Firstcry Parent's acquisition of KA Enterprises will broaden the hygiene play

Brainbees Solutions, the parent company of FirstCry, has announced that its subsidiary Swara Baby Products will buy 100% of hygiene products company KA Enterprises Hygiene (KA Hygiene). The deal is a share-swap worth ₹57.74 crore.

As part of the deal, Swara Baby will issue 38.49 lakh shares to KA Hygiene’s existing shareholders. After this, Brainbees’ stake in Swara Baby will reduce to 75.92% from 87.29%. KA Hygiene will become a fully owned subsidiary of Swara Baby and an indirect subsidiary of Brainbees.

KA Hygiene, based in Pune and started in 2019, makes sanitary pads and baby diapers. Its combined business reported a turnover of ₹84.01 crore in FY25, up from ₹80.42 crore last year. The company posted a profit of ₹5.22 crore in FY25.

Swara Baby Products is a contract manufacturer of diapers and feminine hygiene products and has recently entered the US market. The acquisition is expected to be completed by December 31, 2025.

Following the announcement, Brainbees shares rose 3% to ₹299.4 on the BSE.

In the September 2025 quarter, Brainbees reduced its net loss by 20% to ₹50.5 crore, while revenue grew 10% to ₹2,099 crore. The company said it is changing its product strategy to improve margins, offer better prices, and increase customer volumes across online and offline channels.

Backed by SoftBank and Premji Invest, FirstCry sells baby and kids’ products across more than 7,800 brands and serves 11 million customers. Brainbees is also expanding through acquisitions via its subsidiary Globalbees Brands, recently increasing stakes in fitness and personal care companies.