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Business Standard
26-05-2025
- Business
- Business Standard
Nestle SA makes first India investment, acquires minority stake in Drools
Global fast-moving consumer goods (FMCG) major Nestlé SA on Monday announced that it has acquired a minority stake in Indian pet food brand Drools. Nestlé SA is the parent of Nestlé India, which makes products such as KitKat chocolates and Nescafé instant coffee. The value of the deal was not disclosed. This marks Nestlé SA's first-ever investment in an Indian brand. The announcement comes after Drools raised $60 million in June 2023 from L Catterton, the private equity firm backed by luxury conglomerate LVMH. The Indian pet food market, currently valued at ₹5,000 crore, is expected to witness double-digit growth. 'This milestone not only reaffirms Drools' leadership in India's fast-growing pet care sector but also marks one of the strongest institutional validations of an Indian consumer brand in this space,' Drools said in a press release. Founded in 2010, Drools distributes its products across over 40,000 retail outlets and exports to 22 countries. It operates six manufacturing units and has a warehousing footprint of 1.6 million sq. ft. 'This is a testament to the love and trust of millions of pet parents and to our unwavering commitment to quality,' said Fahim Sultan, founder of Drools Pet Food. 'Backed by a strong focus on science-based nutrition, Drools continues to drive innovation and build meaningful engagement with the evolving demographic of Indian pet parents, positioning itself at the forefront of the country's pet care industry,' he added, noting that the company has recently attained unicorn status. The development comes at a time when Nestlé India has identified pet care as a key growth area. It already operates in this space through its Purina Petcare division. 'Drools has achieved significant growth since we invested in the company, through high-quality in-market agility and execution, and a range of operational initiatives we have been working on with its management team to create value,' said Anjana Sasidharan, Partner and Head of India at L Catterton.
Mint
26-05-2025
- Business
- Mint
Nestle SA picks up minority stake in Indian pet food company Drools
New Delhi: Swiss food giant Nestle SA, the parent company of Nestle India, has made a minority investment in the Indian pet food company Drools Pet Food Private Limited. The financial details of this investment, Nestle SA's first in India, were not disclosed. Nestle SA owns popular brands such as Kit Kat and Milo. Drools will remain operationally independent after the investment, according to a statement released on Monday. The investment follows a $60-million fundraise by the company in 2023 from LVMH-backed private-equity firm L Catterton. The firm's investment in Drools amounted to 10% of the company's valuation at the time, making it one of the largest investments in the Indian pet care industry. Founded in 2010 by Fahim Sultan, Drools sells high-protein and prescription diets for pets. Its products are distributed across more than 40,000 retail outlets and exported to 22 countries. The company operates six manufacturing units and has a large warehousing footprint. It is also a key player in India's cat food market and a leading seller on e-commerce platforms including Amazon. Nestle has a large pet food business. In 2024 its pet care business reported 18.9 billion Swiss francs in sales, accounting for 20.7% of the company's total sales that year. It sells pet food for dogs and cats under brands such as Purina and Felix, according to the company's 2024 annual report. Purina Petcare was launched in India in 2017, albeit as a separate entity. In 2022 Nestle India acquired the pet food business Purina Petcare India for an estimated ₹ 125.3 crore to operate and scale the brand in India. Pet ownership in India surged during the pandemic as people were confined to their homes. The country now has an estimated 100 million pets, including 30 million in households. The pet food market, currently valued at $551 million, is projected to reach $1.8 billion in the next seven to eight years. The broader pet care sector has seen a rise in homegrown brands selling food, toys and accessories. Last August consumer products company Godrej Consumer Products Ltd (GCPL) announced plans to enter the pet food market in FY26 with the launch of its subsidiary Godrej Pet Care. GCPL will invest ₹ 500 crore in Godrej Pet Care over the next five years, partnering with Godrej Agrovet Ltd (GAVL) for manufacturing and R&D, the company said at the time. Other major pet food sellers include Mars Pet Nutrition, the maker of Pedigree and Royal Canin, and Nestle India. Anjana Sasidharan, partner and head of India at L Catterton, said, 'Drools has achieved significant growth since we invested in the company two years ago, through high-quality in-market agility and execution, and a range of operational initiatives we have been working on with its management team to create value. We are thrilled that Nestle, which has such a renowned position in the global pet care and consumer brands space, joins as a minority partner.' Fahim Sultan, founder of Drools Pet Food, said, 'This is a testament to the love and trust of millions of pet parents and to our unwavering commitment to quality… Backed by a strong focus on science-based nutrition, Drools continues to drive innovation and build meaningful engagement with the evolving demographic of Indian pet parents, positioning itself at the forefront of the country's pet care industry.'
