Cupid Shares Gain Over 3% On Strategic Land Acquisition In Mumbai

Following the FMCG company's strategic announcement that it has bought a new land piece in an industrial area near Mumbai to boost its manufacturing capacities, Cupid's share price saw green trading during the morning transactions on December 5. The share price began at Rs 868 per share, and at 10.17 a.m., it was trading at Rs 895.10, showing an upside gap of 3.71%.

Cupid Limited, a leader in the personal health sector, has announced the acquisition of a new land parcel in an industrial area close to Mumbai, marking a significant strategic step. This action is expected to significantly boost the company's manufacturing capacity and strengthen its position in the international market. Cupid Limited will be able to increase its manufacturing capacity by 1.5 times the current output thanks to the purchase. This would increase the yearly production capacity by about 770 million condoms for men and 75 million for women. The existing production capacity of 50 million female condoms and 480 million male condoms has been boosted by this expansion.

Mr Aditya Halwasiya, Managing Director said, "Within 18 to 24 months post-expansion, our capacity for male condoms is expected to surge to an impressive 1.25 billion units, while female condom production will rise to 125 million units. This marks a new era in Cupid Limited's journey towards global leadership in sexual wellness and reaffirms our long-standing commitment to all our stakeholders that 'We help the world play safe'. This expansion is expected to add Rs.240 crores to our revenues and Rs. 70 crores to our EBITDA."

Most importantly, there would be no need for borrowing because the whole cost of this capacity growth will come from internal accruals. The company aims to reaffirm its dedication to quality and innovation by investing in cutting-edge equipment at every stage of production.

Furthermore, Cupid Limited plans to establish fresh partnerships with foreign companies in order to broaden its worldwide reach. This strategic action will strengthen Cupid Limited's existing robust worldwide footprint in the sexual wellness space, spanning over 105 countries, while also expanding its market reach. Over the next seven to ten years, the Indian contraceptives market is expected to develop at a robust 12.2% CAGR due to growing populations and a wider cultural change among the younger end of the target population.

Furthermore, CUPID has established a long-term agreement with WHO/UNFPA. The company was recently acquired by Columbia Petro Chem Private Limited and Mr. Aditya Kumar Halwasiya of the Universal- Halwasiya Group and Family for Rs 159.06 crore. The company recorded Rs 164.10 crore in total revenue, Rs 46.08 crore in EBITDA, and Rs 31.58 crore in profit after taxes for FY23.