TT&A, CAM, SAM navigate Nestle's unicorn stake in Drools

Nestlé S.A (the parent company of Nestlé India) has made an investment in Drools Pet Food Private Limited to acquire a minority stake.

This investment has propelled Drools to unicorn status, with a valuation exceeding $1 billion. The financial terms of the deal have not been disclosed.

Cyril Amarchand Mangaldas acted as the legal advisor to Drools and the Founder Group on this transaction.

The transaction team was led by Akshay Bhat (Partner) and S. Harish (Partner), with support from Shruthi Ashok (Principal Associate).

Shardul Amarchand Mangaldas & Co acted for Nestlé S.A. on this transaction.

The transaction team was led by Puja Sondhi (Partner), Srikant C.V. (Partner), Prerna Saroha (Senior Associate) and Rishika Sharma (Associate).

The due diligence team was led by Sondhi, Kriti Kaushik (Partner), Saroha, Sharma, and Lijin Varughese (Associate).

TT&A advised L Catterton (LCA Indus Pte. Ltd.), as an existing shareholder in Drools.

The transaction team consisted of Sachin Mehta (Partner), Swati Chauhan (Partner) and Aditi Somani (Senior Associate).

Drools will use portions of the investment to expand in a growing market and pursuant to investment by Nestle, the Company has become the first pet food brand unicorn. This marks Nestlé SA’s first-ever investment in an Indian brand.

Nestlé has clarified that this is a financial investment, and Drools will continue to operate independently, both strategically and operationally. This move aligns with Nestlé's broader strategy to expand its presence in the pet care sector, complementing its existing global brands like Purina.

Established in 2010 and headquartered in Chhattisgarh, Drools is a prominent player in India's pet food market. The company offers a diverse range of products under brands such as Drools®, 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 a significant market footprint. It operates six manufacturing units and maintains a warehousing space of 1.6 million square feet.

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