Friday, May 30, 2025

Nestlé Buys Into Drools as Pet Food Craze Booms in India

Nestlé just made a move that says one thing loud and clear — it’s serious about pets in India.

In a rare strategic step, Nestlé S.A. has acquired a minority stake in Drools, the Indian pet food company that recently joined the unicorn club. This is Nestlé’s first-ever direct investment in an Indian brand. It’s not a full takeover, and Drools will still run the show — but the deal signals a turning point for both the Swiss multinational and India’s booming pet economy.

Betting on Bowls: Why Nestlé Is Sniffing Around Pet Care in India

This isn’t just a pet project. Nestlé’s play comes at a time when India’s pet care market is exploding.

Pet ownership across Indian cities has surged since the pandemic. More people now treat their cats and dogs like family. That shift has fueled a sharp rise in demand for premium pet food, treats, supplements — you name it.

The Indian pet care market is currently valued at over ₹5,000 crore ($600 million) and is expected to double by 2030. Food alone makes up nearly 75% of that market, according to research by Bonafide Research. Nestlé, which already operates global pet food brands like Purina, clearly sees this as an opportunity it can’t afford to miss.

And Drools? It’s already leading the pack.

drools pet food india factory retail store packaging

Inside Drools: The Unicorn That Grew From Scratch

Founded in 2010 by entrepreneur Fahim Sultan, Drools started off small — just one brand trying to offer better pet food options to Indian consumers.

Fifteen years later, it’s a unicorn.

Drools now operates six manufacturing units across India. It sells through more than 40,000 retail points and exports to 22 countries. The brand focuses heavily on protein-rich, vet-approved recipes for both cats and dogs. Drools also prides itself on keeping most of its supply chain in-house — a rare feat in this space.

But Drools isn’t handing over the reins. The company will remain strategically and operationally independent — a detail both sides have been keen to stress. That suggests this deal is more about synergy than control.

What’s in It for Nestlé?

To be fair, Nestlé isn’t new to pet care. It owns global heavyweights like Purina, Friskies, and Pro Plan. But India has been more of a blind spot till now.

With this deal, Nestlé gets:

  • A local partner with strong brand recall

  • On-ground manufacturing and distribution expertise

  • Access to a rising consumer base without building from scratch

It’s a shortcut — and a smart one.

Global brands entering India often face tough competition from local players who understand pricing, preferences, and logistics better. Drools is already entrenched. Partnering with them lets Nestlé bypass a lot of red tape, while still benefiting from the market’s growth.

Nestlé didn’t disclose the exact size of the investment. But industry chatter suggests it could be anywhere from $50–$100 million.

Growth, Growth, and More Growth

Drools has grown over 40% year-on-year for the last three years. Much of that growth has been fueled by India’s shift from unbranded or homemade pet food to packaged, nutritional products.

A recent report from IMARC Group puts it like this: India’s pet food market is expected to reach ₹14,000 crore ($1.7 billion) by 2030, growing at a CAGR of 14.2% between 2024 and 2030.

Here’s a quick look at India’s pet food surge:

Year Pet Food Market Size (₹ Cr) % Growth YoY
2020 2,500 18%
2022 4,200 23%
2024 5,100 21%
2030 (projected) 14,000

The numbers speak for themselves.

Industry Buzz and What This Could Mean for Others

Industry insiders are calling this a big moment.

“It’s a validation of how serious the Indian pet care story has become,” said one senior executive at a rival firm, asking not to be named.

Meanwhile, D2C pet brands like Heads Up For Tails, Supertails, and Canine India are watching closely. With Nestlé entering the field, the competition might get fiercer. But it also brings legitimacy — more investment, more visibility, and maybe even some price wars.

Some insiders even believe this could trigger a wave of partnerships and acquisitions in the space. If Nestlé’s bet pays off, other FMCG giants may follow.

What Drools Says — And What It’s Not Saying

CEO Fahim Sultan hasn’t commented publicly beyond the official press release, which stressed continuity and independence.

But folks close to the matter say Sultan was clear from the beginning — any deal must preserve Drools’ autonomy and Indian identity. The brand’s core appeal lies in being local, affordable, and high-quality. Any attempt to globalize too fast or change its DNA could backfire.

So far, it looks like Nestlé is respecting that line.

Also, Drools has hinted at expanding its product lines — not just food, but maybe grooming, wellness, and accessories too. With fresh capital and global mentorship, that seems very likely.

Davis Emily
Davis Emily
Emily is a versatile and passionate content writer with a talent for storytelling and audience engagement. With a degree in English and expertise in SEO, she has crafted compelling content for various industries, including business, technology, healthcare, and lifestyle, always capturing her unique voice.

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