US private equity firm Advent International is looking to sell its majority stake in DFM Foods, the owner of the Crax snack brand. The firm has initiated talks with several major consumer goods companies and other investors. This move comes as the company reports strong sales growth and follows its delisting from Indian stock exchanges in early 2023.
Advent International, a US-based private equity firm, is moving to divest its 96.63% stake in DFM Foods, a prominent player in the Indian packaged snacks market. The company is best known for its flagship Crax brand, alongside other snack variants like Curls, Fritts, and Natkhat. Reports indicate that the firm has appointed Avendus Capital and EY to oversee the sale process, with the objective of finalizing an agreement by December 2026.
The potential divestment has attracted interest from both strategic industry players and other private equity firms. Companies including ITC Limited, Marico Limited, Britannia Industries, Lotte, and Liwayway Foods are reportedly among those involved in preliminary discussions. Financial investors such as Kedaara Capital and CVC Capital Partners are also said to be evaluating the opportunity.
Advent International originally entered the business in 2019 by acquiring a majority stake from WestBridge Capital for approximately $118.8 million. Following the acquisition, the company underwent significant structural changes, culminating in its delisting from the Indian stock exchanges in January 2023. Since then, the company has operated as a private entity, allowing it to focus on operational expansion away from public market scrutiny.
The company has demonstrated strong financial performance recently, reporting a 27.5% increase in total sales for FY25, reaching ₹705.8 crore. Projections for FY26 suggest that sales growth may exceed 30%, reflecting robust demand for its product portfolio. DFM Foods, which was established in 1984, has expanded its reach through multiple manufacturing facilities across India and has been diversifying its product range to include millet-based and ethnic snacks to align with shifting consumer preferences.
This sale process occurs against the backdrop of an active mergers and acquisitions environment in the Indian consumer goods sector. The industry is currently defined by stiff competition and the rapid adoption of quick commerce channels, which have changed how snack brands reach consumers. Large fast-moving consumer goods companies are frequently looking to acquire established brands to consolidate market share and enhance their distribution networks. The ultimate success and valuation of this deal will be determined by the brand's competitive advantage in its distribution network and its ability to maintain its growth trajectory amidst broader sector competition. Interested parties will likely evaluate how well the company can balance its traditional snack offerings with the emerging consumer demand for healthier, value-added products.