M&A and PE Investments Rose 3 Year High in Indian Consumer Sector in Q12025

During Q1FY25, Mergers and acquisitions (M&A) along with private equity (PE) investments in India’s consumer and retail sector has reached its three-year high to ~$4 billion, according to Grant Thornton Bharat’s latest quarterly deal tracker.

Major Transactions in Q12025

Leading the activity were 2 major transactions: Singapore-based PE firm Temasek invested $1 billion for a 10% stake in Haldiram Snacks, while Wilmar International raised its stake in Adani Wilmar (now renamed AWL Agri-Business following the Adani Group’s exit) from 44% to nearly 75% through a $1.4 billion deal. These large-scale investments indicate rising investor confidence in India’s food processing and consumer goods sectors.

The total deal value in Q1 2025 was 3 times higher than the $1.28 billion recorded in Q1 2023, and more than double the $1.74 billion seen in Q1 2024. The volume of deals also rose sharply, hitting 139 compared to 78 in Q1 2023 and 102 in Q1 2024.

Growing Food & Beverage Segment

The food and beverage segment, in particular, is witnessing strong growth, driven by rising consumer demand for better-quality products and increased digital adoption by brands. We anticipate continued strategic consolidation and capital inflows, as companies showcase resilience, digital capabilities, and strong consumer engagement.

This consolidation trend was reflected in several strategic acquisitions: Hindustan Unilever (HUL) took over direct-to-consumer skincare brand Minimalist, ITC acquired frozen food brand Prasuma, and Adani Wilmar purchased GD Foods, known for its Tops range of sauces and pickles.

Conclusion

The surge in deal activity during Q1 2025 signals a renewed dynamism in India’s consumer and retail sector, driven by strong investor appetite, evolving consumer preferences, and digital-led business models.

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