Why Investors Are Hungry for Opportunities in the Food & Beverages Sector

MUMBAI: The food scene in India is buzzing with activity. Investors, including firms and corporations, are eager to dive into the country’s vibrant food and beverage market, which covers both packaged foods and quick-service restaurants (QSR).

Despite a general slowdown in consumer spending, interest remains strong. Brands like Haldiram’s and Theobroma have attracted attention for potential deals. In fact, investors are looking at various established names such as Nik Baker’s and Wow! Momo.

Recent developments include a QSR pizza chain from northern India drawing investor interest. The ready-to-eat and ready-to-cook sectors are busy, with nearly a dozen deals in the pipeline, indicating a robust future for the industry.

Fireside Ventures, for example, has an expanding portfolio of food businesses. Their partner, Dipanjan Basu, mentioned the firm is focused on emerging brands. On a global scale, investors are increasingly looking at India, driven by favorable market conditions.

Arjun Anand, a managing director at Verlinvest, highlighted that sectors like consumer goods and healthcare are essential for global investors in India. Recent statistics show that investments could exceed $100 million this year due to growing consumer interests and tax incentives. For instance, earlier this year, major players like Temasek and Alpha Wave Global invested in Haldiram Snacks, valuing it at an impressive $10 billion.

Another noteworthy transaction involved the KFC operator, Devyani International, acquiring a majority stake in Biryani By Kilo. ChrysCapital also recently acquired a majority in Theobroma Foods, showcasing the growing trend of consolidation in the food sector.

The landscape for India’s food industry has shifted dramatically. More people are choosing to dine out or order in, thanks to higher disposable incomes and convenient delivery options via food aggregators. This transition from unorganized to organized businesses opens doors for homegrown brands to flourish.

Rajiv Batra from ChrysCapital emphasized the competition to identify market leaders that are outpacing the industry growth rate. According to Mayank Rastogi from EY, QSR ventures generally offer better returns on investment compared to casual dining.

Investors are keen on both national and regional brands. In packaged foods, mergers and acquisitions are becoming more common as established companies seek to expand their reach. The consumer goods sector is thriving, and many expect it to grow even more in the coming years.

For the food industry in India, the future looks promising. As more investment flows in and new deals take shape, the landscape will only become richer and more diverse.



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