Wonder Products Group explores 30-35% stake sale for about $250 million, engages PwC as advisor
MUMBAI: Founders of Wonder Products Group have appointed PwC as advisors to sell a 30-35% stake in the contract manufacturing company in what is likely to be its first round of external financing, two people familiar with the matter said.
“Valuation exploration is still ongoing, but promoters are looking for around $250 million for a 30-35% stake,” one of the sources said, adding that private equity firms would be tapped as part of the process.
“These efforts are aimed at professionalizing the company ahead of plans to eventually list it on public markets,” the second person said on condition of anonymity. he said.
Wonder Products promoters Rajat Kumar Bhalotia and Rajesh Kumar Bhalotia and PwC did not respond MintRequests for comment regarding ‘s share sale plan.
Wonder Products is a contract manufacturer of personal care, cosmetics and home care products serving more than 1,000 global customers. According to its official website, Wonder not only provides services to L’Oreal, Unilever and Hindustan Unilever, but also Reliance Industries, Faces Canada, Nykaa, Reckitt, Marico, Cipla, Procter & Gamble, Colgate, Yardley and Dabur, among others.
The potential deal comes in the wake of rising investor interest in contract manufacturing due to rising market share of direct-to-consumer players and retailers, increased outsourcing by FMCG players and an export-oriented play coupled with changing consumer demand patterns towards premiumisation.
It is stated that Lighthouse Funds is among the prominent agreements in this field. ₹700 crore investment in Parsons Nutritionals, Kotak Alternative Asset Managers in April 2024 ₹Pontika Aerotech’s 1,050 crore investment in Tirupati Medicare (March 2025) ₹70 crore raise from India SME Investments (October 2024) and Hindustan Foods’ ongoing inorganic growth strategy.
dark horse
India’s FMCG contract manufacturing sector has emerged as a dark horse in the past 24 months, driven by transformation from a partially fragmented low-margin segment to one with medium to large scale operations, deep innovation capabilities, diversified product and customer base, and access to export markets leading to growth and profitability. This has led to significant value creation in public markets and paved the way for the private equity play, KPMG said in a report published last year.
Founded in 1994 by the Bhalotia family, New Delhi-based Wonder Products specializes in research and development formulations, logistics and white label solutions for industries such as personal care, hair, body and skin care, oral care, aerosol, soaps, detergents, derma cosmetics and pharmaceuticals. According to the KPMG report, the company reported revenue of: ₹1,250 crore in FY25.
Wonder competes with Hindustan Foods Ltd, Oriclean, Clarion, Kapco, Shivani Enterprises, Pontika Aerotech, IPF-Vikram and VVF Group.
