The global conglomerate ITC Ltd is allegedly in preliminary talks with Orkla ASA of Norway to purchase its Indian businesses, MTR Foods Pvt Ltd and Eastern Condiments Pvt Ltd, for about $1.4 billion. This possible acquisition fits with ITC’s plan to increase its market share in the food industry in southern India
ITC has been aggressively growing in the spices and ready-to-cook food sectors, while maintaining a diversified portfolio that includes FMCG, hotels, and agro. The company recently announced that it will buy Prasuma, a brand that specializes in frozen and ready-to-cook foods, in February 2025. In 2020, it bought Sunrise Foods, a manufacturer of spices.
Orkla ASA, a Norwegian industrial investment firm, entered the Indian market by acquiring MTR Foods in 2007 and later expanded by purchasing a majority stake in Eastern Condiments in 2020. In October 2023, Orkla consolidated its Indian operations—MTR, Eastern, and its international business—under Orkla India.
Both MTR Foods and Eastern Condiments have a strong market presence in the ready-to-cook and spices segments, particularly in southern states like Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. If ITC successfully acquires these brands, it would gain a substantial advantage in these regions. Orkla is currently determining if a private sale would provide a superior valuation, despite having previously contemplated an initial public offering (IPO) for its Indian business as recently as September 2024. Orkla might choose to go public if talks with ITC don’t work out.
If the deal goes through, ITC would bolster its position against rivals like Everest and MDH in the spices industry and greatly increase its market footprint in southern India’s food sector. But the agreement hasn’t been formally verified by Orkla or ITC.
