Global FMCG giant Nestlé SA has made its first-ever investment in an Indian company by acquiring a minority stake in Drools, a fast-growing pet food brand. The move signals Nestle’s increasing interest in India’s booming pet care sector and strengthens its presence in a market poised for rapid expansion.
Landmark Entry into Indian Market
This acquisition marks Nestlé SA’s debut investment in an Indian brand. While Nestle India, its subsidiary, is already a household name producing KitKat chocolates and Nescafé coffee, this deal reflects the parent company’s strategic intent to diversify within India. The value of the transaction was not disclosed, but it comes less than a year after Drools raised $60 million from L Catterton, a private equity firm backed by LVMH.
About Drools: India’s Pet Food Leader
Founded in 2010, Drools has established itself as a leader in India’s pet nutrition space. It distributes products across more than 40,000+ retail outlets and exports to 22 countries. With six manufacturing units and a warehouse footprint of 1.6 million sq. ft, Drools has built a robust supply chain and product portfolio. The company recently achieved unicorn status, highlighting investor confidence and rapid growth.
Operational Independence to Continue
Despite Nestle’s investment, Drools will remain operationally independent. This ensures that the company retains its unique brand identity and customer relationships while benefiting from the strategic expertise of a global powerhouse. Founder Fahim Sultan emphasized that the investment is “a testament to the love and trust of millions of pet parents” and reaffirmed the company’s commitment to science-backed nutrition and quality.
Growth Potential in India’s Pet Care Industry
India’s pet food market, currently valued at Rs. 5,000 crore, is expected to grow at a double-digit rate, driven by a rising number of pet owners and increasing awareness about pet nutrition. Drools’ innovative product range and strong retail footprint position it at the forefront of this growth. Nestle, which already operates in the pet care segment globally through Purina Petcare, sees this as a natural extension of its strategy in emerging markets.
Investor Confidence and Future Outlook
L Catterton, Drools’ earlier investor, welcomed the entry of Nestlé. Anjana Sasidharan, Partner and Head of India at L Catterton, said, “We are thrilled that Nestlé, with its global expertise in pet care, has come on board. Drools has scaled rapidly due to its innovation, quality, and execution.” With strong backing from both Nestlé and L Catterton, Drools is expected to accelerate its expansion in India and international markets.
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