Indian conglomerate ITC has announced its strategic acquisition of Prasuma, aiming to strengthen its presence in the frozen, chilled, and ready-to-cook food manufacturing sectors.
In a recent stock-exchange filing, ITC emphasized that these categories are “future-facing,” currently boasting an annual market size of over Rs100bn ($1.14bn) and are expected to experience rapid growth in the coming years.
ITC will fully take control of Prasuma from its current owners—Ample Foods, along with its subsidiary Chao Chao Foods and Meat and Spice—in three phases over the next three years.
The initial tranche consists of an immediate acquisition of a 43.8% equity stake for Rs1.31bn. Subsequently, the remaining shares will be acquired in successive tranches until June 2028.
Commenting on the collaboration, Prasuma CEO Lisa Suwal and COO Siddhant Wangdi stated: “With Prasuma’s strength in manufacturing and innovation, combined with ITC’s expertise in distribution and building new-age brands, we are excited about the significant value that this collaboration will create for consumers in India and globally.”
Prasuma offers a diverse range of over 170 products under its brand, in addition to Meatigo by Prasuma and Prasuma Momo Kitchen, catering to consumers in more than 100 cities.
ITC entered the frozen foods market in 2019 with the launch of its ‘ITC Master Chef’ brand. This acquisition of Prasuma bolsters ITC’s presence in the food manufacturing sector.
Additionally, ITC aims to redefine the frozen food category with Prasuma’s innovative frozen products, which include Baos, Korean Fried Chicken, Schezwan Momo meals, and Japanese Fried Rice.
ITC Director Hemant Malik stated: “With good-for-you, first-to-market products across various cuisines, we believe that the combined portfolio will delight our discerning consumers. This investment reaffirms our commitment to building future-facing, best-in-class, innovative portfolios.”
