Monday, April 15, 2024

Lighthouse invests INR 700 crores in Parsons Nutritionals, India's premier contract manufacturer in the FMCG space

Mumbai, April 15, 2024: Lighthouse Funds, a private equity fund focused on the Indian consumer sector, has invested INR 700 crores in Parsons Nutritionals, India's leading contract manufacturer in the FMCG space. Parsons is Lighthouse's third investment from its newly raised fourth private equity fund, Lighthouse India Fund IV. The investment saw participation from co-investors of Lighthouse, including the International Finance Corporation (IFC), a member of the World Bank Group, Evolvence India, HDFC AMC's Fund of Funds, and other leading family offices.


Founded in 2002 by Mr. S.S. Mann, Parsons has been a manufacturing partner of choice for many leading Indian and global FMCG companies operating in India. The Company manufactures packaged food and beverages such as cookies, biscuits, chocolates & confectionery, malted beverages, and ready-drink mixes. It has recently forayed into manufacturing personal care categories such as shampoos and soaps. The Company operates multiple manufacturing facilities across five states, strategically located with pan-India coverage. This is the first time that the Company has raised external funding from a private equity investor, and the current round of funding shall enable the company to expand its manufacturing capacities in existing and newer product categories for its existing and new clients.

Commenting on the Lighthouse investment into the Company, Mr. S.S. Mann, Promoter and Chairman, Parsons Nutritionals, shared, "We built Parsons on the foundation of consistently delivering the core promise of quality and operational excellence to our clients, who have entrusted us with their brands over multiple decades. 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. Their long-term vision and familial values perfectly match the DNA we have at Parsons. We look forward to this association."

Mr. Swapandeep Mann, Promoter and CEO, Parsons Nutritionals, additionally shared, "We're pleased to partner with Lighthouse as we embark on the next phase of growth, aiming to enhance long-term value for all stakeholders. Leveraging their extensive network and experience in the consumer space, we envision significantly expanding our presence in India and across global markets. On the back of strong tailwinds in the Indian manufacturing sector, we're focused on doubling down on our capabilities and replicating the deep partnerships with many more premier brands."

Sachin Bhartiya, Co-Founder and Partner of Lighthouse Funds, 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 organized, more branded, and more premium."

Rochelle Dsouza, Managing Director of Lighthouse Funds, added, "The wealth of manufacturing experience that Mr. S.S. Mann and Mr. Swapandeep Mann bring is unparalleled. We are pleased to partner with the Mann family and are very excited about the Company's future."

Lighthouse is a leading mid-market private equity firm focused on growth investments in the consumer and healthcare space. The firm has been investing in India since 2007 and has invested in over thirty companies across consumer brands, healthcare, and speciality manufacturing. The F&B and BPC space has been a big focus of Lighthouse. It has invested in companies like Unibic, Bikaji and Wow! Momo in the F&B space, and Kama Ayurveda and Nykaa in the BPC space. Lighthouse's other notable investments include leading Indian brands like Duroflex Mattress, Fabindia, Ferns N Petals, Cera Sanitaryware, Dhanuka Agritech, Poly Medicure, Shaily Engineering, and Tynor Orthotics, among others. Lighthouse has also recently completed new investments into Kushal's Retail, a fashion jewellery retailer and Safari, India's fastest-growing luggage and travel accessories company.

The Rainmaker Group acted as the exclusive financial advisor on this transaction. The Rainmaker Group is the investment banking partner for India's private businesses as they traverse their fundraising journey - from mid-stage to pre-IPO. The firm has delivered growth equity and secondary transaction milestones for India's leading unicorns, soonicorns, and now-listed businesses.


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