Indian consumer-goods giant ITC is to acquire local spice maker Sunrise Foods for an undisclosed sum.
ITC informed the local stock exchange of the deal on Sunday (24 May).
The company said in a statement it has entered into a share-purchase agreement to acquire 100% of the equity share capital of Sunrise Foods Private Limited (SFPL), which operates using the Sunrise trademark.
The statement said: “Sunrise is a clear market leader in eastern India in the fast-growing spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments.
“The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how.”
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Kolkata-based ITC already has a substantial spices business and is perhaps best known in this area for its spice range Aashirvaad.
“The proposed acquisition will augment the company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its spices business and expand its footprint across the country,” it said.
“The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company’s agri-business and its pan-India distribution network, will provide significant value creation opportunities for the company.”
In November, ITC revealed it was acquiring a 33.42% stake in next generation vending-machine company Delectable Technologies for US$1.05m.
