India’s retail and FMCG sector saw strong momentum this week, led by a surge in deal-making. Grant Thornton Bharat reported that Q1 2025 recorded the highest deal volume in three years, reflecting revived investor confidence. In a key development, ITC Limited acquired organic packaged foods brand 24 Mantra Organic for ₹472.5 crore, strengthening its position in the health-focused FMCG space.
Trade tensions between the US and China have opened fresh opportunities for India. Experts suggest the country must use the temporary tariff pause to boost exports and reinforce its role in global supply chains. At the same time, agrifoodtech startups attracted $2.5 billion in 2024, a threefold jump from 2023, with quick commerce platforms like Zepto leading the charge.
The pharma sector is at a crossroads as branded generics face price wars and regulatory pressures. Companies are now being pushed to build stronger consumer brands beyond prescriptions. On the macro front, a forecast of a good monsoon and retail inflation dropping to a 5-year low at 3.34% has lifted market sentiment.
In beauty retail, D2C brand Pilgrim has entered the B2B space, planning to roll out a salon professional product line in May, targeting 80,000 salons and further diversifying its business model.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. India’s consumer, retail deal volumes surge to 3-yr high: Grant Thornton
India’s consumer and retail sector in the first quarter of 2025 recorded its highest deal volume in three years amid a broader rebound in private equity and M&A (mergers and acquisitions) activity, according to a Grant Thornton Bharat report.
2. ITC to acquire organic FMCG staples brand 24 Mantra Organic for ₹472.5 crore
Diversified group ITC Limited on Thursday (April 17) said it has signed a definitive agreement to acquire 100% of the share capital of Sresta Natural Bioproducts Private Limited (SNBPL), the company behind the ‘24 Mantra Organic’ brand, for a consideration of up to ₹472.5 crore. The acquisition marks a significant move by ITC to expand its footprint in the fast-growing organic packaged foods segment.
3. India’s retail industry may gain as Trump’s tariffs singe Chinese exports
India must swiftly leverage the 90-day tariff pause by boosting its exports, securing favourable trade terms, and solidifying its position as a reliable alternative to China in global supply chains, according to experts and industry stakeholders.
4. India's agrifoodtech startups raised $2.5 bn in 2024, 3X rise from 2023
Investments in India's agrifoodtech startups jumped over 3-fold to $2.5 billion last year, driven by funds raised by quick commerce company Zepto, according to a report. Omnivore, in collaboration with AgFunder, a global investment platform, on Wednesday released a report titled 'Developing Markets AgriFoodTech Investment Report 2025'.
5. Indian pharma can’t survive on prescriptions alone. It must now build brands
India’s pharmaceutical market is undergoing a tectonic shift. Branded generics account for nearly 87% of the Indian Pharmaceutical Market (IPM) by value, but the foundations of this long-standing model are beginning to show cracks. Fierce price competition, increased substitution by trade generics, and regulatory tightening have made growth through prescriptions alone a dangerously narrow path.
6. Good Monsoon Brings Hope, Market & Economy May Grow
The market has got two good news updates. First, there was some relief from global issues. Second, the IMD (India Meteorological Department) said that the monsoon this year will be better than normal. This is a big reason for the market to feel positive. A good monsoon can help the Indian economy grow faster.
7. Instant View: India's retail inflation slows to over 5-year low in March
India's retail inflation eased to 3.34% in March, the slowest pace in over five years, as food prices continued to soften, government data released on Tuesday showed. March retail inflation was below economists' estimate of 3.60%. Inflation for February was 3.61%. The March inflation was the lowest since August 2019, the government said in a statement.
8. Pilgrim forays into B2B, aims to tap into 80,000 salons
Direct-to-consumer skincare and beauty brand Pilgrim has started a B2B vertical under its salon professional division and will launch the first line of products in May, co-founder Anurag Kedia told FE.
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