Consumer & Retail
India is the sixth-largest economy in the world. By 2030, domestic private consumption, which accounts for 60% of the country’s GDP, and is expected to develop into a $6 trillion growth opportunity which would make its consumer market the third largest in the world.
The Indian consumer market is drawing global attention not just because of its promise of sheer volumes but also because of the tectonic shift happening in the nature of demand. Increasing urbanisation, increasing incomes and rising aspiration for a better life, especially among the lower economic strata, are some of the factors reshaping the Indian consumer market. Staying a step ahead of trends in the consumer & retail industry requires deep knowledge, an effective network of key players and a focus on long-term relationships.
2021 is expected to witness healthy M&A activity in the consumer sector, with strong interest from global financial investors seeking higher exposure in high-growth sectors such as ethnic ready-to-eat snacks and foods [estimated to grow 34% vs 2015-20]1, DTC personal-care brands [estimated to grow US$100 billion by 2025]2 and home-improvement retail [expected to grow 13% during 2020-24]3
2019-20 Deal volume and Value
Consumer sector in India saw an increase in overall deal volume and value in 2020.
223 Deals (USD 16 Bn) in 2020 as against 217 deals (USD 7 Bn) in 2019
Our Focus Areas
- Food & Agribusiness
- Food Retail
- Food Service
- Apparel, gear and accessories
- Household goods and personal products
- Wholesale consumer goods
COVID-19 has elevated demand in the home-hygiene and personal care segment. Consumers taking a more proactive approach to nourishing body and mind may push companies to expand into premium-health focused products through M&A.
- Non-food retail
- Travel, Leisure and Restaurants
E-commerce experienced rapid growth as consumes were forced to stay at home due to lockdown. Grocery retail remains unaffected as consumers prioritized essentials; on the other hand, the non-food retail suffered on account of the extended lock-down restrictions. The travel, leisure and restaurants had to close at the beginning. Most restaurants very quickly managed to develop alternative business models and focused on pickup and delivery business, which secured us at least around portion of pre-COVID19 revenues.
How can 7i help?
Distinguished by deep industry sector expertise and global reach
Through the strong network of Clairfield International, our consumer sector team is able to tap into pathways of relationships among worldwide partners and senior advisors in order to analyze trends, understand key players, and advise our middle market clients on how best to proceed with strategic initiatives on both the buy and sell side.
Abhijeet A. Biswas, CFA