Advent International is seeking to sell its 96.63% stake in DFM Foods, drawing interest from major FMCG firms and private equity groups. The potential deal values the snacks maker between ₹5,000 crore and ₹5,500 crore. This development highlights the intense competition for established snack brands in India, even as companies face challenges with rising marketing costs and sector competition.
Advent International is moving forward with the sale of its 96.63% stake in DFM Foods, the company behind the popular Crax snack brand. The private equity firm is seeking a valuation between ₹5,000 crore and ₹5,500 crore for this divestment. This sale process has attracted a diverse group of bidders, ranging from major fast-moving consumer goods (FMCG) companies to large financial investors, as the industry looks to consolidate its position in the competitive packaged snacks segment.
The list of potential buyers reflects different strategic interests. On one side, large FMCG players like ITC and Emami are evaluating the asset to strengthen their snacks portfolio and improve their reach in regional markets. Balaji Wafers, a strong regional player, has also entered the race, which suggests that established snack companies are looking for inorganic growth to compete effectively against national and international brands. On the other side, financial investors including EQT Partners, TPG, and ChrysCapital are participating, highlighting the continued appetite for assets that offer scale in the Indian consumer space.
Financial Performance and Market Context
DFM Foods, which was delisted after being taken private by Advent International in 2023, has shown growth in its recent financial performance. The company reported net sales of ₹916 crore for the 2025-26 period, showing an improvement from the ₹705.8 crore recorded in the previous year. While this growth indicates that the brand maintains strong consumer demand, the potential new owner will need to navigate the specific pressures of this sector. The packaged snacks market in India is highly fragmented, and companies often face significant margin pressure due to high advertising spending and competitive pricing strategies required to keep products on store shelves.
Risks and Sector Challenges
For investors observing this space, the primary challenge remains the cost of scaling a snack business. Success in this category often requires consistent investment in brand building and distribution. Historically, companies in this sector have seen their profit margins squeezed when raw material costs rise or when they have to spend heavily on marketing to defend their market share against rivals. While the revenue growth at DFM Foods is notable, any potential acquirer will have to manage these operational costs carefully to ensure the investment remains profitable in the long run.
Next Steps in the Sale Process
The bidding process is currently in the initial stages. Interested parties are expected to submit their non-binding bids by the end of October 2026. Advent International aims to complete the transaction by the end of December 2026. The final valuation and the identity of the successful bidder will be the next key updates for the industry to watch, as this deal will likely influence how other mid-sized food companies are valued and acquired in the coming months.