Can the pet care business keep flourishing in India?

Pet parenting is an expensive ordeal. Though caring for one’s pets may seem easy, the proper raising of pets is never a low-budget thing. It may cost you a fortune depending on the size of your pets.

The estimate of expense involved in pet parenting has attracted many business entrepreneurs to come up with new business ideas in this area. It led to the birth of a new era in the pet care business in India.

An ET Play podcast by Kiran Somvanshi discusses the existing growth of this business in India while focussing on the challenges the pet care centres face today. Somvanshi is in conversation with Salil Murthy, Managing Director of Mars Petcare India, Rashi Narang, Founder of Heads Up For Tails, Manuranjith Ranganathan -MD, Sancho Animal Hospital & Director - Retail at CavinKare and Mihir Shah, Co-founder of Woof n Goof Pet Care Services.

What ushered the rise of pet care centres in India?

Since the COVID-19 pandemic, people have grown more fond of pets. During the lockdowns, people came to value the love and warmth of their pets even more. Remote workers are now finding more time for their pets in this post-pandemic phase. Thus, pet parenting remains on the rise. It has led to a flourishing business of pet care centres and pet specialty retail stores across the country. The pet care centres provide facilities like pet supplies, grooming and maintenance. 

How big is the pet care business in India?

India has become one of the fastest-growing pet care markets in the world. Hundreds of business owners have converted the love for pets into a living. India's pet economy has seen rampant growth in the last four years. The pet care industry in India is roughly between ₹7500 to ₹9000 crore presently. The area has become so lucrative and inspiring that big brands like Nestle India and Emami, have recently announced their acquisitions.

CK Ranganathan, the founder of FMCG company, CavinKare, started an animal hospital chain in 2018. The hospital has centres for grooming, spa services for pets and a pet supermarket. It is a state-of-the-art hospital that has niche laboratories. 

Mihir Shah, a pet-lover himself, founded the Woof n Goof pet care services. Another small business entrepreneur, Rashi Narang founded Heads Up For Tails which operates 60 pet specialty retail stores across India. A slew of start-ups has raised funding in the past two years of the pandemic. The market growth has been historically 15 to 18%. But the pandemic has significantly accelerated some of the recent trends.

Recent challenges of pet care companies in India:

The growth trend of the pet industry has caught the eyes of several FMCG companies. Last month, Emami acquired a strategic stake in a pet care start-up named Canis lupus. And Nestle India acquired the pet food business of another pet centre Purina. 

Moreover, the inflation in India's economy is presently a major cause of concern. Pet food comprises the dominant part of the pet care economy but with sky-high inflation, people are becoming less liberal about how much they spend on their pets. As a result, pet parents with higher disposable incomes can only afford to pamper their pets with the facilities of the upscale pet care centres.

For more interesting news updates and in-depth discussions on current affairs, log on to ET Play now and get listening!