MUMBAI: The promoters of Surprise Merchandise Group have engaged PwC as an adviser to promote a 30–35% stake within the contract manufacturing firm in what’s going to probably be its first spherical of exterior funding, two individuals accustomed to the matter stated.
“The valuation discovery remains to be underway, however the promoters are looking for about $250 million for the 30–35% stake,” one of many individuals stated, including that non-public fairness companies shall be tapped as a part of the method.
“These efforts are geared toward professionalizing the corporate forward of plans to finally record within the public markets,” the second individual stated on the situation of anonymity.
Surprise Merchandise’ promoters Rajat Kumar Bhalotia and Rajesh Kumar Bhalotia and PwC didn’t reply to Mint’s requests for touch upon the stake-sale plan.
Surprise Merchandise is a contract producer of private care, cosmetics and residential care merchandise that caters to greater than 1,000 world shoppers. Past key clients L’Oreal, Unilever and Hindustan Unilever, Surprise additionally providers Reliance Industries, Faces Canada, Nykaa, Reckitt, Marico, Cipla, Procter & Gamble, Colgate, Yardley and Dabur, amongst others, in accordance with its official web site.
The potential deal comes on the heels of heightened investor curiosity in contract manufacturing on the again of the rising market share of direct-to-consumer gamers and retailers, elevated outsourcing by FMCG gamers, and an export-driven play coupled with altering client demand patterns tilted in direction of premiumization.
Outstanding offers within the area embody Lighthouse Funds’ ₹700 crore funding in Parsons Nutritionals in April 2024, Kotak Alternate Asset Managers’ ₹1,050 crore funding in Tirupati Medicare (March 2025), Pontika Aerotech’s ₹70 crore increase from India SME Investments (October 2024) and Hindustan Meals’ ongoing inorganic development technique.
Darkish horse
India’s FMCG contract-manufacturing trade has emerged as a darkish horse up to now 24 months, partly pushed by a metamorphosis from a fragmented low-margin section into one with reasonable to large-scale operations, deep innovation capabilities, diversified product and buyer base and publicity to export markets resulting in development and profitability. This has led to vital worth creation within the public markets and laid the bottom for personal fairness play, KPMG stated in a report final 12 months.
Based in 1994 by the Bhalotia household, New Delhi-based Surprise Merchandise focuses on analysis and developmental formulation, logistics, and white-label options for industries reminiscent of private care, hair, physique and skincare, oral care, aerosol, soaps, detergents, derma cosmetics, and prescribed drugs. As per the KPMG report, the corporate reported income of ₹1,250 crore in FY25.
Surprise competes with Hindustan Meals Ltd, Oriclean, Clarion, Kapco, Shivani Enterprises, Pontika Aerotech, IPF-Vikram and the VVF Group.
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