Consumer Sector M&A and PE Transactions Reach $4 Billion in Q1

Synopsis

In the first quarter of 2023, M&A and PE deals within India's consumer and retail markets surged to a three-year high of nearly $4 billion, led by significant investments from Temasek and Wilmar International. This reflects a strong investor confidence and ongoing consolidation in the sector.

Key Takeaways

Total M&A and PE deal value reached $4 billion.
Significant investments by Temasek and Wilmar International.
Number of deals rose to 139, reflecting a strong market.
Growth in segments like food & beverages and e-commerce.
Consolidation seen with major acquisitions in the sector.

Mumbai, April 15 (NationPress) The total value of mergers and acquisitions (M&As) along with private equity (PE) transactions in India's consumer and retail sectors surged to a remarkable three-year peak of nearly $4 billion during the January-March quarter of this year, as reported by consultancy firm Grant Thornton Bharat’s quarterly deal tracker.

Leading the list of transactions was Singapore’s PE firm Temasek, which injected $1 billion into Haldiram Snack Foods for a 10 percent stake in the renowned Indian snack producer. Additionally, Wilmar International's $1.4 billion investment raised its ownership in Adani Wilmar (now known as AWL Agri Business following Adani Group’s exit) from 44 percent to nearly 75 percent. These significant deals are indicative of the increasing investor confidence in India's food processing sector, according to the report.

Comparatively, the January-March quarter experienced a remarkable upturn from the same periods in 2023 and 2024, reaching almost $4 billion in value, while the total number of deals climbed to 139. This is threefold the value of transactions completed in the first quarter of 2023 ($1.28 billion) and double that of the first quarter of 2024 ($1.74 billion). The deal counts for the initial quarters of the last two calendar years were 78 and 102, respectively.

“India’s consumer and retail sector is entering a vibrant phase of growth, with M&A and private equity investments surging across high-potential segments like food & beverages, personal care, and e-commerce. Particularly, the F&B segment is witnessing robust momentum as consumers pursue superior products while brands leverage digital platforms for outreach,” stated Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat.

“We anticipate that strategic consolidation and capital influx will persist in the consumer and retail sectors as businesses showcase resilience, digital agility, and a strong consumer connection,” Malpani further noted.

The ongoing consolidation in the consumer sector during the January-March quarter was exemplified by major companies engaging in significant deals, including Hindustan Unilever (HUL) purchasing the D2C brand Minimalist, ITC acquiring frozen foods producer Prasuma, and Adani Wilmar taking over GD Foods, the firm behind the Tops brand of sauces and pickles.