Buyouts in family biz to rise in next 5-7 years

Opportunity arising from scale and talent, says ChrysCap's Rajiv Batra

- Sowmya Ramasubramanian & Rwit Ghosh

India's consumer industry is seeing more family-run businesses achieving scale, which is resulting in attractive buyout opportunities for private equity firms, a senior ChrysCapital executive told Mint.

Moreover, generational wealth and businesses are exchanging hands within family-run businesses, prompting many entrepreneurs to sell parts of their business and creating more instances for buyouts, said Rajiv Batra, director and consumer sector lead at ChrysCapital.

"We see the share of buyouts increasing in the next 5-7 years," he said.

He added that the availability of talent is on the rise.

ChrysCapital's thesis comes on the heels of its acquisition of desserts chain Theobroma for an 85% stake, marking its first buyout in the consumer sector, it said on Wednesday. It is also the firm's first transaction in the consumer foods space.