FMCG major Nestle announced on Thursday that it will acquire Purina Petcare India’s pet food business for Rs 123.5 crore, giving Nestle access to the country’s fast-growing business.

Both Nestle India and Purina Petcare India are subsidiaries of Swiss major Nestle SA

Nestle India’s board of directors on Thursday “approved the acquisition of Purina Petcare India’s Pet Foods Business (PFB) by business transfer effective October 1, 2022,” according to a regulatory filing.

Nestle SA owns 100 percent of Purina Petcare India and 62.76 percent of Nestle India.

“The Company and Nestlé Group have agreed a value of Rs.1.23 billion in consideration for the purchase of PFB, which is approximately 3.4 times Purina Petcare India’s sales for the 31st March 2022 fiscal year,” Nestle India said in the filing.

In 2021-22, Purina Petcare India revenue was Rs.36.08 crore.

The move gives Nestlé India access to the fast-growing pet food business, which has grown at a compound annual growth rate (CAGR) of 39.4 percent over 2018-21 and is expected to grow 50 percent from 2022. 26

“Post-pandemic, the category has accelerated in smaller cities and in general retail and e-commerce. With a faster adoption rate of pets, as well as opportunities to expand the portfolio and city, there are significant synergies in integrating PFB from Purina Petcare India into Nestle India to help realize its full potential,” it said.

Also, PFB would expand its business out of Nestle India’s broader distribution and supply chain network, which will effectively reach over 120 cities and accelerate organized trade, she added.

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