partner with Unilever, Reckitt Benckiser, GSK, Danone, Marico, U.S. Polo, Steve Madden and others to manufacture Home Care, Personal Care, Foods, Beverages etc for them.
“With a strong vision for the future, a partner with a thorough understanding of consumer markets is essential to fund future growth (organic and inorganic), and Sixth Sense is just that. We are thrilled to have Nikhil Vora repose trust in us once again and sharing our vision”, said Sameer Kothari, MD of Hindustan Foods.
Nikhil Vora, Founder and CEO of Sixth Sense says, “Our partnership with Sameer and Hindustan Foods started almost 3 years back. I am elated to see the journey and path that HFL has set for itself. Our belief that Consumer Manufacturing, a USD 35B space, will over the coming years become a Consumer Outsourcing opportunity of USD 7B+, seems to be a reality. HFL, to us will be amongst the most relevant players in this space, with the capability to become India’s largest contract manufacturer. I will be surprised if HFL does not become a USD 1B company over the next 5 years! Extremely pleased to continue to be part of HFL and wish Sameer and team the very best as the company becomes the premier consumer contracting player in our country”.