 "ITC in talks to acquire MTR Foods and Eastern Condiments in $1.4 bn deal")
Diversified conglomerate ITC Ltd is in early discussions with Norway’s Orkla ASA to acquire its Indian subsidiaries, MTR Foods Pvt Ltd and Eastern Condiments Pvt Ltd, for approximately $1.4 billion, according to a report by Mint. This move aims to strengthen ITC’s presence in the southern Indian market.
Known for its diversified portfolio spanning FMCG, hotels, and agribusiness, this potential acquisition for ITC represents a strategic move to bolster its offerings in the food segment, particularly in southern India.
The company has been actively seeking opportunities to expand its presence in the spices and ready-to-cook food sectors. As part of its efforts, ITC acquired Sunrise Foods, a spices manufacturer, in 2020, and more recently, in February 2025, announced the acquisition of Prasuma, a brand specialising in frozen and ready-to-cook foods.
Orkla ASA and its Indian subsidiaries
Orkla ASA is a Norwegian industrial investment company that entered the Indian market by acquiring MTR Foods in 2007 and later expanded its footprint by purchasing a majority stake in Eastern Condiments in 2020. In October 2023, Orkla restructured its Indian operations, consolidating MTR, Eastern, and its international business into a single entity named Orkla India.
MTR Foods and Eastern Condiments have established strongholds in the ready-to-cook and spices segments, particularly in the southern states of Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala.
Their combined market presence would provide ITC with a significant advantage in these regions.
Initially, Orkla had contemplated an initial public offering (IPO) for its Indian business as recently as September 2024. However, the company is now evaluating whether a private sale could yield a more favourable valuation. If the negotiations with ITC do not result in an agreeable outcome, Orkla may proceed with the IPO as an alternative strategy, Mint reported.
Indian spice market
The Indian spices market is substantial, with a valuation of Rs 2,00,643.7 crore in 2024 and projections to reach Rs 5,13,253.9 crore by 2033, reflecting a compound annual growth rate (CAGR) of 10.56 per cent during this period.
Should the deal materialise, ITC would significantly enhance its footprint in the southern Indian food market, positioning itself as a strong competitor against established brands like Everest and MDH in the spices sector. Neither entity has confirmed reports on potential acquisition.