New Delhi, Feb. 7 -- FMCG giant ITC Ltd will acquire frozen food producers Ample Foods Pvt. Ltd and Meat and Spice Pvt. Ltd to augment its diversified product portfolio and meet demand in the high-growth segments of frozen, chilled, and ready-to-cook foods.
The cookies-to-cigarettes conglomerate said in a stock-exchange filing that it will acquire a majority stake in Gurugram-based Ample Foods for Rs 187 crore (about $21.4 million) and subsequently gain full control.
Ample Foods and Meat and Spice retail their products under the brand names of 'Prasuma' and 'Meatigo.' Meat and Spice holds a 43% stake in Ample Foods.
"In line with the strategy to augment the company's future-ready portfolio, the transaction will fortify ITC's presence and market standing in the high-growth segments of the frozen, chilled, and ready-to-cook foods industry in India, which is currently estimated at over Rs 10,000 crore and is poised for rapid growth in the years ahead," ITC said.
The acquisition will be completed in one or more tranches over the next three years.
Initially, ITC will acquire 43.8% of Ample Foods for Rs 131 crore through primary and secondary purchases that will be completed by March. Another 18.7% will be acquired through secondary purchases for Rs 56 crore by April 2027, ITC said. The remaining stake in the company and 100% of the stake in Meat and Spice will be completed by June 30, 2028.
ITC said its investment is in line with its 'ITC Next' strategy aimed at building a future ready portfolio of products to cater to the evolving consumer patterns.
"With the industry at an inflection point, this acquisition will help strengthen and expand ITC's presence in the aforesaid categories by gaining entry into high growth segments, viz. pan Asian foods, deli meats, etc," ITC said.
Ample Foods' Prasuma has over 170 stock keeping units and specializes in oriental cuisine such as momos, baos, Korean fried chicken, and raw meats. The brand has also developed several frozen products like schezwan momo meal and Japanese fried rice. In 2023-24, Ample Foods clocked a 17% increase in revenue to Rs 116 crore.
Meatigo sells frozen food, gourmet meat and cheese products. In 2023-24, it posted revenue of Rs 44 crore.
The acquisitions will enable ITC to become a "full stack player" in the frozen foods segment, adding to its existing frozen foods brand ITC Master Chef, the statement said. ITC Master Chef was launched in 2019, providing over 50 ready-to-cook frozen food varieties.
Published by HT Digital Content Services with permission from VC Circle.