Merger and acquisition, private equity deals in consumer sector reach 3-year peak of $4 billion in January to March

The consumer and retail sector in India witnessed a significant surge in mergers and acquisitions (M&As) and private equity (PE) investments in the first quarter of 2025, reaching a three-year high of almost $4 billion, according to the latest quarterly report by Grant Thornton Bharat.

Two major investments stood out in this period: Temasek, a PE firm based in Singapore, invested $1 billion to acquire a 10% stake in Haldiram Snacks, while Wilmar International expanded its share in Adani Wilmar, now known as AWL Agri-Business, from 44% to nearly 75% through a $1.4 billion deal. These substantial investments reflect a growing confidence among investors in India’s food processing and consumer goods sectors.

Compared to previous years, the total value of deals in the first quarter of 2025 more than tripled from $1.28 billion in Q1 2023 and doubled from $1.74 billion in Q1 2024. The number of deals also saw a significant increase, rising to 139 transactions compared to 78 in Q1 2023 and 102 in Q1 2024.

Grant Thornton Bharat’s Partner and Consumer Industry Leader, Naveen Malpani, emphasized the sector’s dynamic growth, with a notable uptick in M&A and PE investments across segments such as food & beverages, personal care, and e-commerce. Malpani highlighted the strong momentum in the food and beverage industry, driven by consumer demand for quality products and brands leveraging digital channels for distribution. He foresaw continued strategic consolidation and capital influx as businesses showcase resilience, digital adaptability, and robust consumer relationships.

The trend of consolidation was further evident through strategic acquisitions by key players in the industry. Hindustan Unilever (HUL) acquired D2C skincare brand Minimalist, ITC took over the frozen foods brand Prasuma, and Adani Wilmar acquired GD Foods, the producer of Tops sauces and pickles.

The report underscores the overarching positive outlook for India’s consumer and retail sector, with growing investor interest driven by a combination of sector-specific opportunities and overall economic growth trends. As the industry continues to evolve and adapt to changing consumer preferences and market dynamics, strategic investments and acquisitions are expected to play a crucial role in shaping the landscape of the sector in the coming quarters.