Why has Nestlé decided to invest in the Indian pet market?
Purina Petcare, launched in the country in 2017 as a separate entity, has now been acquired by the multinational for $15.7 million as part of its premiumisation strategy.
The board of Nestlé India “approved the acquisition of Pet Foods Business (PFB) from Purina Petcare India through business transfer” with effect from October 1, 2022.
In the regulatory filing, the multinational explains that the value of the purchase of PFB represents around 3.4 times the turnover of Purina Petcare India for the financial year that ended on March 31, 2022, which was $4.5 million.
Purina’s business in India consists of a network of 50 distributors and 185 suppliers in 46 cities, the company said.
A fast-growing market
Nestlé’s numbers show that the national pet food market is worth $508.9 million and is currently growing at 25%, making it one of the highest growth categories.
Suresh Narayanan, Chairman and Managing Director of Nestlé India, noted to GlobalPETS that this acquisition will provide access to the fast-growing pet foods business.
“The pet food business has evolved very positively and has an exciting future with pet adoption on the rise post-pandemic. There are far greater synergies with evolution in channel strategies now than when the business was launched in 2018,” he stated.
The company recently told analysts that it wants to focus on “premiumisation” of the pet food business after this takeover.
You can find an overview of the pet industry in India, including the latest data and trends, here.
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