L Catterton, a US-based private equity firm, has recently acquired a minority stake in Drools Pet Food Private Limited, an Indian pet food company, for approximately $60m. This move marks L Catterton’s entry into the growing pet food market in India.
Drools specializes in the production of dog and cat food, offering products under various brands such as Drools, Pure Pet, and Kitty Yum. These pet food options are readily available at retailers throughout India and are also sold online via platforms like Amazon and Flipkart.
Anjana Sasidharan, a partner at L Catterton Asia, expressed excitement about entering India’s pet food market, which is experiencing significant growth. Sasidharan stated, “This is an exciting time to be entering the country’s pet food market, which we believe is at an inflection point. We look forward to working closely with the Drools team to further scale its business.”
Founder Fahim Sultan of Drools expressed hope that this partnership with L Catterton would unlock a new phase of growth for their brand. Sultan mentioned, “We are keen to leverage [L Catterton’s] consumer insights, operating know-how, as well as commercial network to further strengthen our brands and recruit talent. India’s developing pet market continues to mature across metros, as well as tier-one and tier-two cities, and we see many more years of secular growth ahead.”
Notably, L Catterton previously entered the Chinese market last year by investing in Shanghai Enova Pet Products, the owner of the Pure & Natural brand. In February, they further expanded their presence by investing in another Chinese brand, Partner Pet.
The Indian pet food market is expected to grow at a rate of 20% per year for the next five years and potentially reach $1.2bn by 2028. This growth can be attributed to factors such as increasing pet adoption due to smaller house sizes and urbanization. Additionally, rising income levels and the humanization of pets have led to a steady increase in expenditure on pet food. Previously, most Indian pet owners fed their animals home-cooked scraps and leftovers.
The founders of the Indian D2C pet food brand Henlo highlighted the shift of pets from being seen as merely functional to being regarded as companions in the Indian psyche. This change has been occurring over the past decade, with the COVID-19 pandemic further accelerating pet ownership as people sought companionship during lockdowns. Furthermore, pet ownership is expanding beyond top-tier cities to other regions with a population of more than 100,000.