INDIA -Investment firm L Catterton recently announced an investment of about US$60 million in a local pet food company in India, Drools Pet Food Private Limited, strengthening its position as one of the largest domestic pet food companies in India’s dynamic pet nutrition market.
According to L Catterton, the Indian pet food market is likely to grow about 20% annually during the next five years, achieving a value of more than US$1.2 billion by 2028, thanks to increased pet adoptions and urbanization throughout the country.
Statistics show that 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 pets.
Drools has committed itself to capitalize on these trends, nearly quadrupling its revenue during the past three years by scaling up its omnichannel business.
“Drools is dedicated to driving sustainable growth. 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,” said Fahim Sultan, founder of Drools. “
Drools also remarked that the company is keen to leverage its consumer insights, operating know-how, and commercial network to strengthen its brands further and recruit talent.
“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.
Drools offers a variety of products under its flagship brand (Drools®), and its other brands, including Pure Pet, Meat Up, Canine Creek, and Kitty Yum, functionally supporting pet health while addressing increasing consumer demand in India.
“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.
L Catterton also provides that Drools’ focus on product quality has helped it gain 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,” Sasidharan added.
The investment firm has supported 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.
This investment in Drools builds upon L Catterton’s dedication to the pet nutrition industry and marks its first foray into the Indian pet food market.