New Delhi, June 8 -- Homegrown private equity firms Samara Capital and Convergent Finance have increased their stakes in a fast-moving consumer goods (FMCG) and edible oils company for the second time since first investing in the business in 2024.

The two firms, which are among India's prominent homegrown PE investors, first acquired a majority stake in Sundrop Brands Ltd (formerly Agro Tech Foods Ltd) from US-based Conagra Brands Inc in a deal announced in March 2024 and completed in August that year.

Subsequently, Sundrop Brands acquired Del Monte Foods Pvt Ltd (DMFPL), a Bharti Enterprises-Del Monte joint venture in India, through an all-stock transaction in November 2024. The share-swap deal diluted Samara and Convergent's holding to below 50%.

In December 2025, the investors purchased an additional 4.99% stake in the firm from DMFPL.

They have now acquired another 4.99% stake from the US food company.

In December 2025, the PE firms had cited Sundrop's strong brand equity, robust pan-India distribution network, and disciplined focus on quality, innovation, and consumer trust as key factors positioning the company to benefit from the consumer shift to branded and packaged food products.

"With a clear roadmap for operational excellence and category expansion, the company is, in our view, well set up for sustained success and value creation," they had said in a joint statement at the time.

The latest share purchase, which aligns with an earlier agreement between the parties, is valued at around Rs 121.6 crore ($12.8 million), according to VCCircle's estimates.

The November 2024 acquisition of DMFPL valued the maker of Del Monte-branded products at around Rs 1,300 crore ($154 million then). The transaction brought Bharti Enterprises and Del Monte in as shareholders of Sundrop Brands. DMFPL's portfolio includes pastas, cooking oils, sauces, dips, spreads, beverages and packaged fruits and vegetables.

Following the latest transaction, Del Monte's stake is expected to decline to around 2.96% from 7.95% as of March 2026. Bharti Enterprises continues to hold more than 20% in Sundrop Brands, while investor Rekha Jhunjhunwala owns a 4.94% stake.

The company reported consolidated revenue of Rs 1,549.4 crore in FY26, up 72% year on year. It posted a net profit of Rs 201.3 crore during the period, compared with a net loss of Rs 109 crore a year ago.

Published by HT Digital Content Services with permission from VC Circle.