MO Alts Invests INR 330 Cr for Minority Stake in Lal Sweets Established in 2010, Lal Sweets has built a reputation for delivering Indian sweets like Mysore Pak, Dharwad Peda, Kaju Katli, and Besan Laddu. It uses Modified Atmosphere Packaging (MAP) technology to extend the shelf life of its products.
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MO Alternate Investment Advisors Private Limited ("MO Alts"), a subsidiary of Motilal Oswal Financial Services Limited (MOFSL), along with co-investors, has made an investment of INR 330 crore for a minority stake in Lal Sweets Private Limited ("Lal"), a Bengaluru-based company renowned for its extensive range of Indian sweets.
Established in 2010, Lal Sweets has built a reputation for delivering Indian sweets like Mysore Pak, Dharwad Peda, Kaju Katli, and Besan Laddu. It uses Modified Atmosphere Packaging (MAP) technology to extend the shelf life of its products.
Prateek Athwani, Promoter of Lal Sweets, said, "Our focus on providing authentic and consistent taste to consumers delivered with the highest quality of ingredients and packaging has helped us establish Lal Sweets as a household brand name. Our product innovation mindset has allowed us to gain a leading position in products such as 'Mysore pak', 'dharwad peda', etc. across channels."
"We look forward to partnering with MO Alts' team to help us further build the organisation, the brand, and future growth strategies. Their practical approach along with a high focus on governance will help build Lal Sweets into a very long-lasting institution, as demonstrated by them in several growth stage franchises," Athwani added.
The company operates as a full-fledged FMCG entity, employing an omni-channel strategy that spans over 4,000 modern trade outlets, 7,000 general trade outlets, quick-commerce platforms, e-commerce channels, and its own website.
Additionally, Lal Sweets claims to have a robust travel-focused retail business with a presence in over 40 airport outlets across the country. All products are manufactured in-house across three dedicated facilities.
Vijay Dhanuka, Managing Director and Head of Consumer Sector at MO Alts, said, "India's packaged sweets space is witnessing rapid double-digit growth, driven by increased focus on convenience and hygiene, uptick in gifting use-cases, shift from unbranded to branded plays, and pull of quality products at attractive pricing.
"Despite the presence of several large incumbents in this space, Prateek has demonstrated stellar product innovation and execution to capture leading positions in the company's core products across modern trade and quick-commerce channels," Dhanuka added.
Lal Sweets was advised by Veda Corporate Advisors on the transaction.
MO Alternate Investment Advisors Private Limited (MO Alts) manages private equity and real estate funds with a cumulative AUM of around USD 2.0 billion.
The private equity vertical provides growth capital to mid-market companies in consumer, financial services, life sciences, and niche manufacturing sectors, typically in the range of INR 200–500 crore.
Over the past 18 years, the private equity vertical in India has made over 44 investments, exited 17 of them, and partially exited two, achieving a gross MOIC of 5.0x and gross IRR of 26.3%.
