Motilal Oswal Private Equity (MO Alts), the alternative investment arm of Motilal Oswal Financial Services, has announced a significant investment in the Indian packaged sweets market. MO Alts has acquired a 25% stake in Lal Sweets, a Bengaluru-based manufacturer of traditional Indian sweets and snacks, for Rs. 330 crore.
Lal Sweets, known for its wide range of Indian sweets, bakery items, and savory snacks, has established a strong presence through an omni-channel strategy. The company retails its products in 4,000 modern trade outlets and 7,000 general trade outlets, as well as on quick-commerce platforms, e-commerce platforms, and its own website. Additionally, Lal Sweets operates a travel-focused retail business with 40 outlets across various airports in India.
The investment by MO Alts highlights the rapid growth and potential of India’s packaged sweets sector, driven by rising consumer demand for convenience, hygiene, and quality products. Vijay Dhanuka, Managing Director and Head of the Consumer Sector at MO Alts, noted the increasing shift from unbranded to branded products in this space.
Lal Sweets was advised by Veda Corporate Advisors on the deal. Prateek Athwani, promoter of Lal Sweets, emphasized the company’s commitment to delivering authentic and consistent taste to consumers.