The Nestle India board approves the pet foods business acquisition of Purina Petcare India for Rs 123.5 crore, with effect from October 1, 2022. Through this, Nestle can access the country’s fast-growing business. Purina Petcare India and Nestle India are subsidiaries of Swiss conglomerate Nestle S.A. The company owns 100% of Purina Petcare India and 62.76% of Nestle India.

Nestle Group and the company have agreed to a price of Rs 123.5 crore for purchasing PFB. This is roughly about 3.4 times the turnover of Purina Petcare India for the financial year ended March 31, 2022. Notably, Purina Petcare India’s turnover was Rs 36.08 crore in 2021-22.

This move could pave the way for Nestle India to access the fast-growing pet foods business as the latter grew at a compound annual growth rate (CAGR) of 39.4 per cent during 2018-21. Also, it is estimated that it will increase at a CAGR of 50 per cent from 2022-26.

Lately, the category has ensured its presence in general retail stores, e-commerce and even smaller towns. As pet adoption increases in India, it is believed that there remain significant opportunities with this business transfer.