India’s food and beverages sector is witnessing a sharp surge in dealmaking, with large corporate and private equity investors racing to capture growth in a market being reshaped by urbanisation, rising incomes and evolving consumption habits.
Recent developments point to heightened interest from strategic buyers. Reliance Industries has renewed its push into packaged foods, with its consumer products arm in advanced talks to acquire a majority stake in Udhaiyams Agro Foods, a ₹668-crore manufacturer of staples, snacks and ready-to-cook breakfast mixes. While the deal value has not been disclosed, the move underscores Reliance’s intent to rapidly scale its presence in everyday food categories.
This follows Reliance Retail’s decision to transfer its FMCG business into New RCPL, a wholly owned subsidiary of Reliance Industries, to sharpen focus on its growing portfolio of food and beverage brands. These include beverages such as Campa, Sure water and Spinner sports drinks, alongside food brands like Sil jam, Lotus Chocolate and Alan’s Bugles chips. The restructuring reflects a strategy to build scale in mass-consumption categories where brand strength and distribution are key.
Global players are also stepping up. Orkla India, the Indian arm of Norwegian consumer goods group Orkla and owner of brands such as MTR and Eastern, is actively scouting for acquisitions to expand its portfolio. The company has said it is banking on the growth of quick-commerce platforms and rising demand for ready-to-eat meals to drive double-digit growth, highlighting India’s appeal as a rare large market offering volume-led expansion.
Dealmaking momentum has been reinforced by several large-ticket transactions. According to Equirus Capital, mergers and acquisitions in the consumer goods and retail sector hit a four-year high during January–September 2025, led by food and beverages. Notable deals include Tilaknagar Industries’ $486 million acquisition of the Imperial Blue whisky brand from Pernod Ricard and Wilmar International’s $832 million stake purchase in AWL Agri Business.
Private equity investors are equally active across the food value chain. Funds such as Apax Partners, Kedaara Capital and Verlinvest have been in discussions to acquire minority stakes in iD Fresh Food, reflecting investor preference for scaled, brand-led businesses rooted in daily consumption. During the year, Temasek, IHC and Alpha Wave Global acquired minority stakes in Haldiram Snacks Food at a $10 billion valuation, while ChrysCapital took a controlling stake in Theobroma Foods. In food services, Devyani International acquired a majority stake in Sky Gate Hospitality, the parent of Biryani By Kilo.
Equirus Capital data shows that India’s consumer sector recorded 115 M&A deals in the first nine months of 2025, with food and beverages accounting for the largest share. By value, consumer-sector deals crossed ₹21,200 crore during the period, with nearly three-quarters concentrated in F&B.
Strong structural drivers continue to underpin investor interest. Industry estimates project India’s packaged food market to grow from $121.3 billion in 2024 to $224.8 billion by 2033, driven by urbanisation, rising demand for convenience foods and the expansion of online delivery platforms.
Together, the flurry of transactions and robust growth outlook underline why India’s food and beverages sector has emerged as a focal point for both strategic buyers and financial investors, with deal activity expected to remain strong as organised players gain ground.