M&A and private equity activity in India’s consumer and retail sector surged to a three-year high in the first quarter of 2025. Driven by urbanisation, digital growth, and investor interest in F&B and personal care, major deals included Temasek’s investment in Haldiram and Wilmar’s stake increase in Adani Wilmar.
In the first quarter of calendar year 2025, deal activity in the domestic consumer and retail markets surged to a three-year high, according to Grant Thornton Bharat’s latest quarterly deal tracker report. The deals include mergers and acquisitions (M&As) and private equity (PE) transactions.
Mr. Naveen Malpani, partner and consumer industry leader, Grant Thornton Bharat, stated, “India’s consumer and retail sector is entering a dynamic phase of growth, with M&A and private equity investments surging across high-potential segments such as food & beverages, personal care, and e-commerce. In particular, the F&B space is seeing strong momentum, as consumers seek better products and brands embrace digital distribution to reach them.”
The sector witnessed nearly US$ 4 billion in deal value across 139 transactions, a significant increase compared to US$ 1.28 billion (78 deals) in Q1 2023 and US$ 1.74 billion (102 deals) in Q1 2024. Although slightly below the post-pandemic peak of Q1 2022 (US$ 4.28 billion across 171 deals), the resurgence in 2025 signals renewed investor confidence after two challenging years marked by inflation and an urban slowdown.
The deal surge was driven by increased investor interest in brands blending tradition and innovation, alongside rising urbanisation, premiumisation, and expanding digital access in tier 2 and 3 cities. These macro trends are reshaping the consumer landscape and prompting strategic investments and consolidations.
“We expect strategic consolidation and capital inflows to continue within the consumer and retail sectors as businesses demonstrate resilience, digital agility and strong consumer connect,” Mr. Malpani said.
Leading the deal activity in the March quarter were two major billion-dollar transactions: private equity firm Temasek’s US$ 1-billion investment for a 10% stake in Haldiram Snack Foods, and Wilmar International’s US$ 1.4-billion acquisition to boost its shareholding in Adani Wilmar—from 44% to nearly 75%. Following the Adani Group’s exit, the company has been rebranded as AWL Agri Business. These high-value deals highlight increasing investor confidence in India’s rapidly expanding food processing sector.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.