Advent International Initiates DFM Foods Sale Process
Global private equity firm Advent International has formally launched the sale process for its portfolio company, DFM Foods, the manufacturer behind the popular Crax snack brand. According to people familiar with the matter, the process has hit the market, and multiple suitors, including private equity funds and strategic players, are currently evaluating the opportunity and signing non-disclosure agreements.
The exit follows nearly seven years of investment by the Shweta Jalan-led firm. While the exact timeline for closing the deal remains fluid, initial bids from interested parties are expected later in October. Advent International and DFM Foods did not respond to email queries seeking comment on the transaction at the time of publication.
Valuation Expectations and Advisor Roles
Sources indicate that Advent International is expecting a valuation in excess of $400 million for DFM Foods. However, it is important to note that this proposed valuation has not been finalised and may vary depending on market conditions and ongoing deal discussions. The current phase of the process is described as "valuation discovery."
Moneycontrol first reported on Advent International’s exit plans in April 2026. Subsequently, in June 2026, it was revealed that Avendus Capital and EY had been selected as sell-side advisors for the transaction. The sale is expected to attract interest from both financial buyers and strategic acquirers, particularly those eyeing the northern Indian market where DFM Foods has strong visibility. A merger with a suitable candidate is also considered a possibility.
Financial Performance and Growth Drivers
DFM Foods, established in 1984, has demonstrated robust financial growth recently. According to the company’s 2025 annual report, total sales increased by 27.5% to Rs 705.8 Crores, up from Rs 553.5 Crores in the previous period. This growth was primarily driven by the introduction of new products in the pellet category, improved market penetration, and expansion in the quick commerce channel.
New product launches contributing to this growth include Choco Rings, Fritts Peri Peri, Biryani, Korean Noodles, Crax Peri Peri Ragi Chips, and Crax Zero. Hemant Madhusudan Nerurkar, Chairman of DFM Foods, stated that the company delivered a "standout performance, significantly outpacing peers in India’s competitive snacking landscape."
However, the company also faced margin pressure. Nerurkar noted that elevated input costs, including sharp increases in raw materials, packaging, and customs duty on palm oil, compressed margins despite the strong top-line momentum.
Market Context and Company Profile
DFM Foods operates manufacturing plants in Ghaziabad, Greater Noida, Kashipur, Howrah, Hyderabad, Telangana, and Varanasi. The company’s total manufacturing capacity stands at 48,400 tonnes per annum. Its product portfolio includes 18 distinct variants sold under the brands ‘Crax’, ‘Curls’, and ‘Natkhat’.
The business remains regionally concentrated, with approximately 80% of revenues derived from northern India. DFM Foods has a distribution network of over 1,700 distributors across India and is actively strengthening its presence in eastern markets as part of its geographic diversification strategy.
This sale occurs against a backdrop of active M&A activity in India’s food sector. Recent transactions include investments by Temasek, IHC, and Alpha Wave Global in Haldiram’s, and Tata Consumer Products increasing its stake in Capital Foods Private Limited to 80%. Additionally, Advent International recently announced a $150 million investment for a minority stake in Iscon Balaji Foods Private Limited (IBF).