Hampidjan completes Indian acquisition, accelerates manufacturing out of Norway
Hampiðjan's acquisition of a 75.1 per cent stake in the Indian net and rope manufacturer Kohinoor has now been fully completed.
The company said the settlement aligned closely with the original expectations, and the payment amounted to €21.7 million, which has been received by the seller’s bank.
The acquisition agreements include two performance-based targets that could result in additional payments to the sellers if met. If EBITDA reaches €4.45 million in the financial year 2024–25, which ended on March 31, then an additional payment of €2.07 million will be triggered.
The corresponding target for the 2025–26 financial year, ending March 31 of next year, is an EBITDA of €5.52 million, with the same €2.07 million in additional payment attached.
If the target for the previous year is not met but the combined EBITDA over the two financial years exceeds the sum of the two targets, then the full additional payment will still be made for both years.
Thus, the total purchase price could reach €25.8 million, provided that the EBITDA of €5.52 million is met.
Kohinoor employs just over 700 people and has three operational sites: two net and rope factories in Selu and a net workshop in Jalna. The current factory buildings cover nearly 60,000 m².
Kohinoor operates in the Maharashtra region, approximately 375 kilometres east of Mumbai.
Efforts are currently underway to acquire land in India for further development, with construction planned to begin this spring and the first phase expected to be completed around the New Year.
Authorities have pledged 12 hectares of land in the Auric industrial zone, about 20 kilometres east of Aurangabad, allowing for the construction of 60–70,000 m² in additional capacity.
Hampiðjan said the initial steps of relocating machinery and production from Lithuania have already begun. The first rope machine is already en route, with another awaiting shipment.
As the peak season for aquaculture cage production and related materials winds down in late summer, four knotless net weaving looms will be moved from Norway to Kohinoor. At the same time, specialised sewing machines and other equipment will be transferred from Poland and Lithuania to India.
Other efficiency improvements include the relocation of braiding machines and super rope production from Mørenot’s factory in Hildre, Norway, to the super rope division of Hampiðjan Baltic, where installation is underway. Hampidjan said this optimisation would take advantage of lower labour costs and better utilisation of equipment that was underused in Norway.
In Denmark, at Mørenot Denmark, staffing has been reduced from twelve to five, with further reductions expected by year-end. Only two international sales managers will remain.
The operations previously located in Denmark will be transferred to Norway, where existing facilities and staff will take over these tasks, requiring only additional warehousing personnel in Søvik, north of Ålesund.
