Hampidjan acquires majority stake in India’s Kohinoor Ropes.
Icelandic net and rope manufacturer Hampidjan has acquired a 75.1% stake in Kohinoor Ropes, one of India’s largest producers of nets and ropes. The acquisition strengthens Hampidjan’s supply chain and expands its reach into new markets, particularly in aquaculture.
Kohinoor operates three production facilities—two net and rope factories in Selu and a net workshop in Jalna—along with an office in Aurangabad. The company employs over 700 people, bringing Hampidjan’s total workforce to approximately 2,700 following the transaction. Kohinoor’s current owners will retain a 24.9% minority stake, maintaining continuity in operations.
The companies have had a long-standing partnership, with Kohinoor serving as a key supplier to Hampidjan, particularly for twisted ropes. Last year, Hampidjan was Kohinoor’s largest single customer. The acquisition will allow Hampidjan to fully integrate production of key inputs and capture more of the value chain, particularly in aquaculture, where demand for fish farming cages has been increasing.
Strategic expansion into new markets
The acquisition provides Hampidjan with greater access to markets that were previously more challenging due to geographical and cost barriers. Kohinoor has already established a foothold in Chile, the world’s second-largest salmon producer, and the deal will facilitate further expansion in the Middle East, Asia, and Oceania. Hampidjan’s subsidiaries, including Mørenot Aquaculture, Hampidjan New Zealand, and Hampidjan Australia, will gain access to a broader product range through Kohinoor’s manufacturing capabilities.
Hampidjan CEO Hjörtur Erlendsson described the acquisition as a major step in improving the company’s cost structure and competitiveness.
“The acquisition of a majority stake in Kohinoor will enhance Hampidjan’s ability to stay ahead of competitors. We see immediate opportunities to optimize operations by shifting production of certain items from external suppliers to Kohinoor, allowing us to fully capture the margin within our own value chain.”
Erlendsson emphasized that India offers a significantly more cost-effective production environment compared to Europe. Lower land and construction costs, cheaper raw materials, and substantially lower labor costs make India a more attractive location for labor-intensive processes such as assembling fishing gear and aquaculture pens.
“Transferring production to India will allow us to optimize operations and improve profitability. The cost advantage in labor alone is a key factor, as the production of fishing gear and fish farming pens is highly labor-intensive. This competitive edge will not only strengthen our current market position but also open doors to markets where we have had limited presence until now.”
The company aims to achieve operational efficiencies by autumn, with greater financial benefits expected next year.
