India’s private equity landscape sees growing activity in the traditional sweets industry as A91 Partners prepares to invest INR 175 crore (approximately $20 million) in Shree Anandhaas, a Coimbatore-based family-run fresh sweets brand. The funding marks Shree Anandhaas’ first institutional raise and signals rising investor interest in formalising unorganised food businesses with scalable regional appeal.
In a significant private equity move in India’s food and beverage sector, A91 Partners is in advanced stages to invest INR 175 crore (approximately $20 million) in Shree Anandhaas, a Coimbatore-based family-owned sweets and snacks brand with ambitious expansion plans across South India.
The upcoming investment represents the first institutional funding for the 27-year-old firm and reflects growing investor confidence in India’s vast yet largely unorganised traditional sweets sector. With this funding, Shree Anandhaas plans to grow beyond its 19 outlets in Tamil Nadu by entering major cities like Chennai, Kochi, Thrissur, Tirupati, and Vellore, as well as venturing into Kerala and Andhra Pradesh.
Founded in 1998 as a restaurant, Shree Anandhaas pivoted to the fresh sweets business in 2017. Known for its ghee, milk-based and kaju sweets, the brand competes with established players in the region, offering a differentiated focus on freshly made confections. Its product strategy contrasts with packaged sweets brands and aligns with the growing consumer preference for premium, fresh food offerings.
According to sources, Shree Anandhaas generated revenues of INR 290 crore in FY25 with a 10% EBITDA margin. Although the company’s valuation has not been formally disclosed, industry metrics suggest a 4X revenue multiple could place it in the INR 1,000–1,200 crore range.
This investment by A91 Partners is part of a broader trend of private equity targeting high-growth consumer categories in India, particularly in regional and legacy food brands. Analysts note that institutional capital is increasingly flowing into businesses with deep cultural roots and scalable formats, backed by evolving consumer demand and formalisation of legacy sectors.
The southern Indian sweets segment, long dominated by unorganised and family-run enterprises, is now undergoing structural transformation. Private equity interest in such businesses reflects a calculated bet on their ability to transition into well-structured, modern retail models with strong margins and local brand equity.
For A91 Partners, this move builds on its strategy of investing in high-potential Indian consumer brands, following previous commitments in coffee, dairy, and health food categories. The firm’s investment in Shree Anandhaas adds fresh momentum to this portfolio and underscores growing confidence in regional players with scalable models and loyal consumer bases.
As Shree Anandhaas prepares to scale operations, industry watchers anticipate a wave of similar transactions that bridge the gap between tradition and transformation in India’s consumer landscape.
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