Lighthouse invests ₹700 cr in FMCG operator Parsons
Private equity fund Lighthouse Funds has backed Parsons Nutritionals Pvt. Ltd—a contract manufacturer for packaged foods, beverages, and personal care products— with ₹700 crore. The round saw participation from co-investors, including the International Finance Corp., a member of the World Bank Group, Evolvence India, HDFC AMC's Fund of Funds, and family offices, the company said. Parsons marks the third investment from the PE firm’s $425-million Lighthouse India
Fund IV. Established by S.S. Mann in 2002, Parsons operates as contract manufacturer for fastmoving consumer goods companies, including Mondelez, Hindustan Unilever, Britannia Industries, and General Mills.
Its production lines extend to cookies, biscuits, chocolates, confectionery, malted beverages and ready-drink mixes, as well as personal care products such as shampoos and soaps.
The firm operates manufacturing units across five states. This is Parsons' maiden round of external funding from a private equity firm. According to
Lighthouse, the capital will be used to expand manufacturing capacities for existing and new product categories to cater to the growing needs of current as well as future clients.
"As we continue to evolve as an institution, it was the right time to have a partner in Lighthouse for our next journey of growth. Its long-term vision and familial values perfectly match the DNA we have at Parsons,” Mann, promoter and chairman, Parsons, said.
Many large consumer goods firms are increasingly outsourcing manufacturing to thirdparty manufacturers, in addition to running their own production units. This trend is growing as both Indian and global FMCG firms step up investments in India to meet rising demand for packaged goods. Parsons is well-placed to benefit from the consumption and outsourcing trends, said Lighthouse Funds co-founder and partner Sachin Bhartiya. “This investment fits well into our long-term thesis of consumer products getting more organized, branded, and more premium,” he added.
Lighthouse, a mid-market PE firm, focuses on consumer and healthcare sectors. Since 2007, it has invested in over 30 Indian companies.
Parsons marks the third investment from the PE firm’s $425-million Lighthouse India Fund IV