Hygiene products manufacturer plans to boost production capacity, reduce debt and pursue strategic acquisitions as India's disposable hygiene market continues to expand rapidly.

Swara Baby Products, a leading contract manufacturer of baby diapers, adult diapers and feminine hygiene products, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an Initial Public Offering (IPO). Backed by Brainbees Solutions Ltd, the parent company of FirstCry, the proposed public issue is aimed at strengthening the company's manufacturing capabilities, improving its financial position and supporting future growth initiatives.

The IPO will comprise a fresh issue of equity shares worth up to ₹500 crore and an Offer for Sale (OFS) of ₹500 crore by existing shareholders. The company may also undertake a pre-IPO placement of up to ₹100 crore, which could reduce the size of the fresh issue if completed before the public offering.

The proposed listing comes at a time when India's hygiene products industry is witnessing strong demand, driven by rising disposable incomes, increasing health awareness, organised retail expansion and higher penetration of personal care products across urban and rural markets.

IPO Structure Balances Growth Capital and Shareholder Exit

The proposed ₹1,000 crore public issue has been structured to provide growth capital for the company while allowing partial exits for existing investors.

Under the Offer for Sale:

• Brainbees Solutions Ltd (FirstCry) will sell shares worth up to ₹300 crore.

• Anadya Bon Merchari LLP will divest shares worth up to ₹200 crore.

Since the OFS proceeds will go directly to the selling shareholders, only the funds raised through the fresh issue will be available for the company's expansion and operational requirements.

Fresh Issue to Fund Manufacturing Expansion

A major portion of the IPO proceeds has been earmarked for expanding Swara Baby's manufacturing capacity.

The company plans to invest approximately ₹198.2 crore in establishing a new manufacturing facility in Madhya Pradesh, enabling it to meet growing demand from both domestic and international customers.

The additional capacity is expected to strengthen production efficiency, improve economies of scale and support future customer acquisitions across multiple hygiene product categories.

Increasing outsourcing by consumer brands has created strong opportunities for contract manufacturers with large-scale production capabilities.

Debt Repayment to Improve Financial Strength

Swara Baby also intends to utilise around ₹100 crore from the fresh issue proceeds towards repayment or prepayment of existing borrowings.

Lower debt levels are expected to reduce finance costs, strengthen the balance sheet and improve overall profitability.

A healthier financial profile could also provide greater flexibility for future capital investments and business expansion.

Investment in Subsidiaries and Future Acquisitions

The company plans to invest approximately ₹27.5 crore in its subsidiaries:

• Solis Hygiene

• Swara Hygiene

• K.A. Enterprises Hygiene Pvt. Ltd.

The investment will primarily be used for repayment of outstanding obligations within these entities.

Additionally, Swara Baby intends to utilise a portion of the IPO proceeds to pursue strategic acquisitions, allowing it to diversify its product portfolio, strengthen manufacturing capabilities and expand its market presence.

The remaining funds will be allocated towards general corporate purposes.

Strong Position in India's Hygiene Manufacturing Industry

Established in 2018, Swara Baby Products has rapidly emerged as one of India's leading manufacturers of disposable hygiene products.

The company manufactures a wide range of products, including:

• Baby diapers

• Adult diapers

• Sanitary napkins

• Panty liners

• Disposable hygiene solutions

Apart from contract manufacturing for leading consumer brands, the company also sells products under its own brands, Cuddles and Shield, through online platforms and organised retail channels.

Its diversified business model enables it to serve multiple high-growth segments within India's expanding personal care industry.

Leadership in Contract Manufacturing

According to the DRHP, Swara Baby has established a dominant position in India's contract manufacturing segment.

During FY25, the company accounted for:

• 37% of India's baby diaper contract manufacturing market.

• 36% of the adult diaper contract manufacturing market, measured by value.

These market leadership positions reflect the company's manufacturing scale, operational expertise and long-standing customer relationships.

The company currently operates four manufacturing facilities located in Pithampur and Indore, Madhya Pradesh, serving both domestic and institutional clients.

Financial Performance Reflects Healthy Growth

Swara Baby has delivered consistent growth in both revenue and profitability.

For FY26, the company reported:

• Revenue from operations of ₹1,163.9 crore, compared with ₹942.97 crore in FY25.

• Profit after tax (PAT) of ₹95.58 crore, up from ₹80.67 crore in the previous financial year.

The steady improvement reflects increasing demand, operational efficiencies and expansion of customer relationships.

Baby diapers continued to dominate the product mix, contributing approximately 79% of total product sales during FY26.

Blue-Chip Customer Base Enhances Business Stability

Swara Baby supplies hygiene products to several leading consumer companies across India.

Its major customers include:

• Brainbees Solutions (FirstCry)

• Piramal Pharma

• Himalaya Wellness Company

The company further expanded its presence in the feminine hygiene segment through the acquisition of K.A. Enterprises Hygiene in December 2025.

The acquisition strengthens product diversification while enhancing manufacturing capabilities in a fast-growing category.

Industry Tailwinds Support Long-Term Growth

India's disposable hygiene market continues to benefit from several structural growth drivers, including:

• Rising birth rates in several regions.

• Growing awareness of hygiene and healthcare.

• Increasing female workforce participation.

• Higher disposable incomes.

• Expansion of organised retail.

• Rapid growth of e-commerce.

• Greater adoption of premium hygiene products.

Contract manufacturing is also gaining popularity among consumer brands seeking to improve operational efficiency and reduce capital expenditure, creating significant opportunities for established manufacturers.

Outlook

Swara Baby Products' proposed ₹1,000 crore IPO represents an important milestone in the company's growth journey as it seeks to expand manufacturing capacity, strengthen its balance sheet and capture rising demand across India's fast-growing hygiene products market. Supported by a strong customer base, leadership in contract manufacturing, improving financial performance and favourable industry trends, the company is well positioned to benefit from increasing demand for disposable hygiene products.

Investors will closely evaluate the company's valuation, utilisation of IPO proceeds, capacity expansion plans and future earnings trajectory as it prepares to enter the public markets. If executed successfully, the planned investments could significantly enhance Swara Baby's competitive position in one of India's fastest-growing consumer manufacturing segments.