L Catterton bets on India's healthy snacking push

L Catterton, the consumer-focused private equity firm backed by LVMH, has placed three bets from its first India-dedicated fund. The targets: healthy snacking and branded foods.

Executive Chairman Sanjiv Mehta said India is at the cusp of a “snacking renaissance.” Higher incomes and a move away from loose, unbranded goods are driving the shift, he said. The transition from unbranded to branded products represents the biggest opportunity, Mehta added, calling for more investment in food innovation to build globally recognized Indian brands.

Mehta is a former Unilever executive who led the company’s India operations. His view carries weight in the consumer goods world. The packaged food market in India is still dominated by local and unorganized players. Branded penetration in categories like healthy snacking is low compared with markets such as the U.S. or China, Mehta noted.

L Catterton’s approach typically involves taking majority stakes and working with management to expand distribution and product lines. The firm has a track record in global consumer brands, including Birkenstock and Peet’s Coffee. The India fund launched earlier this year. L Catterton has not disclosed deal sizes or the names of the three portfolio companies.

The broader thesis hinges on formalization. India’s packaged food market is projected to grow at double-digit rates over the next decade, driven by urbanization and a young population. The pandemic accelerated interest in healthier options, with consumers reading ingredient labels and favoring packaged goods over loose commodities. L Catterton wants to capture that shift before larger global players crowd the segment.

Mehta did not provide a timeline for additional deals. He said the firm is actively screening opportunities across snacking, dairy, and ready-to-eat categories where branded share is thin. The fund’s strategy is to back companies that can scale distribution across a fragmented retail landscape.

For a firm that has built some of the world’s best-known consumer brands, the India bet is a test of whether the pace of formalization can meet return expectations. Mehta’s own history suggests he knows the terrain. The next few quarters will show whether L Catterton’s first India fund can turn a fragmented market into portfolio growth.