L Catterton extends pet food focus to India

The company has almost quadrupled its revenue over the past three years, tapping into secular growth in demand for pet food. The industry is projected to post compound annual growth of 20% over the next five years, surpassing USD 1.2bn by 2028, according to a statement. Contributing factors include rising income levels and the humanisation of pets, as well as urbanisation and smaller household sizes.

Founded in 2010, Drools is an omni-channel pan-India pet food business. In addition to the eponymous Drools brand, its dog and cat food portfolio includes Pure Pet, Meat Up, Canine Creek, and Kitty Yum. Initially focused on dry food, the company expanded into wet food, treats, and nutritional supplements.

It has also established an international footprint. Drools shipped its first consignment of dry food to Sri Lanka in 2012 and then to Nepal later the same year. Now the company exports to over 20 countries.

"What truly differentiates Drools is its ability to manufacture high-quality products across the price ladder and make them available to pet parents via every relevant channel, be it online on Amazon or Flipkart, or offline in over 34,000 points of sale spanning specialty vet shops, veterinary clinics, and general trade stores," said Anjana Sasidharan, a partner at L Catterton Asia.

"Its focus on product quality has helped it become a brand that has gained a reputation for providing high protein content at value-for-money price points, cultivating a very loyal base of customers. This is an exciting time to be entering the country's pet food market, which we believe is at an inflection point, and we look forward to working closely with the Drools team to further scale its business."

L Catterton, which has made numerous pet food investments globally, completed its second China deal in February. The target, Partner Pet, is a leading domestic player in the premium freeze-dried pet food space. Last year, the firm backed Shanghai Enova Pet Products, owner of the premium pet food brand Pure & Natural.

L Catterton, a consumer sector specialist, is currently deploying its third Asian fund, which closed on USD 1.45bn in late 2019. Last year, it raised USD 360m for a continuation vehicle comprising structured minority interests in investments held by the fund. A portion of the proceeds was earmarked to be recycled into new investments.

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• Topics
• South Asia
• Expansion
• Consumer
• India
• Growth capital
• L Catterton