Consumer, F&B
Veda advises Lal Sweets, pioneer of packaged ethnic desserts, on its sale of minority stake to Motilal Oswal Alternates
About
Lal Sweets
Incorporated in 2010, Lal Sweets Private Limited is one of the largest packaged traditional sweet brands in India offering Indian sweets, bakery items (cookies, cake toast, baklava), and select savoury snacks, etc. It is a go-to brand for Mysore Pak and Besan Laddoo. It uses MAP technology to retain freshness and prolong shelf life, making it possible to follow FMCG model for sweets. It also operates 40 airport stores across 10+ cities, few under the brand name ‘Mithai Box’. The Company manufactures all of its products in-house across 3 dedicated facilities and has a capital efficient model having been bootstrapped with strong profitable growth since inception.
MO Alts
MO Alternate Investment Advisors Private Limited (“MO Alts”) is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL. MO Alts is managing both private equity and real estate funds and cumulatively manages an AUM of ~USD 2.0 bn between the two asset classes.
Background
We are pleased to announce that our client Lal Sweets Private Limited (“Lal Sweets”) has sold significant minority stake for INR 330 Cr to Motilal Oswal Alternate Investments (“MO Alts”).
Lal Sweets is a Bengaluru-based packaged traditional sweets company specialising in a wide variety of Indian sweets such as ‘Mysore Pak’, ‘Dharwad Peda’, ‘Kaju Katli’, ‘Besan Laddu’, etc. Lal sweets operates follows FMCG-like model for distribution through 4000+ modern trade stores, 7000+ general trade stores, quick and e-commerce platforms and strategically located 40+ airport stores. It uses modified atmosphere technology (MAP) to prolong shelf life and retain freshness of the packaged sweets without addition of any preservatives.
Veda Corporate Advisors (“Veda”) was the exclusive financial advisor to the Company and its promoters. Veda provided comprehensive transaction advisory services covering identification of prospective investors, strategic positioning including deal structuring, negotiation of key commercial terms, leading to the successful closure of the transaction.
“Working with Veda throughout the entire process was truly a wonderful experience. I extend my sincere thanks to Atul and the entire Veda team for their exceptional dedication and effort in making this happen.”
Mr. Prateek Athwani
Managing Director and CEO, Lal Sweets
“Prateek’s passion & zeal has driven Lal Sweets to be able to completely turn the traditional Indian Mithai into FMCG by carefully managing freshness, taste, consumer preferences, convenience & long shelf life using the levers of technology and packaging. We are very confident that the partnership with Motilal Oswal will further accelerate the growth and expansion across both domestic and export markets.”
Atul Saraogi & Sivaraj Sekhar
MDs, Veda Corporate Advisors