FirstCry parent Brainbees to acquire KA Hygiene for Rs 58 crore

Pune-based Brainbees Solutions, the parent of FirstCry, has announced the acquisition of K.A. Enterprises (Hygiene) Private Limited through its subsidiary Swara Baby Products Private Limited, marking a deeper push into the hygiene and disposable products segment.

In a regulatory filing dated December 23, Brainbees said Swara Baby has entered into a share subscription agreement and a share purchase agreement, both dated December 22, 2025, to acquire 100% equity ownership in KA Hygiene from its existing shareholders.

The transaction will be executed through a share swap, with Swara Baby issuing 38,49,572 equity shares to the sellers. There is no cash consideration involved.

The acquisition has been valued at Rs 57.74 crore. Following the issuance of shares, Brainbees’ shareholding in Swara Baby will reduce from 87.29% to 75.92%. Post-completion, KA Hygiene will become a wholly owned subsidiary of Swara Baby and a step-down subsidiary of Brainbees, with the listed parent exercising indirect control of 75.92%.

KA Hygiene was incorporated on July 31, 2019, and is engaged in the manufacturing and trading of hygiene products. Prior to the acquisition agreement, KA Hygiene acquired the entire business of K.A. Enterprises, a commonly controlled entity operating in the same segment.

On a consolidated basis, including the acquired business, the hygiene operations reported revenue of Rs 84.01 crore in FY25, Rs 80.42 crore in FY24, and Rs 58.45 crore in FY23. The consolidated profit after tax stood at Rs 5.22 crore in FY25. KA Hygiene has only recently commenced standalone operations, and its individual turnover, profit after tax, and net worth are currently negligible.

Brainbees said the transaction qualifies as a related-party transaction but has been carried out at arm’s length. The company added that group entities have no interest in KA Hygiene beyond existing shareholding and common directorships. The transaction is expected to be completed on or before December 31, 2025.

The acquisition aligns with Brainbees’ strategy to expand its presence in the hygiene products category, which sits alongside its core baby and childcare offerings.

Separately, the company has incorporated Swara Corp in the United States through Swara Baby Products as part of its overseas expansion plans in hygiene and disposable products.

Brainbees recently reported consolidated revenue from operations of Rs 2,099 crore in Q2 FY26 and posted a positive EBITDA of Rs 111 crore for Q2 FY26.