Nestle SA makes first India funding, buys stake in pet food brand

The global FMCG giant has acquired a minority stake in pet food brand Drools, which recently achieved unicorn status and will remain operationally independent

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.

 

The company added that Drools will continue to operate independently. 

 

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.

 

“We are thrilled that Nestlé, which has such a renowned position in global pet care and consumer brands, joins as a minority partner,” she added.