EQT and ITC bid for DFM Foods in Advent International sale
Advent International has launched the sale of its 96.63% stake in snack maker DFM Foods, drawing bids from EQT Partners and ITC.
Advent International has mandated advisors to sell its majority stake in DFM Foods, which it acquired in 2017 and delisted in 2023. The private equity firm seeks to sell its 96.63% stake in the Noida-based snack maker. Avendus Capital and EY are managing the sale process.
EQT and ITC enter race for DFM Foods
EQT Partners and ITC have joined the bidding process for DFM Foods. Non-binding offers are expected by the end of October. Talks for the sale are in early stages.
DFM Foods financials and market position
DFM Foods was established in 1984. It reported net sales of ₹916 crore for the 2025-26 financial year. The company manufactures potato chips, namkeens, and millet snacks under several well-known brands.
Net sales in the previous year, 2024-25, were ₹705.8 crore.
Valuation and market context
The potential deal is likely at a valuation of ₹5,000-5,500 crore. This comes against a backdrop of declining consumer sector deal volume in India. Grant Thornton Bharat's latest Consumer Dealtracker, released in July, shows a sharp fall. Deal volume declined 34% quarter-on-quarter in the April-June period. Deal value fell 33% over the same period.
Despite the drop, total deal value remained resilient at $981 million. The sector saw 97 deals in the June quarter. Investors remained selective, focusing on wellness, personal care, food processing, and digital-first consumer brands.
Broader snack sector trends
The race for DFM Foods highlights continued interest in India's packaged snack market. Emami expanded into this sector for the first time in August. Its group entity, Emami Agrotech Ltd, launched the WeMe snacking brand. ITC, already a major player, operates multiple snack brands including Yoga Bar protein bars, Bingo chips, Right Shift multigrain snacks, and breakfast mixes.
Market dynamics are shifting. Hyper-local and online-only rivals are chipping away at the market share of large snack makers such as PepsiCo, Parle, and ITC Foods. Advent International originally acquired its majority stake in DFM Foods from WestBridge Capital in 2019 for $118.8 million. Balaji Wafers founder Chandu Virani has expressed interest. He said, "We are exploring the possibility of buying into DFM Foods."
Non-binding bids for the DFM Foods deal are expected by the end of October.
