21 Jun 2023
Drools and L Catterton Partnership: Elevating India's Pet Food Industry through Substantial Funding and Strategic Expansion.
Drools, the leading pet food brand in India, has secured a substantial funding round from L Catterton, the renowned consumer growth investor associated with LVMH. The private equity firm has invested an impressive $60 million in Drools, representing a 10% stake in the company and making it one of the largest investments ever made in the Indian pet care industry.
This collaboration marks an important milestone for Drools as it taps into the expertise and global experience of L Catterton in expanding pet food businesses. With a track record of success in this sector worldwide, L Catterton's entry into the Indian market is highly significant.
Established in 2010 by Fahim Sultan, Drools Pet Food Pvt. Ltd. has risen to prominence as a multinational pet food company and currently holds a remarkable 38% market share in India. Its exceptional growth has propelled it to become the market leader in the country's pet care industry. Expanding its presence beyond India, Drools now exports its products to more than 22 countries, including Australia, Israel, and the UAE. Moreover, with plans to enter the Russian market this year and the United States in the near future, Drools is poised for further international expansion.
Supported by a dedicated workforce of 1,800 employees out of a total of 3,400, Drools has built an extensive distribution network of 34,000 retail outlets across India. Its product offerings, encompassing a diverse range of 650 stock-keeping units (SKUs), cater to a wide variety of pets, with a significant portion consisting of prescription diets. Notably, Drools has also emerged as India's leading cat food brand, further solidifying its position in the market.
Drools' manufacturing capabilities are unmatched in the industry, boasting three advanced production facilities and a consolidated warehouse covering an expansive area of 8 lakh square feet. This robust infrastructure enables the company to meet the growing demand for high-quality pet food products in India and beyond.
Dr. Shashank Sinha, CEO and Veterinarian at Drools Pet Food Pvt. Ltd., expressed great satisfaction with the recent funding secured by the company, recognizing its significant impact on their long-term plans. He conveyed his excitement, stating, "We are delighted to have successfully secured this funding, as it will play a crucial role in driving our company's growth and expansion strategies. With the support of our new partner, we will enhance our production capabilities, expand our retail presence, and invest strategically in marketing initiatives. This investment is a testament to our strong business model and unwavering commitment to providing exceptional pet food products to our esteemed customers."
Anjana Sasidharan, a partner at L Catterton Asia, expressed her perspective on Drools, stating, "Drools' emphasis on product quality has positioned it as a brand known for offering high protein content at affordable price points, fostering a dedicated customer base. As we enter India's pet food market, which we believe is experiencing significant growth, we are thrilled to collaborate closely with the Drools team to expand their business further. It is an exciting opportunity, and we are confident in the brand's potential for continued success."
The infusion of $60 million from L Catterton is a testament to Drools' innovative approach and will propel its strategic expansion plans. The funding will be utilized to bolster manufacturing capabilities, ensuring a steady supply of top-notch pet food products. Furthermore, it will accelerate the company's retail strategy, augment its marketing efforts, and facilitate the recruitment of top talent to support future growth.
Drools' collaboration with L Catterton not only validates its position as an industry frontrunner but also paves the way for a promising future. With a strong foundation, a commitment to quality, and the support of a globally renowned investor, Drools is poised to further cater to the evolving needs of discerning pet parents in India and beyond.