INDIA— Nestle India is set to acquire pet food business Purina Petcare India for an estimated US$15.95 million, a move that will see Nestle India gain access to the region’s fast-growing pet foods market.
Purina is a pet food brand owned by Nestle globally and Purina Petcare was launched in India in 2017 as a separate entity.
The market research group Statista forecasts an annual growth of 18.89% for the Indian pet food market from 2022 to 2027. Purina Petcare India, which has posted remarkable numbers since its inception, is greatly poised to take advantage of the growing segment.
According to Nestle’s results from July 28, Purina recorded a turnover of US$9.03 million in the first half of 2022 compared to US$7.782 million last year. The internal growth was 5.1% and the organic growth was 13.9%.
“Post the pandemic, the category has accelerated to smaller towns and in general retail stores and on e-commerce. With a faster rate of pet adoption along with portfolio and town expansion opportunities, there are significant synergies upon integrating PFB of Purina Petcare India into Nestle India to help unleash the full potential,” Nestle India said.
The integration is also expected to scale up Purina Petcare India’s business from the wider distribution and supply chain network of Nestle India, which will effectively reach over 120 towns and accelerate organised trade, the company added.
In a statement, Suresh Narayanan, chairman and managing director, of Nestle India said “There are far greater synergies with evolution in channel strategies now than when the business was launched in 2018.
Purina PetCare India has gained traction amongst Indian pet owners and established the pet food brands across key segments while building a robust pet speciality distribution network,” he said.
The business transfer of Purina Petcare India Private Ltd. to Nestle India is set to happen from 1 October 2022. Narayanan added that going forward, leveraging Nestlé India’s network would accelerate the growth of the pet food business in India and from the quarter ending 31 December 2022, add to Nestlé India’s portfolio a promising business.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE.