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Padam Cotton Yarns Ltd has executed a term sheet on October 6, 2025, to acquire a 40.5% equity stake in Rajasthani Namkeen Private Limited (RNPL) for a total consideration of Rs. 13 crore. Of this, Rs. 2 crore will be paid in cash and the remaining Rs. 11 crore through a share swap. This marks Padam Cotton Yarns' entry into the food and beverages sector, specifically into traditional snacks such as namkeen, sweets, papad, and bakery products. RNPL reported a turnover of Rs. 11.42 crore in FY25 (FY24: Rs. 14.25 crore; FY23: Rs. 10.59 crore) with a net worth of Rs. 64.55 lakh. Post-acquisition, RNPL will become an associate company, and the deal is targeted to close within 180 days.
This is a meaningful diversification move for Padam Cotton Yarns, transitioning from its core cotton yarn business into the consumer-facing F&B segment. Investors should note that RNPL is being made an associate (not a subsidiary) and the acquisition consideration appears rich relative to RNPL's current turnover and net worth, so the long-term value creation will depend on growth in the food business.