ITC Ltd is in preliminary discussions with Norway’s Orkla ASA to acquire its Indian businesses, MTR Foods Pvt. Ltd and Eastern Condiments Pvt. Ltd, in a deal valued at approximately $1.4 billion, as per reports from Mint. This potential acquisition is seen as part of ITC’s strategy to increase its presence in the southern regions of India, where MTR Foods and Eastern Condiments have established strong market leadership.
Orkla, which owns both brands, had previously explored the option of taking its Indian business public by considering an IPO as recently as September 2024. However, the Norwegian company is now leaning toward selling a majority stake through a private deal if it can secure a better valuation in the process. While Orkla has not entirely ruled out the IPO route, the potential private sale remains a key option for the company at this stage, according to the Mint report.
MTR Foods was founded in 1950 by Bengaluru’s Maiya family and later acquired by Orkla in 2007. Over the years, the brand has expanded its offerings and reached international markets, including North America, West Asia, Japan, and Southeast Asia. Alongside MTR Foods, Orkla also acquired Eastern Condiments in 2020. Both brands are particularly dominant in southern India, contributing to over 80% of Orkla India’s Rs 2,400 crore revenue for FY24.
The acquisition of MTR Foods and Eastern Condiments would significantly strengthen ITC’s position in the spices and ready-to-cook food categories, complementing its existing portfolio. ITC, which recently acquired the FMCG brand Prasuma, has shown increasing interest in expanding its food business, and acquiring these well-established brands would bolster its footprint in key markets.