India's retail and consumer industries saw a spurt in mergers, acquisitions (M&As), and private equity (PE) investments in the January–March 2025 quarter, with deal values reaching a three-year high of almost $4 billion, as reported by consultancy firm Grant Thornton Bharat in its latest quarterly deal tracker.
At the forefront of the deal was Singapore's mighty private equity giant Temasek, which invested $1 billion in Haldiram Snack Foods, taking a 10 per cent stake. Another significant deal belonged to Wilmar International, which invested $1.4 billion to increase its holding in Adani Wilmar from 44 per cent to nearly 75 per cent. Since Adani Group's exit, the company has been rechristened AWL Agri Business. These record investments reflect an increasing confidence of foreign investors in India's burgeoning food processing sector, the report added.
Relative to the equivalent quarter in 2023 and 2024, the total value of deals has boomed. This year's $4 billion is over three times larger than Q1 2023's $1.28 billion and more than double Q1 2024's $1.74 billion. The number of deals also increased substantially to 139 in Q1 2025 compared to 78 and 102 in Q1 2023 and Q1 2024, respectively.
India's consumer and retail industry is going through an exciting phase of growth, with M&A and private equity investment growing across high-potential areas like food & beverages, personal care, and e-commerce. The F&B segment in particular is experiencing robust momentum as consumers look for improved products and brands adopt digital distribution to find them," noted Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat.
We anticipate strategic consolidation and capital inflows to persist in the consumer and retail industries as companies show resilience, digital agility, and robust consumer connect," he added.
The wave of consolidation was also seen in purchases by large domestic players. Hindustan Unilever (HUL) diversified its portfolio with the acquisition of D2C skincare brand Minimalist. ITC forayed deeper into the frozen foods space with its acquisition of Prasuma, and Adani Wilmar expanded its food business with the acquisition of GD Foods, which had its Tops brand of sauces and pickles.
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