Private equity firm Advent International has initiated discussions to sell its controlling stake in DFM Foods, the maker of the popular Crax snack brand, in what could become one of the largest transactions in India’s packaged snacks sector this year.
According to industry sources, Advent is looking to divest its entire 96.63% stake in the company and has begun engaging both strategic buyers and private equity investors. The deal is expected to be concluded by December.
Among the strategic players reportedly evaluating the acquisition are ITC, Marico, Britannia Industries, Lotte and Liwayway Foods, the company behind the Oishi snack brand. Private equity firms Kedaara Capital and CVC Capital Partners are also said to be in the race. Advent has appointed Avendus Capital and EY as advisers to manage the sale process.
Advent acquired a majority stake in DFM Foods from WestBridge Capital in 2019 for approximately $118.8 million and subsequently took the company private through a delisting in January 2023. The proposed exit comes after a strong turnaround in the company’s performance.
DFM Foods reported a 27.5% increase in revenue to ₹705.8 crore in FY25, while industry executives indicated that sales grew by more than 30% in FY26. Founded in 1984, the company has built a diversified portfolio comprising Crax, Curls, Fritts and Natkhat, spanning potato chips, extruded snacks, ethnic snacks and millet-based products. Its manufacturing facilities are located in Ghaziabad, Greater Noida, Kashipur and Howrah.
Industry observers believe the acquisition will be driven not only by valuation but also by DFM Foods’ strong brand equity, nationwide distribution network and manufacturing capabilities. The company’s growing presence in healthier snack categories, including millet-based products, further enhances its appeal at a time when consumers are increasingly seeking better-for-you snacking options.
The proposed transaction reflects the broader consolidation underway in India’s packaged food industry, where leading FMCG companies and financial investors are competing to acquire established regional brands with scalable operations and strong market presence. The expansion of quick commerce, rising demand for premium snacks and increasing competition from digital-first brands have accelerated deal activity across the sector.
According to EY’s M&A India Report 2026, the consumer products and retail segment recorded 393 transactions in 2025, making it the country’s most active sector for mergers and acquisitions. Recent marquee deals include investments in Haldiram Snacks Food by L Catterton, Temasek, Alpha Wave Global and IHC, General Atlantic’s acquisition of a 7% stake in Balaji Wafers, and Advent’s own $150 million investment in Iscon Balaji Foods.
With India’s packaged snacks market projected by IMARC Group to grow from ₹50,590 crore in 2025 to over ₹1.03 lakh crore by 2034, the sale of DFM Foods is expected to attract strong interest from investors looking to strengthen their presence in one of the country’s fastest-growing food categories.