MO Alts buys minority stake in Bengaluru-based Lal Sweets for Rs 330 Cr

MO Alternate Investment Advisors Private Limited, along with its co-investors, has invested Rs 330 crore and acquired a minority stake in Bengaluru-based Lal Sweets, a packaged sweets company.

Established in 2010, Lal Sweets is a ready-to-eat sweets company that offers a variety of products, including iconic Indian sweets like Mysore pak, Dharwad peda, kaju katli, and besan laddu, along with bakery items and savory snacks. It uses Modified Atmosphere Packaging (MAP) technology to extend the shelf life of its products.

It offers products through 4,000+ modern trade outlets, over 7,000 general trade outlets, quick commerce platforms, ecommerce sites, and its own website. Additionally, the company operates a travel-focused retail business with over 40 outlets at various airports. All products are manufactured in-house across three dedicated facilities.

“India’s packaged sweets space is witnessing a rapid double-digit growth, driven by increased focus on convenience and hygiene, uptick in gifting use-cases, shift from unbranded to branded plays, and pull of quality products at attractive pricing," Vijay Dhanuka, Managing Director and Head of Consumer Sector at MO Alts, commented.

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"Despite the presence of several large incumbents in this space, Prateek has demonstrated stellar product innovation and execution to capture positions in the Company’s core products across modern trade and quick-commerce channels," he added.

Lal Sweets was advised by Veda Corporate Advisors on the transaction.

“Our focus on providing authentic and consistent taste to consumers delivered with highest quality of ingredients and packaging has helped us establish Lal Sweets as a household brand name. We look forward to partnering with MO Alts’ team to help us further build the organisation, the brand and future growth strategies,” Prateek Athwani, promoter of Lal Sweets, said.

MO Alts, a subsidiary of Motilal Oswal Financial Services Limited, manages private equity and real estate funds, managing an AUM of approximately $2.0 billion. The private equity vertical provides growth capital to mid-market companies in consumer, financial services, life sciences, and niche manufacturing sectors, typically in the range of Rs 200– 500 crore.

Over the past 18 years, the private equity vertical in India has made over 44 investments, exited 17 of them, and partially exited two, achieving a gross MOIC of 5.0x and gross IRR of 26.3%, making it one of the top performing platforms in the country. Many portfolio companies have grown from less than $100 million at the time of investment.