Consumer deal activity almost halves during January-June period

Deal activity in the retail and consumer sector has slumped in recent months as investors have turned cautious amid high inflation and other uncertainties in the market, a Grant Thornton Bharat report has said.

The number of deals through mergers and acquisitions and private equity funding in this sector almost halved to 150 during January-June from 297 a year earlier while the drop in value was even higher - 61% - at $2.8 billion against $7 billion in the absence of big-ticket investments, said the report shared exclusively with ET.

"It (deal activity) is hindered by overall decline, rising inflation, and supply-demand fluctuations," said Naveen Malpani, partner and national sector leader, consumer industry, at Grant Thornton Bharat. "Despite the potential of digital adoption and growing ecommerce, there has been a decline in both the number of deals and their values, driven by companies facing challenges in effectively leveraging digital opportunities and adapting their business models," he said.


Experts expect a recovery in the deal space in the second half of the year. They said companies are increasingly relying on M&A to diversify revenue sources beyond traditional trading, reflecting the evolving industry dynamics.

This strategic shift allows them to pursue significant deals, positioning themselves as leaders in local and global markets while capitalising on cost synergies.