The purchase of the pet foods division from Purina PetCare India through a business transfer, intended to take effect on October 1, 2022, was approved by the board of Nestle India on Thursday.
All assets and liabilities associated with the pet food industry, including the Purina PetCare India personnel, would be transferred as part of the company transfer in the event of a slump sale. Purina PetCare India held cash and cash equivalents at Rs. 4.39 crore as of March 31, 2022, and debt and debt-like items worth Rs. 41 lakh. Purina PetCare India reported a revenue of Rs 36.08 crore for the fiscal year that ended on March 31, 2022. Suresh Narayanan, chairman and managing director of Nestle India, stated in a statement that the pet food industry has improved because to the growth in pet adoption following the epidemic. "Compared to when the business was first started in 2018, there are considerably more synergies with channel strategy evolution presently.
Purina PetCare India's pet food division has acquired popularity among Indian pet owners and created the pet food brands across key sectors while constructing a strong pet specialty distribution network, according to him.
In the future, Nestle will use its distribution network to help this business in India develop even faster, and starting with the last quarter of 2022 through December 31, it will be included in its portfolio.
“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. Dry dog and dry cat food has been marketed and sold by Purina PetCare India since December 2017 under names like Purina Supercoat, Purina Pro Plan, and Purina Friskies that are well-known around the world. In the first half of 2022, Purina PetCare India started marketing and selling wet cat foods under the name Fancy Feast. Because Purina lacks a production plant in India, the goods are imported from Nestle Thailand and Nestle Australia.