Drools Pet Food Private Limited, a leading Indian pet nutrition brand, has achieved unicorn status following a minority investment by Nestlé S.A., the parent company of Nestlé India. This strategic partnership marks a significant milestone in India’s burgeoning pet care sector.
Drools: A Homegrown Success Story
Founded in 2010 by Fahim Sultan, Drools has emerged as a prominent player in India’s pet food industry. The company offers a diverse range of products under brands like Pure Pet, Meat Up, Canine Creek, and Kitty Yum. With a presence in over 40,000 retail outlets across India and exports to 22 countries, Drools has established a robust distribution network. The company operates six manufacturing facilities and maintains a warehousing footprint of 1.6 million square feet, employing approximately 3,400 individuals.
In June 2023, Drools secured a $60 million investment from private equity firm L Catterton, valuing the company at $600 million. The recent investment by Nestlé has propelled Drools’ valuation beyond the $1 billion mark, making it India’s first pet food unicorn.
Strategic Implications of Nestlé’s Investment
Nestlé’s minority stake in Drools signifies its entry into India’s rapidly growing pet food market. The investment is expected to provide Drools with access to Nestlé’s global expertise in pet nutrition, research, and development. Despite the investment, Drools will continue to operate independently, maintaining its strategic and operational autonomy.
This partnership is anticipated to accelerate Drools’ expansion plans, both domestically and internationally, and enhance its product offerings to meet the evolving needs of pet owners.
Financial Performance and Market Position
For the fiscal year ending March 2024, Drools reported a 50% increase in revenue from operations, reaching ₹714.90 crore, up from ₹474.62 crore in FY23. However, the company reported a net loss of ₹14 crore in FY24, compared to a profit of ₹27.65 crore in the previous fiscal year.
Drools claims to be the top seller in the pet food category on Amazon India, reflecting its strong online presence. The company’s comprehensive product portfolio, including high-protein, prescription, and value-for-money diets, caters to a wide spectrum of pet nutrition needs. Entrackr
Conclusion
Drools’ ascent to unicorn status, bolstered by Nestlé’s investment, underscores the growing potential of India’s pet care industry. As the company continues to innovate and expand, it is well-positioned to capitalize on the increasing demand for quality pet nutrition products in India and beyond.
