Lighthouse Funds Injects ₹700 Crore into Contract FMCG Manufacturer Parsons Nutritionals

Lighthouse Funds, a renowned private equity entity with a focus on the Indian consumer sector, has injected ₹700 crore into Parsons Nutritionals, a prominent contract manufacturer of FMCG products.

This substantial investment marks Lighthouse's third deployment from its latest private equity fund, Lighthouse India Fund IV. The funding round witnessed active participation from Lighthouse's co-investors, including the International Finance Corporation (IFC), an esteemed member of the World Bank Group, Evolvence India, HDFC AMC's Fund of Funds, and several leading family offices.

Established in 2002 by S.S. Mann, Parsons Nutritionals has emerged as a trusted manufacturing partner for numerous leading Indian and global FMCG enterprises operating in India. The company specializes in producing a diverse range of packaged food and beverages, encompassing items such as cookies, biscuits, chocolates & confectionery, malted beverages, and ready-to-drink mixes. Recently, Parsons has expanded its portfolio to include personal care categories such as shampoos and soaps. Operating across multiple states, the company boasts several state-of-the-art manufacturing facilities.

This marks Parsons Nutritionals' inaugural external funding round from a private equity investor. The infusion of capital from Lighthouse Funds and its co-investors is poised to facilitate the expansion of the company's manufacturing capacities across existing and new product categories, catering to both its current clientele and potential new partners.

Expressing his views on the partnership, S.S. Mann, Promoter and Chairman of Parsons Nutritionals, emphasized the alignment of values between Parsons and Lighthouse, highlighting the shared commitment to quality and operational excellence. He noted that Lighthouse's long-term vision and familial ethos resonate deeply with the core principles of Parsons, setting the stage for the next phase of growth.

Sachin Bhartiya, Co-Founder and Partner at Lighthouse Funds, underscored Parsons Nutritionals' position as a preferred manufacturing partner for numerous consumer giants. He highlighted the company's remarkable growth trajectory and its potential to capitalize on the macroeconomic trends favoring increased consumption and outsourcing. Bhartiya reiterated Lighthouse's commitment to supporting the evolution of consumer products towards greater organization, branding, and premiumization.

Lighthouse Funds specializes in mid-market private equity investments, particularly in the consumer and healthcare sectors. With a track record spanning over a decade, the firm has backed over thirty companies across various domains, including consumer brands, healthcare, and specialty manufacturing. Notable investments include Unibic, Bikaji, Wow! Momo, Kama Ayurveda, and Nykaa, among others.

In addition to the investment in Parsons Nutritionals, Lighthouse recently concluded new investments in Kushal's Retail, a fashion jewelry retailer, and Safari, India's fastest-growing luggage and travel accessories company.

The Rainmaker Group served as the exclusive financial advisor for this transformative transaction, further underscoring the strategic significance of the partnership between Lighthouse Funds and Parsons Nutritionals in shaping the Indian FMCG landscape.

HBL