Vikas Multicorp enters food protection, personal hygiene segment; to invest Rs 100 cr in 2 yrs

Vikas Multicorp said the demand of aluminium foil and tissue paper products in India has been growing at a fast pace and is expected to continue to grow in view of present per capita consumption is quite low.

Specialty chemicals firm Vikas Multicorp on Tuesday said it will enter the food protection and personal hygiene segment of the FMCG industry with an investment of approximately Rs 100 crore in two years. The company has "signed a definitive agreement for the acquisition of a portfolio of trademarks, comprising of popular and well established national brands," Vikas Multicorp said in a regulatory filing.

Without divulging details of the deal, the company said it has acquired trademarks of food packaging and tissue paper brands -- Homefoil, Chapati Wrap, Cleanwrap, and Mystique. Vikas Multicorp said with the acquisition of the brand portfolio, the company is initiating the process to identify and acquire an existing patent for manufacturing these items.

"In the interim, alternate arrangements are being made to produce these products through third-party contract manufacturing," the company added. Vikas Multicorp said the demand for aluminum foil and tissue paper products in India has been growing at a fast pace and is expected to continue to grow in view of present per capita consumption is quite low. "With the changing lifestyle, urbanization and increasing requirement of food packaging would be the key factors for sustaining the growing demand. Post COVID-19 certain changes are expected in consumer behavior which also impetus the pace further," the company added.