MUMBAI, INDIA — Investment firm L Catterton announced June 20 an investment of about $60 million in a local pet food company in India, Drools Pet Food Private Limited. Drools will leverage the investment to strengthen its position as one of the largest domestic pet food companies in India’s skyrocketing pet nutrition market.
The Indian pet food segment is expected to witness significant growth driven by increased pet adoptions and the spread of urbanization throughout the country. Indian household sizes are shrinking, income is rising, and the humanization of pets is leading pet parents in the country to spend more on their four-legged companions. According to L Catterton, the Indian pet food market is set to grow about 20% annually during the next five years, achieving a value of more than $1.2 billion by 2028.
Drools has committed itself to capitalizing on these trends. In fact, the company nearly quadrupled its revenue during the past three years by scaling up its omnichannel business.
“Drools is dedicated to driving sustainable growth,” said Fahim Sultan, founder of Drools. “We have built a strong foundation for the future by embracing responsible business practices while delivering high-quality pet food products, and believe that partnering with L Catterton will enable us to enhance our position in the market as we continue our journey towards positively impacting the pet food sector.
“L Catterton’s expertise and ability to create value for companies in the sector is well known across the industry and will help us unlock a new phase of growth,” he added. “We are keen to leverage its consumer insights, operating know-how, as well as commercial network to further strengthen our brands and recruit talent. India’s developing pet market continues to mature across metros, as well as Tier 1 and Tier 2 cities, and we see many more years of secular growth ahead.”
Drools offers a variety of products under its flagship brand (Drools®), as well as its other brands, including Pure Pet, Meat Up, Canine Creek and Kitty Yum. The company’s products seek to functionally support pet health while addressing increasing consumer demand in India. Products include dry and wet diets for dogs, dry diets for cats, prescription formulas and pet treats.
“What truly differentiates Drools is its ability to manufacture high-quality products across the price ladder and make them available to pet parents via every relevant channel, be it online on Amazon or Flipkart, or offline in over 34,000 points of sale spanning specialty vet shops, veterinary clinics and general trade stores,” said Anjana Sasidharan, a partner of L Catterton Asia. “Its focus on product quality has helped it become a brand that has gained a reputation for providing high protein content at value-for-money price points, cultivating a very loyal base of customers. This is an exciting time to be entering the country’s pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business.”
This investment in Drools builds upon L Catterton’s dedication to the pet nutrition industry and also marks its first foray into the Indian pet food market. The investment firm has support various pet industry companies throughout the globe, including Butternut Box, Canidae, Harringtons, Instinct®, JustFoodForDogs, Lily’s Kitchen, Old Mother Hubbard®, Partner Pet, Petlove, Pure & Natural, Rachael Ray® Nutrish®, and Wagg.
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