Parsons Nutritionals raises Rs 700 crore from PE firm Lighthouse Funds
This is the first time that Parsons has raised external funding from a private equity investor, and the current round of funding would help it expand its manufacturing capacities in existing and newer product categories for its existing and new clients.
Parsons Nutritionals, a contract manufacturer in the FMCG space, has raised Rs 700 crore from private equity fund Lighthouse Funds, the company said in a statement today, April 15.
This is the third investment from the newly raised fourth private equity fund, Lighthouse India Fund IV, the company informed
In the fresh round, other investors like International Finance Corporation (IFC), a member of the World Bank Group, Evolvence India, HDFC AMC's Fund of Funds, and other leading family offices, also took part.
This is the first time that Parsons has raised external funding from a private equity investor. The company will use the funding to expand its manufacturing capacities in existing and newer product categories for its existing and new clients.
Parsons manufactures packaged food and beverages such as cookies, biscuits, chocolates and confectionery, malted beverages, and ready-drink mixes for many leading Indian and global FMCG companies operating in India. It has recently forayed into manufacturing personal care categories such as shampoos and soaps, the statement said.
The company operates multiple manufacturing facilities across five states.
"As we continue to evolve as an institution, it was the right time to have a partner in Lighthouse on our next journey of growth," Parsons Nutritionals promoter and chairman, SS Mann said.
On the company's investment, Lighthouse Funds co-founder and partner, Sachin Bhartiya said Parsons has been a preferred manufacturing partner for many large consumer companies and has grown over the years to command a dominant wallet share in the categories in which it operates.
"With years of manufacturing excellence underpinned by a strong focus on product quality, operational efficiency, and distributed manufacturing, Parsons is uniquely positioned to benefit from the macro tailwind of increased consumption and outsourcing trends. This investment fits well into our long-term thesis of consumer products getting more organised, more branded, and more premium," Bhartiya added.
The Rainmaker Group acted as the exclusive financial advisor on this deal.
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