Pune-based Brainbees Solutions, parent company of FirstCry, announced its acquisition of K.A. Enterprises (Hygiene) Private Limited via its subsidiary, Swara Baby Products Private Limited, as part of its further entry into the hygiene & disposable products category. In a filing made by Brainbees Solutions with the corporate affairs authority on December 23, Brainbees states that Swara Baby Products Private Limited signed both a share subscription agreement and a share purchase agreement, both made on December 22, 2025, citing its intent to acquire 100% of KA Hygiene shares held by its current stockholders.
The acquisition is an equity swap transaction where Swara Baby will issue 38,49,572 equity shares to the sellers of KA Hygiene. No cash consideration is involved in the transaction. The acquisition has been determined to be of worth Rs. 57.74 crores. Swara Baby’s shareholding in Brainbees will reduce from 87.29% to 75.92% after issuing shares in the acquisition. KA Hygiene will become a fully owned subsidiary of Swara Baby and a step-down subsidiary of Brainbees post the acquisition. The listed parent will have indirect control of 75.92%.
KA Hygiene was registered on July 31, 2019, and is engaged in the manufacturing and trading of hygiene articles. Before signing the acquisition agreement, KA Hygiene acquired the entire business of K.A. Enterprises, a group company, a company closely associated with it, operating in the same industry. The total revenue from the hygiene segment, including the acquired company, is Rs 84.01 crore during FY25, Rs 80.42 crore during FY24, and Rs 58.45 crore during FY23. The profit after tax is Rs 5.22 crore during FY25. KA Hygiene has started its operations recently with a nil turnover, profit after tax, and net worth.
Brainbees has clarified that the transaction falls under the category of a related-party transaction but has been conducted at arm’s length. Brainbees has clarified that entities within its group do not hold any interest in KA Hygiene beyond the current equity holding. This acquisition will help Brainbees diversify its portfolio in the hygiene category of products, which will sit along with its current portfolio of baby and childcare-related products. This acquisition is expected to be completed by December 31, 2025.
At the same time, the company has also set up Swara Corp in the United States through Swara Baby Products. Brainbees has recently reported a consolidated revenue from operations of Rs 2,099 crore for Q2 FY26 and a positive EBITDA of Rs 111 crore for Q2 FY26.
