Consumer deal activity almost halves during January-June period

economictimes.indiatimes.com:

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.