There are many options for newborn diapers on the market, and parents often choose them based on priorities: comfort, ease of use, absorbency, or price range.
Many consumers may not know that some competing diaper brands are manufactured by the same contract producer—Swara Baby Products. Furthermore, these brands are indirectly associated with the retail company FirstCry.
This information is disclosed in the Draft Red Herring Prospectus (DRHP) of Swara Baby Products, which was filed earlier this month to raise 1000 crore rupees through an IPO.
Although Swara Baby Products may be a lesser-known company, it is managed by Brainbees Solution Ltd, the parent company of the popular online store for children's and mothers' goods, FirstCry. Brainbees first invested in Swara, based in Madhya Pradesh, in 2020 to acquire a controlling stake (53.45%), and later increased its stake to 76.59%.
According to the DRHP, Swara is the largest contract manufacturer of baby diapers in India. In addition to selling diapers under its own brand Cuddles, the company also manufactures diapers for FirstCry (under the Babyhug brand), Piramal Pharmaceuticals (Little’s), and Himalaya. The document also indicates that Swara supplies products to over 20 clients in categories such as baby diapers, adult incontinence aids, and feminine hygiene, although most clients are not named in the DRHP.
According to the DRHP, Swara operates manufacturing facilities in Pithampur, Madhya Pradesh, and plans expansion in this location. While well-known brands like Pampers, Mamy Poko, and Huggies handle their own production, many other brands, including Mee Mee, Apollo Pharmacy, Supples, Mothercare, and Solimo, rely on contract manufacturing.
Currently, the Indian baby diaper market is dominated by brands that manufacture their own products. The DRHP report notes that 'the top of the market is occupied by global leaders such as Pampers (P&G), MamyPoko (Unicharm), and Huggies (Kimberly-Clark), who enjoy long-standing consumer trust and extensive retail distribution. These brands primarily compete on performance metrics, skin safety, and emotional positioning, having gained widespread recognition in urban and semi-urban markets.'
Despite less than 18% of all diapers in India being produced by contract manufacturers, the DRHP reports a steady increase in the share of third-party manufacturing in the country over recent years. According to the report, this is driven by the rapid scaling of private and D2C brands, as well as the growing demand for flexible and capital-efficient manufacturing models. It adds that 'marketplaces such as Amazon, Flipkart, and FirstCry are increasingly developing their own private labels in the baby diaper segment, utilizing contract manufacturers for supply and leveraging their control over distribution, customer data, and platform visibility to generate higher profits without needing to invest in capital-intensive infrastructure.'
