INDIA – ITC Limited, a diversified fast-moving consumer goods and agribusiness company in India has entered into a share purchase agreement to acquire Sunrise Foods Private Limited, a company primarily engaged in the business of spices under the trademark ‘Sunrise’.
ITC said that the proposed acquisition, subject to fulfilment of various terms and conditions, is aligned with its strategy to rapidly scale up its FMCG businesses in a profitable manner.
Sunrise is one of the market leaders 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 both in the basic and blended spice segments.
ITC also boasts of a strong institutional presence with a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge as well as strong rural linkages and packaging know-how.
The company also produces a range of spices under the brand Aashirvaad. ITC already ranks as a market leader in some of the Indian local markets including Telangana and Andhra Pradesh. ITC is also one of India’s leading producers and exporters of spices.
ITC also has a broad portfolio of branded packaged Staples, Snacks, Meals, Biscuits, Cakes and Confectionery under brands such as Aashirvaad flour, Bingo! Chips, B Natural brand of juices, Vivel soaps, Savlon, and Yippee! noodles among others.
The company said that the proposed acquisition will further augment its product portfolio and is part of ITC’s strategic move to significantly scale up its spices business and expand its footprint across the country.
“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,” ITC said in a statement.
“The proposed transaction is also in line with ITC’s philosophy of enhancing the competitiveness of Agri value chains in India whilst making a meaningful contribution to enhancing farmer incomes,” the company added.
In the first quarter of the year, ITC posted a steady performance growth with gross revenue for the quarter climbing 5% to Rs. 11912.16 crores (US$1.57 billion), driven mainly by it hotels business, agribusiness operations and and FMCG business.