Massive Acquisition in the Food Industry – Rs 10,000 Crore Industry Sees a Game-Changing Takeover

A major acquisition is set to change the way frozen and chilled foods reach consumers.

Acquisition Overview
ITC Limited has signed definitive agreements to acquire 100 per cent stake in Ample Foods Private Limited (AFPL) and Meat and Spice Private Limited (MSPL), which together operate under the Prasuma and Meatigo brands. The acquisition will be completed in phases over three years, strengthening ITC’s presence in the frozen, chilled, and ready-to-cook foods market.

Business Operations of Prasuma and Meatigo
Prasuma is known for its frozen momos, baos, Korean fried chicken, and other ready-to-cook meals, while Meatigo specializes in premium raw meats, marinades, and cheese. Their products are available through both online and offline channels. Prasuma also operates cloud kitchens under the name ‘Prasuma Momo Kitchen.’

Financial Details of the Acquisition
ITC will invest approximately Rs 131 crores initially for a 43.8 per cent stake in AFPL, followed by further investments to reach 62.5 per cent by April 2027. The final tranche, including full acquisition of MSPL, will be completed by June 2028. The total investment will be determined based on agreed valuation metrics.

Market Growth and Strategic Benefits
India’s frozen, chilled, and ready-to-cook foods market is estimated at over Rs 10,000 crores and is expected to grow rapidly. This acquisition aligns with ITC’s strategy of expanding its food business and strengthening its product portfolio. The integration of Prasuma and Meatigo will allow ITC to cater to a wider customer base and leverage its distribution network.

ITC’s Q3 FY25 Financial Performance
ITC reported an 8.4 per cent YoY increase in gross revenue, reaching Rs 18,953 crores. EBITDA grew by 2.9 per cent YoY to Rs 6,197 crores, and PAT rose by 1.2 per cent YoY to Rs 5,638 crores. The cigarette segment grew by 8.1 per cent, while the hotels business recorded its best-ever quarter with a 14.6 per cent revenue growth.

Conclusion
The acquisition of Prasuma and Meatigo will enhance ITC’s position in the fast-growing frozen and ready-to-cook food market. With its strong distribution and brand-building expertise, ITC aims to capitalize on the increasing demand for convenient and high-quality food products in India.