ITC Ltd Expands Frozen Foods Portfolio with Prasuma Acquisition Strategy

ITC Ltd, a diversified conglomerate, has announced its plan to fully acquire Prasuma, a prominent name in the frozen, chilled, and ready-to-cook foods market. This move aims to expand ITC's presence in the Rs 10,000 crore sector. By April 2027, ITC will invest approximately Rs 187 crore to secure a 62.5% stake in Prasuma. The valuation for the remaining 37.5% will be determined later.

Representative image

The acquisition will occur in several phases over three years. Initially, ITC will purchase a 43.8% stake in Ample Foods Private Limited (AFPL), which owns Prasuma. AFPL also includes its subsidiary Chao Chao Foods Private Limited and associate company Meat and Spice Private Limited (MSPL). The first phase involves an investment of Rs 131 crore through primary subscription and secondary purchases, expected by March 2025.

Investment Strategy and Future Plans

ITC plans to increase its equity stake in Prasuma to 62.5% by April 2027 with an additional Rs 56 crore investment based on a pre-agreed valuation. The final phase will see ITC acquiring the remaining 37.5% stake and a full stake in MSPL by June 2028, pending valuation criteria and regulatory approvals.

Prasuma is renowned for its premium frozen momos, baos, Korean fried chicken, and delicatessen meats under the ‘Meatigo’ brand. It has established a strong presence across both online and offline retail channels in over 100 cities. The company is also set to expand into cloud kitchens with its ‘Prasuma Momo Kitchen’ outlets.

Market Presence and Financial Performance

Prasuma reported an annual revenue run rate of approximately Rs 200 crore, with a consolidated turnover of Rs 131 crore in FY24. Commenting on the acquisition, Hemant Malik, Wholetime Director at ITC, stated, "We are delighted to back Prasuma and jointly build an unparalleled, full-stack frozen, chilled, and ready-to-cook foods portfolio. This investment is in line with ITC’s strategy to strengthen its presence in high-growth consumer segments."

Lisa Suwal, CEO of Prasuma, expressed confidence in the partnership with ITC. She believes that ITC’s distribution network and brand-building expertise will significantly boost Prasuma's growth trajectory.

Strategic Expansion in Frozen Foods

ITC entered the frozen foods market in 2019 with its ‘ITC Master Chef’ brand, offering a variety of frozen Indian and Western snacks. With this acquisition, ITC aims to become a comprehensive player in the Rs 10,000 crore frozen, chilled, and ready-to-cook foods industry by leveraging synergies between ITC Master Chef and Prasuma.

This strategic move aligns with ITC's broader goal of strengthening its footprint in high-growth consumer segments through targeted investments and acquisitions.