Major FMCG Nestle India announced on Thursday the acquisition of the pet food business of another subsidiary Purine Take care of an animal India for Rs 123.5 crore, giving him access to this fast growing business in the country.
The pet care business is valued at Rs 4,000 crore and the category is growing with a CAGR of 25%, said Narayanan during the company’s earnings call on Thursday.
”Pet adoption is on the rise, especially after the pandemic” Narayanan said, adding that pet care is among the fastest growing category right now. Today, there are approximately 30 million pets in the country and its growth is 11% per year.
According Narayanan“portfolio expansion into fast-growing segments like wet cat food” and expansion into Tier 1 cities and e-commerce plays a big role.
He has “the opportunity to unleash the full potential of business now,” he added.
Early in the day, Nestle India informed its board of directors of the approval of the acquisition of pet food company of Purine Take care of an animal India by transfer of business, from October 1, 2022.
”Society and Nestle The group has agreed on a value of Rs 123.5 crore as consideration for the purchase of PFB, which equates to around 3.4 times the turnover of Purine Take care of an animal India for the year ended March 31, 2022,” Nestle India said in a folder.
In 2021-22, Purine Petcare India’s revenue was Rs 36.08 crore.
In addition, PFB would expand its business from the wider distribution and supply chain network of Nestle Indiawhich will effectively reach more than 120 cities and accelerate organized commerce, he added.
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