In a major strategic move, global food giant Nestlé has acquired a minority stake in Drools, a leading Indian pet food company. This marks Nestlé’s first-ever direct investment in an Indian brand, signaling its serious intent to capture a share of the country’s rapidly expanding pet care market. The deal allows Drools to maintain its operational independence while giving Nestlé a strong foothold in a sector it has been watching closely.
Why Nestlé Is Tapping Into India’s Pet Market
This investment is a clear response to the explosive growth in India’s pet care economy. Pet ownership has surged, especially after the pandemic, with many Indians now treating their pets as integral family members. This cultural shift has directly fueled the demand for high-quality, packaged pet food.
The Indian pet care market is currently valued at over ₹5,000 crore ($600 million) and is projected to double by 2030. Food products dominate this space, making up nearly 75% of the entire market. For Nestlé, which owns global brands like Purina, this was an unmissable opportunity to partner with an established local leader.
Drools: A Homegrown Success Story
Founded in 2010 by Fahim Sultan, Drools has grown from a single brand into a pet food unicorn. The company has successfully catered to the Indian market by offering protein-rich, veterinarian-approved products for both dogs and cats.
Drools now operates six manufacturing facilities, sells its products through over 40,000 retail outlets, and exports to 22 countries. A key part of its success is its control over its supply chain, a rare achievement in the industry. Both companies have emphasized that Drools will remain strategically and operationally independent, suggesting the partnership is focused on synergy rather than a takeover.
A Smart Shortcut for the Swiss Giant
For Nestlé, this deal is a strategic shortcut into a complex market. Instead of building a presence from the ground up, the investment provides immediate benefits. Global brands often struggle with local pricing, distribution, and consumer preferences in India.
By partnering with Drools, Nestlé gets:
- Access to a local brand with a strong and loyal customer base.
- An established manufacturing and distribution network across India.
- A direct line to a rapidly growing consumer segment.
While the exact investment amount was not disclosed, industry sources estimate it to be in the range of $50 to $100 million.
The Soaring Growth of India’s Pet Food Sector
The numbers behind India’s pet food market highlight why this deal is so significant. The market has been growing at a remarkable pace, driven by a consumer shift from homemade meals to nutritionally balanced packaged food.
A recent report projects the market to reach ₹14,000 crore ($1.7 billion) by 2030.
| Year | Pet Food Market Size (₹ Cr) | % Growth YoY |
|---|---|---|
| 2020 | 2,500 | 18% |
| 2022 | 4,200 | 23% |
| 2024 | 5,100 | 21% |
| 2030 (projected) | 14,000 | – |
What This Means for the Broader Industry
This partnership is seen as a major validation of the Indian pet care industry. Experts believe it could trigger a wave of new investments, partnerships, and even acquisitions from other large consumer goods companies.
The entry of a giant like Nestlé is expected to intensify competition for other D2C brands like Heads Up For Tails and Supertails. However, it also brings more legitimacy and visibility to the sector, which could ultimately benefit the entire ecosystem. With fresh capital, Drools is also expected to expand its offerings beyond food into grooming and wellness products.
