The board of Nestle India, on Thursday, approved the acquisition of the pet foods business from Purina PetCare India through a business transfer, proposed with effect from October 1, 2022.
The business transfer on a slump sale would entail the transfer of all assets and liabilities related to the pet food business including employees of Purina PetCare India. As of March 31, 2022, Purina PetCare India held cash and cash equivalent of Rs 4.39 crore and debt and debt-like items of Rs 41 lakh. For the financial year ended March 31, 2022, Purina PetCare India had a turnover of Rs 36.08 crore.
In a statement, Suresh Narayanan, chairman and managing director, of Nestle India said that the pet food business has evolved positively with pet adoption on the rise post-pandemic. “There are far greater synergies with evolution in channel strategies now than when the business was launched in 2018. The pet food business of Purina PetCare India has gained traction amongst Indian pet owners and established the pet food brands across key segments while building a robust pet speciality distribution network,” he said.
Going forward, Nestle will be leveraging its distribution network to further accelerate the growth of this business in India and it would be a part of its portfolio from the last quarter ending December 31, 2022.
“Nestle S.A., the holding company, has 100% ownership of Purina PetCare India and 62.76% ownership of Nestle India. Therefore, Purina PetCare India and Nestle India are fellow subsidiaries of Nestle S.A., Switzerland. The transaction is done at arm’s length on the basis of Independent Valuation Report of PwC Business Consulting Services LLP,” the company said in a BSE filing.
Since December 2017, Purina PetCare India has been undertaking the marketing and sale of dry dog and dry cat foods under globally recognised brands such as Purina Supercoat, Purina Pro Plan and Purina Friskies. Purina PetCare India has in the first half of 2022 commenced marketing and sale of wet cat foods under the brand Fancy Feast. The products are imported from Nestle Thailand and Nestle Australia and Purina does not have any manufacturing facility in India.
