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Mumbai: Motilal Oswal Alternate Investment Advisors Private Limited (“MO Alts” or “MO Alternates”) has invested INR 4,000 million for a minority stake in Pan Healthcare Private Limited (“Pan Health” or “Company”), a Rajkot based manufacturer of hygiene products including baby diapers, adult diapers, sanitary napkins, feminine hygiene products, etc. Pan Health sells baby diapers under the ‘Little Angel’ brand, adult incontinence products under the ‘Liberty’ brand, and sanitary napkins and feminine hygiene products under the ‘Everteen’ brand. Company also sells personal care products under brands such as ‘Neud’, ‘Mansure’ and ‘Naturesure’.

Established in 2016, Pan Health is one of the key domestic players in the hygiene products segment in the country. The company has a pan-India distribution presence through a network of offline (350,000+ retail touch points) and online (third party e-commerce) channels, which is serviced through a state of the art manufacturing facility located at Rajkot. The company is promoted by the Pan Group, a leading business house with diversified interests across varied segments including cement, cotton, steel, agri-trading, etc. Orbit Financial Capital acted as the exclusive financial advisor to Pan Health on the transaction.

Mr. Chirag Pan, Promoter of Pan Health said, “Our singular focus on offering the best quality product at competitive price points has enabled us to quickly establish ourselves as one of the top domestic brands in a highly competitive hygiene products category. We are very excited to partner with MO Alts and look forward to leverage their experience of backing category leaders in the consumer segment to accelerate our growth plans. The funds raised will be utilized for investing in the brand, ramping up the distribution infrastructure, and building a robust organization to help us drive the next phase of growth.”

Mr. Vijay Dhanuka, Director and Head of Consumer sector at MO Alts commented, “The Indian hygiene products segment is significantly underpenetrated as reflected by per capita diaper consumption of <60 units vs. ~1,000 in US and ~400 in China. The market has also been dominated historically by MNC brands with no large Indian brand so far. We are reasonably confident that with its sharp focus on manufacturing excellence, and having delivered on its vision of creating a best-in-class manufacturing plant that surpasses even international setups, Pan Health will be able to address the above issues and create a huge impact in the personal hygiene space. The Company’s strategy of creating large scale operations, be it in manufacturing or in offline distribution through large feet-on-street workforce, will allow them to offer high quality products at competitive prices not just across tier II/ III cities but even rural areas. This perfectly positions Pan Health to create a brand that embodies the dictum ‘Bharat ke products, Bharat ke liye’.

This investment underscores MO Alts’ thesis of investing behind secular trends of underpenetrated categories, large distribution plays, and Indian manufacturing excellence. It also marks our ability to identify and back high quality businesses and promoters that emerge from tier II/ III cities and create large economic outcomes. Given that Pan Health business fit squarely on all the above dimensions, it prompted us to back the Company with one of our largest cheques for a consumer business so far.