India’s food sector sizzles with record deals this year

India’s food sector is witnessing a wave of dealmaking as investors—both domestic and global—pour capital into promising consumer brands, reported The Economic Times. Promoters and early investors are cashing out with substantial returns amid a flurry of transactions that signal a growing appetite for India’s consumption story.

The latest in the series of high-profile deals is the investment in homegrown dessert and waffle chain The Belgian Waffle Co., where Vixar (formerly Arpwood Partners) has acquired a significant minority stake for about ₹770 crore, valuing the company at around ₹1,700 crore, ET reported, citing people familiar with the matter. The recent transaction sees Vixar picking up about a 45% stake, alongside veteran investor Vallabh Bhansali and HDFC Asset Management Co., making the consortium the controlling shareholder. Existing investor Marathon Edge, along with MD and CEO Ankit Patel and cofounders Shrey Aggarwal and Alisha Shirodkar, have partially exited.

String of food deals

This deal adds to a string of recent acquisitions in India’s food and beverage space. Reliance Consumer Products Ltd. (RCPL), the FMCG arm of Reliance Industries, also acquired a majority stake in Chennai-based Udhaiyams Agro Foods, makers of staples, snacks, and breakfast mixes, for an undisclosed amount. As per ET, the joint venture allows Udhaiyams’ founders S. Sudhakar and S. Dinakar to retain a minority stake.

In another sign of growing momentum, ET quoted a Reuters report earlier this month that said Orkla India, part of Norwegian consumer goods group Orkla (owner of MTR and Eastern spices), is actively scouting acquisitions in India to expand its portfolio. Orkla’s CEO told Reuters the company aims to leverage India’s quick-commerce platforms and demand for ready-to-eat meals to sustain double-digit growth—a reflection of how global players view India as a high-potential consumption market.

According to investment bank Equirus Capital, India’s consumer sector recorded 115 M&A deals between January and September 2025, marking a four-year high, with the food and beverages segment leading the surge. By value, consumer-sector transactions exceeded ₹21,200 crore during the period, with nearly three-fourths concentrated in food and beverages.

Large-ticket transactions underscore the scale of investor confidence. Recent deals include Tilaknagar Industries’ $486 million purchase of the Imperial Blue whisky brand from France’s Pernod Ricard, and Singapore’s Wilmar International acquiring an $832 million stake in AWL Agri Business. Meanwhile, private equity funds such as Apax Partners, Kedaara Capital and Verlinvest are in advanced talks with iD Fresh Food, while Temasek, IHC and Alpha Wave Global took minority stakes in Haldiram Snacks Food, valuing it at $10 billion, ET noted.

According to Rajiv Batra of ChrysCapital, “India’s food space is a large industry with an attractive growth profile based on the shift from unorganised to organised. With an increase in disposable income and convenience-led multiple food options via food aggregators, Indians are eating out and ordering food more than before.”

Echoing this sentiment, Arjun Anand, managing director and Head of Asia at Verlinvest, told TOI that “for global investors looking to invest in India, consumer and healthcare must be on the shopping list… the next couple of years should augur well for consumption given the tax breaks and factors such as the reduction in import duty for edible oil.”

Analysts attribute the surge to strong structural tailwinds. As per Imarc Group, India’s packaged food market is projected to grow from $121.3 billion in 2024 to $224.8 billion by 2033, expanding at a 6.5% CAGR. Rising urbanisation, convenience-driven lifestyles, and online food delivery growth are key catalysts.

The combination of accelerating demand, investor confidence, and expanding organised players underscores why India’s food and beverage sector has emerged as the focal point of dealmaking. Strategic buyers see opportunities to scale up and defend market share, while financial investors are eager to tap into long-term consumption growth.

As The Economic Times report, the intensity of M&A activity suggests India’s food space will remain one of the most hotly contested sectors for investors—both local and global—in the years ahead.