ITC signs agreement to acquire frozen food player Prasuma

KOLKATA: Diversified conglomerate ITC has signed definitive agreements for acquisition of Prasuma — one of the leading players in the frozen, chilled and ready to cook food space in India. This would be the fifth major acquisition in the FMCG space in 7-8 years by ITC, after Savlon, Nimyle, Sunrise and Yogabar. ITC will initially acquire 43.8% stake in the company for Rs 131 crore, which translates into a valuation of close to Rs 300 crore for the food company.

According to company presentation, acquisition of initial shares would be through primary subscription and secondary purchases which is expected to close in March, 2025, subject to fulfilment of closing conditions. ITC's equity stake is set to increase to 62.5% by April, 2027 through secondary purchases of Rs 56 crore. ITC will have 100% stake in the company over a period of 3 years.

Prasuma, a specialist in oriental cuisine, delicatessens and raw meat, sells a wide assortment of 170+ products, backed by unparalleled innovation expertise in developing ‘Good-for-You' products. This acquisition will fortify ITC's presence in these future-facing categories.

Prasuma operates through ‘Prasuma', ‘Meatigo by Prasuma' and ‘Prasuma Momo Kitchen' brands. The flagship ‘Prasuma Momos' was launched in 2019. Prasuma has also developed several first-to-market frozen products like baos, Korean fried chicken, schezwan momo meal, Japanese fried rice, etc. With presence in 100+ cities across online and offline channels, Prasuma has scaled up to an Annual Revenue Runrate of about Rs 200 crore.

This investment is in line with the ‘ITC Next' strategy articulated by chairman Sanjiv Puri.

Commenting on the acquisition, ITC Ltd wholetime director Hemant Malik said, "We are delighted to back Prasuma and look forward to jointly building an unparalleled, full stack frozen, chilled and ready to cook foods portfolio. With Good-for-You, first-to-market products, we believe that the combined portfolio will delight our discerning consumers."

Commenting on this transaction, Lisa Suwal, CEO and Siddhant Wangdi, COO of Prasuma, said, "We are extremely proud of what we have built and excited to join hands with ITC to drive the next phase of growth."