Nestlé SA enters Indian pet food market with stake in Drools

INDIA – Nestlé SA, the global food and beverage conglomerate headquartered in Switzerland, has acquired a minority stake in Drools Pet Food Private Limited, marking its first investment in an Indian brand. 

The strategic move underscores Nestlé’s growing interest in the booming pet care market, although the financial terms of the deal were not disclosed.

Announced on 26th May 2025, the deal will see Drools remain strategically and operationally independent. 

Nestlé SA emphasised in a statement on its website that the move is a financial investment, with no changes to the company’s operational control. 

The Swiss company, known globally for household brands like Kit Kat and Milo, said no additional terms of the agreement would be made public. 

Nestlé entered the Indian pet food market via Purina Petcare India in 2017 and acquired full control of the entity in 2022 in a ₹125.3 crore (approximately US$14.7 million) deal.

Drools thrives in high-protein and prescription diets

Founded in 2010 by entrepreneur Fahim Sultan, Drools has rapidly grown into one of India’s largest pet food brands, specialising in high-protein and prescription diets. Its products are sold across more than 40,000 retail outlets and exported to 22 countries. 

The company operates six manufacturing units and maintains a strong presence in India’s e-commerce space, especially on platforms like Amazon. It is also a leading player in the country’s cat food segment.

This latest investment follows a significant US$60-million funding round in 2023 led by L Catterton, a private equity firm backed by LVMH. 

That deal gave the investor a 10% stake in Drools, reflecting one of the largest inflows into India’s pet care industry at the time. Following its recent valuation, Drools stated that it had joined the ranks of India’s unicorns.

In tandem with this investment, India’s pet care industry has seen explosive growth in recent years, particularly after the COVID-19 pandemic spurred a rise in pet ownership. 

The country is now home to approximately 100 million pets, with around 30 million residing in households. The domestic pet food market, valued at US$551 million, is forecast to reach US$1.8 billion within the next eight years.

Nestlé to strengthen R&D capabilities in human, pet nutrition

In parallel with its investment in Drools, Nestlé is ramping up its innovation capabilities to stay ahead of shifting consumer needs in both human and pet nutrition. 

The company recently unveiled plans to enhance its R&D expertise in biotechnology and create a “first-of-its-kind” deep tech innovation centre at its System Technology Center in Orbe, Switzerland. 

Set to open in the first half of 2026, the facility aims to develop new generations of AI, sensors, robotics, and precision nutrition technologies.

“These new capabilities in biotech and deep tech will fuel growth by meeting changing consumer needs and accelerating the digital transformation of Nestlé,” said Laurent Freixe, chief executive officer of Nestlé. 

“This is about putting the Nestlé Virtuous Circle in action: unlocking investment through efficiencies to drive more focused and impactful innovation and growth.”

Nestlé’s chief technical officer, Stefan Palzer, added that the industry-leading biotechnology capabilities will deliver new ingredients with clinically proven bio-efficacy for precision nutrition for people and pets along their entire lifespan. 

“The upscaling of our unique capabilities in deep tech is key to maximising efficiency in innovation and operations.”

Nestlé’s growing interest in the pet nutrition space is evident. In 2024, its pet care division reported sales of 18.9 billion Swiss francs, accounting for 20.7% of the company’s global revenue.

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