Pet food business bodes well for India's Nestle and Godrej Consumer, says Ambit
** Nestle India's NEST.NS and Godrej Consumer Products' GOCP.NS urban-centric distribution to come in handy for pet care business, analysts at Ambit Capital say
** Indian pet care market and pet food market is nascent at around 65 bln rupees ($774 mln), says Ambit
** Adds, pet food market clocked 20% compound avg growth rate over 2018-2023, which is higher than FMCG categories across health and personal care, and food and beverages segment
** Expect pet food market to be a concentrated industry with top 4-5 players garnering 70-80% market share; Nestle or GOCP to achieve 10%-15% market share over next decade
** GOCP had said earlier this month it will invest 5 bln rupees over 5 years for pet care biz, while Nestle had acquired Purina Petcare in 2022
** NEST down ~6% so far this year, while GOCP up 30%
($1 = 83.9330 Indian rupees)
Reporting by Ashna Teresa Britto in Bengaluru
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