The promoters of Wonder Products Group have engaged PwC as an adviser to sell a 30–35% stake in the contract manufacturing company in what will likely be its first round of external funding, two people familiar with the matter said.
“The valuation discovery is still underway, but the promoters are seeking about $250 million for the 30–35% stake,” one of the people said, adding that private equity firms will be tapped as part of the process.
“These efforts are aimed at professionalizing the company ahead of plans to eventually list in the public markets,” the second person said on the condition of anonymity.
Wonder Products’ promoters Rajat Kumar Bhalotia and Rajesh Kumar Bhalotia and PwC did not respond to Mint’s requests for comment on the stake-sale plan.
Wonder Products is a contract manufacturer of personal care, cosmetics and home care products that caters to more than 1,000 global clients. Beyond key customers L’Oreal, Unilever and Hindustan Unilever, Wonder also services Reliance Industries, Faces Canada, Nykaa, Reckitt, Marico, Cipla, Procter & Gamble, Colgate, Yardley and Dabur, among others, according to its official website.
The potential deal comes on the heels of heightened investor interest in contract manufacturing on the back of the growing market share of direct-to-consumer players and retailers, increased outsourcing by FMCG players, and an export-driven play coupled with changing consumer demand patterns tilted towards premiumization.
Prominent deals in the space include Lighthouse Funds’ ₹700 crore investment in Parsons Nutritionals in April 2024, Kotak Alternate Asset Managers’ ₹1,050 crore investment in Tirupati Medicare (March 2025), Pontika Aerotech’s ₹70 crore raise from India SME Investments (October 2024) and Hindustan Foods’ ongoing inorganic growth strategy.
Dark horse
India’s FMCG contract-manufacturing industry has emerged as a dark horse in the past 24 months, partly driven by a transformation from a fragmented low-margin segment into one with moderate to large-scale operations, deep innovation capabilities, diversified product and customer base and exposure to export markets leading to growth and profitability. This has led to significant value creation in the public markets and laid the ground for private equity play, KPMG said in a report last year.
Founded in 1994 by the Bhalotia family, New Delhi-based Wonder Products specializes in research and developmental formulation, 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. As per 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 the VVF Group.
