A $60 million investment was made in Bengaluru-based Drools Pet Food by L. Catterton, a private equity vehicle supported by Mot Hennessy Louis Vuitton, the world’s largest manufacturer of luxury goods.
According to a statement from the business, the acquisition is worth $600 million for the pet food manufacturer, which was launched in 2010.
How the money will be used
The money will be used, according to the announcement, to expand the business’s current manufacturing capacity, fulfil the rising demand for premium pet food products, advance its retail strategy, increase its marketing budget, and recruit top talent.
Shashank Sinha, CEO and veterinarian at Drools Pet Food, said in the statement: “With the assistance of our new partner, we will strengthen our production capabilities, increase our retail footprint, and invest in strategic marketing initiatives.”
Drools Pet Food is an Indian company with 34,000 retail locations that sells its goods. Fahim Sultan founded it in 2010. Additionally, the business exports its goods to over 22 nations, such as Australia, Israel, and the United Arab Emirates.
According to the statement, the company intends to launch in Russia by 2023 and subsequently in the United States. Among its 3,400 employees, the organization employs 1,800 sales-focused workers.
Opportunity worth billion
On the strength of rising pet adoption, as the nation becomes more urbanised and household sizes shrink, the pet food market in India is predicted to grow by about 20% annually over the next five years to reach over $1.2 billion in 2028, according to a separate statement made on the investment by L. Catterton.
According to the statement, “macro trends like rising income levels and the increasing humanization of pets are also leading pet owners to spend more on their pets, especially on buying packaged food rather than cooking home-cooked meals.”
The portfolio of Drools includes brands for dog and cat food such as Drools, Pure Pet, Meat Up, Canine Creek, and Kitty Yum. A total of 8,000 square feet are operated by the corporation through three manufacturing facilities and a warehouse. It can provide 650 stock-keeping units due to the infrastructure.
As India’s growing pet industry grows throughout metros as well as Tier 1 and Tier 2 cities, this cooperation will open the door to a new phase of growth. The pet food industry is widely aware of L. Catterton’s skills and capacity to add value to businesses. As we anticipate many years of secular growth, we are eager to make use of its consumer insights, operational expertise, and commercial network to further improve our brands and hire talent. Sultan said this in the release.
