Disposable Hygiene Products Maker Plans Capacity Expansion as Revenue Crosses ₹1,100 Crore
Swara Baby Products, a subsidiary of Brainbees Solutions Ltd, the parent company of FirstCry, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO) worth ₹1,000 crore.
The proposed IPO consists of a fresh issue of equity shares worth up to ₹500 crore and an Offer for Sale (OFS) of up to ₹500 crore by existing shareholders. The listing marks another significant step for the FirstCry group as it looks to unlock value from its manufacturing business while supporting future expansion.
The company, which manufactures disposable hygiene products for several leading consumer brands, plans to use the fresh capital to expand manufacturing capacity, reduce debt, support subsidiaries, and pursue inorganic growth opportunities.
IPO Structure: Fresh Issue and Offer for Sale
According to the DRHP, the public issue comprises two components.
The company will issue fresh equity shares worth up to ₹500 crore, while another ₹500 crore will be raised through an Offer for Sale by existing shareholders.
Under the OFS, Brainbees Solutions Ltd (FirstCry) plans to sell shares worth ₹300 crore. At the time of filing the DRHP, Brainbees held a 76.59% stake in Swara Baby Products.
The remaining ₹200 crore worth of shares will be sold by the promoter entity Anadya Bon Merchari LLP.
Additionally, the company may undertake a pre-IPO placement of up to ₹100 crore. If completed, the size of the fresh issue will be reduced accordingly.
How Will Swara Baby Use the IPO Proceeds?
Swara Baby Products has outlined multiple growth initiatives for the funds raised through the fresh issue.
The company plans to invest ₹198.2 crore in setting up a new manufacturing facility in Madhya Pradesh, significantly enhancing its production capacity.
Another ₹100 crore will be used to repay certain borrowings, helping strengthen the company’s balance sheet.
An additional ₹27.5 crore will be infused into its subsidiaries Solis Hygiene, Swara Hygiene, and KAEHPL to enable them to repay outstanding debt.
The remaining proceeds will be utilized for strategic acquisitions, expansion opportunities, and general corporate purposes, supporting the company’s long-term growth strategy.
India’s Largest Contract Manufacturer in Disposable Hygiene
Founded in 2016, Swara Baby Products specializes in manufacturing a wide range of disposable hygiene products.
Its portfolio includes baby diapers, adult diapers, sanitary napkins, disposable underpads, and wet wipes.
Apart from manufacturing products under its own brands, the company also serves as a contract manufacturer for several domestic and international consumer brands.
According to the company, it was India’s largest contract manufacturer of disposable hygiene products by value in FY25.
Its manufacturing capabilities cater to multiple product categories, including baby care, feminine hygiene, and adult incontinence, making it one of the country’s largest integrated hygiene product manufacturers.
Strong Financial Performance Ahead of IPO
Swara Baby Products enters the public markets with healthy financial growth.
For the financial year ended March 2026, the company reported operating revenue of ₹1,164 crore, representing a 23.4% year-on-year increase from ₹943 crore in FY25.
Profit after tax also increased 18.5%, reaching ₹96 crore during FY26.
The consistent growth in both revenue and profitability highlights rising demand for disposable hygiene products across India and strengthens the company’s investment case ahead of its proposed IPO.
The expanding market for baby care, feminine hygiene, and adult healthcare products continues to create significant long-term opportunities for organized manufacturers.
Expansion Through Strategic Acquisitions
Swara Baby Products has also been strengthening its manufacturing footprint through acquisitions.
In December last year, Brainbees Solutions, through Swara Baby Products, completed the acquisition of 100% stake in KA Hygiene in a share swap transaction valued at ₹57.74 crore.
The acquisition expanded the company’s production capabilities and reinforced its position in India’s hygiene products market.
Going forward, Swara Baby intends to continue exploring inorganic growth opportunities using a portion of the IPO proceeds.
What Does This Mean for India’s Consumer Manufacturing Sector?
The proposed IPO reflects growing investor interest in India’s consumer manufacturing and hygiene products industry.
Increasing awareness of personal hygiene, rising disposable incomes, urbanization, and expanding healthcare needs continue to drive demand across baby care, feminine hygiene, and adult incontinence categories.
For Brainbees Solutions, the partial stake sale offers an opportunity to unlock value while retaining a majority holding in the business.
With expanded manufacturing capacity, improving financial performance, and a leadership position in contract manufacturing, Swara Baby Products appears well positioned to capitalize on India’s growing hygiene products market.
If approved by SEBI, the IPO will further strengthen the company’s expansion plans while adding another fast growing manufacturing business to India’s public markets.
