M&A, PE deals in consumer sector surge to 3-year high at $4 bn in Jan-March

Mumbai, April 15 (IANS) The value mergers and acquisitions (M&As) as well as private equity (PE) deals in India’s domestic consumer and retail markets rose to a three-year high of close to $4 billion in the January-March quarter this year, according to consultancy firm Grant Thornton Bharat’s quarterly deal tracker report.

On the top of the deal list was Singapore-based PE player Temasek’s $1-billion investment in Haldiram Snack Foods for a 10 per cent stake in the Indian snack company and Wilmar International’s $1.4-billion investment that increased its shareholding from 44 per cent to nearly 75 per cent in Adani Wilmar (now called AWL Agri Business after Adani Group’s exit). The mega deals reflect growing investor confidence in India’s food processing sector, the report states.

The January- March quarter saw a steep rise compared to the same period in 2023 and 2024, touching nearly $4 billion in value, while the number of deals rose to 139. This is three times the value of deals struck in the first quarter of 2023 ($1.28 billion) and twice the value of deals struck in the first quarter of 2024 ($1.74 billion). The number of deals in the first quarter of the last two calendar years stood at 78 and 102, respectively.

“India’s consumer and retail sector is entering a dynamic phase of growth, with M&A and private equity investments surging across high-potential segments such as food & beverages, personal care, and e-commerce. In particular, the F&B space is seeing strong momentum, as consumers seek better products and brands embrace digital distribution to reach them,” said Naveen Malpani, partner and consumer industry leader, Grant Thornton Bharat.

“We expect strategic consolidation and capital inflows to continue within the consumer and retail sectors as businesses demonstrate resilience, digital agility, and strong consumer connect,” Malpani added.

The growing consolidation within the consumer sector in the January- March quarter, was reflected in leading companies striking deals such as Hindustan Unilever (HUL) acquiring D2C brand Minimalist, ITC buying frozen foods’ player Prasuma, and Adani Wilmar taking over GD Foods, the company that markets the Tops brand of sauces and pickles.

--IANS

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