FMCG major Nestleon Thursday said it will acquire the pet foods business of Purina Petcare India for Rs 123.5 crore, providing Nestle access to the fast-growing business in the country.

Both Nestle India and Purina Petcare India are subsidiaries of Swiss major Nestle S.A.

According to a regulatory filing, the board of Nestle India on Thursday “approved the acquisition of Pet Foods Business from Purina Petcare India through business transfer”with effect from October 1.Nestle S.A. owns 100 per cent of Purina Petcare India and 62.76 per cent of Nestle India.“The company and Nestle Group have agreed to a value of Rs 123.5 crore as the consideration for the purchase of PFB, which works out to around 3.4 times the turnover of Purina Petcare India for the financial year ended March 31, 2022,” Nestle India said.

In 2021-22, Purina Petcare’s turnover was Rs 36.08 crore.

Profit falls

FMCG major Nestle India Ltd on Thursday reported a 4.31 per cent fall in its net profit at Rs 515.34 crore for the second quarter ended June 30, amid inflationary pressures.The company, which follows the January-December financial year, had posted a net profit of Rs 538.58 crore in the corresponding period a year ago, Nestle India said in a regulatory filing. However, Nestle India’s net sales were up 15.72 per cent to Rs 4,006.86 crore against Rs 3,462.35 crore a year ago.