Consumer sector-focused private equity investor Lighthouse Funds has invested Rs 700 crore in Parsons Nutritionals, a contract manufacturer of packaged food and beverages. This was the third investment from Lighthouse’s newly raised fourth private equity fund, Lighthouse India Fund IV. Lighthouse co-investors International Finance Corporation (IFC), Evolvence India, HDFC AMC’s Fund of Funds, and other family offices participated in the round, the fund said in a statement.
Founded in 2002, Parsons contract manufactures cookies, biscuits, chocolates & confectionery, malted beverages, and ready-drink mixes. The company had recently entered into personal care categories such as shampoos and soaps.
Speaking on the fundraise, Swapandeep Mann, Promoter and CEO, Parsons Nutritionals said, “Leveraging their (Lighthouse) extensive network and experience in the consumer space, we envision significantly expanding our presence in India and across global markets. On the back of strong tailwinds in the Indian manufacturing sector, we’re focused on doubling down on our capabilities and replicating the deep partnerships with many more premier brands.”
The latest funding is the first external round raised by Parsons from a private equity investor. The company said it will deploy the capital towards expanding its manufacturing capacities in existing and newer product categories for its existing and new clients.
“Parsons has been a preferred manufacturing partner for many large consumer companies and has grown over the years to command a dominant wallet share in the categories in which it operates. With years of manufacturing excellence underpinned by a strong focus on product quality, operational efficiency and distributed manufacturing, Parsons is uniquely positioned to benefit from the macro tailwind of increased consumption and outsourcing trends,” said Sachin Bhartiya, Co-Founder and Partner, Lighthouse Funds.
Lighthouse, a mid-market private equity firm has been making investments in India since 2007. The fund has backed over 30 companies across consumer brands, healthcare, and speciality manufacturing including Unibic, Bikaji, Wow! Momo, Kama Ayurveda, Nykaa, Duroflex Mattress, Fabindia, Ferns N Petals, Dhanuka Agritech, and more.