Consumer And Retail Deal Activity Hits Three-Year High In Q1 2025: Grant Thornton

Deal activity in India’s consumer and retail sector surged to a three-year high in the first quarter of 2025, according to Grant Thornton Bharat’s latest quarterly deal tracker report.

The jump came as investors supported brands that blended tradition with innovation.

The deals included mergers and acquisitions (M&As) and private equity (PE) transactions.

Two billion-dollar deals led the charts in the March quarter. PE firm Temasek invested $1 billion for a 10% stake in Haldiram Snack Foods.

On the M&A side, Wilmar International invested $1.4 billion to raise its holding in Adani Wilmar (now AWL Agri Business) from 44% to nearly 75%.

These deals reflect growing investor confidence in India’s food processing sector.

“India’s consumer and retail sector is entering a dynamic growth phase. M&A and private equity investments are rising across food & beverages, personal care, and e-commerce,” said Naveen Malpani, partner and consumer industry leader at Grant Thornton Bharat.

He noted strong momentum in the food and beverage segment as digital distribution expands.

Strong Growth In Deal Value And Volume

The January-March quarter saw deal values near $4 billion across 139 transactions. This was triple the $1.28 billion value from Q1 2023 and double the $1.74 billion from Q1 2024.

Deal volumes in the same periods were 78 and 102, respectively.

Although the 2025 numbers are below the post-pandemic peak of Q1 2022—$4.28 billion from 171 deals—experts say the current growth is notable after inflation and urban slowdown hurt the sector in 2023 and 2024.

“There is investor appetite, but bid-ask valuation gaps remain high,” said Nitin Gupta, partner, investment banking advisory, EY India.

He pointed to strong investor interest in food & beverages, healthcare, and personal care, but warned of risks from the ongoing US-China trade war.

Experts also cited urbanization, premiumization, and digital reach in tier-II and III markets as key factors reshaping consumer behavior and drawing investor focus.

Strategic consolidation also picked up in Q1. HUL acquired the D2C brand Minimalist. ITC bought the frozen food firm Prasuma.

Adani Wilmar purchased GD Foods, maker of the Tops brand. Kandhari Global Beverages expanded by acquiring a bottling plant in north Gujarat.

“We expect capital inflows and consolidation to continue as companies show digital agility and strong consumer connect,” said Malpani.

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