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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.
Time of India
26-05-2025
- Business
- Time of India
Drools turns unicorn after Nestle picks up minority stake
MUMBAI: Swiss consumer goods giant Nestle S.A has picked up a minority stake in Indian pet food startup Drools. The Bengaluru-based company did not disclose the specifics of the deal but said that it has been valued at $1 billion post the investment, joining the ranks of unicorn startups. 'This is a financial investment by the company and Drools will remain strategically as well as operationally independent,' Nestle said in a statement on Monday, without elaborating further. Nestle's investment in Drools comes at a time when the broader pet food and pet care space in India is seeing a surge in growth led by an expanding crop of millennial and Gen Z pet parents who do not mind paying more to provide quality nutrition and care for their pets. Nestle has a large pet care (includes pet food) business (operates under master brand Purina) which made up about 20.7% of the company's total sales in 2024. The pet care business recorded sales of 18.9 billion Swiss Francs during the year, according to its annual report. Purina Petcare was launched in India as a separate entity in 2017; in 2022, Nestle India acquired the pet foods business of Purina Petcare India for Rs 123.5 crore. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here - This Might Save You From Losing Money Expertinspector Click Here Undo In India, companies like Godrej Consumer Care have also forayed into the pet care market of late. Backed by L Catterton, Drools competes with a mix of global and local pet food brands in India including Mars PetCare and Heads Up For Tails. Drools had last raised $60 million from L Catterton in June 2023. The company will use portions of the investment to expand in a growing market. Founded in 2010, Drools products are distributed across more than 40,000 retail outlets and exported to 22 countries. Drools is the fourth unicorn of the year after Netradyne, Porter and JSW One. '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,' Fahim Sultan, founder at Drools said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
26-05-2025
- Business
- Time of India
Nestle SA acquires minority stake in Drools Pet Food
New Delhi: FMCG major Nestle SA , the parent company of Nestle India, has acquired a minority stake in Drools Pet Food, the latter said in a press release on Monday. 'This is a testament to the love and trust of millions of pet parents and our unwavering commitment to quality,' said Fahim Sultan , founder, Drools Pet Food. Founded in 2010, Drools operates six manufacturing units along with a 16 lakh square feet warehousing footprint. Its products are available across 40,000 retail outlets in India and are exported to over 22 countries. In June 2023, global private equity firm L Catterton invested USD 60 million in Drools for a minority stake.
Entrepreneur
26-05-2025
- Business
- Entrepreneur
Nestlé Acquires Minority Stake in Pet Food Brand Drools
The funds raised from this investment will be deployed to enhance Drools' R&D capabilities, strengthen distribution networks, and fuel its global expansion. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Nestlé S.A. has acquired a minority stake in Drools Pet Food Private Limited, marking a major milestone in India's pet care landscape. The funds raised from this investment will be deployed to enhance Drools' R&D capabilities, strengthen distribution networks, and fuel its global expansion. Despite the strategic partnership, Drools will retain full operational independence. Founded in 2010 by Fahim Sultan, Drools has grown from a domestic start-up into a major player in the pet food sector. With a vision to offer high-quality, science-backed nutrition tailored to pets' health and dental needs, the company now operates six cutting-edge manufacturing units and maintains a vast warehousing footprint of 16 lakh sq. ft. It boasts over 650 SKUs across categories like high-protein diets, prescription formulas, and affordable meal options. "Our mission has always been rooted in providing pets with the best possible nutrition," said Fahim Sultan, Founder of Drools. "This partnership with Nestlé is a testament to the love and trust of millions of pet parents and to our unwavering commitment to quality." Drools' products are available in more than 40,000 retail outlets across India and exported to 22 countries, further supported by a dedicated team of 3,400 employees, including 1,800 sales professionals. The brand is also a dominant player in the cat food category and a top seller on leading e-commerce platforms like Amazon. Following an earlier minority investment by L Catterton in 2023, the Nestlé partnership signals further momentum. Anjana Sasidharan, Partner at L Catterton, added, "Nestlé joining the journey validates Drools' strong growth and operational excellence." With its Indian roots and international ambitions, Drools is on a path to redefine global pet care.
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.'
