ITC to acquire Prasuma, expanding footprint in frozen, ready-to-cook foods

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Diversified conglomerate ITC Ltd has signed definitive agreements to acquire a 100 per cent stake in Prasuma, a leading brand in the frozen, chilled, and ready-to-cook foods segment, for greater footprint in the Rs 10,000 crore sector.

The company announced on Thursday that by April 2027, it will invest around Rs 187 crore to acquire 62.5 per cent of Prasuma. 

The valuation for the remaining 37.5 per cent will be decided at a later date.

The acquisition will be carried out in multiple tranches over three years.

In the first phase, ITC will acquire a 43.8 per cent stake in Ample Foods Private Limited (AFPL), which owns the Prasuma brand, along with its subsidiary Chao Chao Foods Private Limited and its associate company Meat and Spice Private Limited (MSPL).

The initial investment of Rs 131 crore will be made through a combination of primary subscription and secondary purchases, expected to be completed by March 2025.

ITC's equity stake in Prasuma will subsequently increase to 62.5 per cent by April 2027 through an additional Rs 56 crore investment based on a pre-agreed valuation.

The final tranche will see ITC acquiring the remaining 37.5 per cent stake, along with a 100 per cent stake in MSPL, expected by June 2028, subject to valuation criteria and regulatory approvals.

Prasuma, known for its premium frozen momos, baos, Korean fried chicken, and delicatessen meats under the Meatigo' brand, has a strong presence across online and offline retail channels in over 100 cities.

The company will also expand into cloud kitchens with its Prasuma Momo Kitchen' outlets. 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 deal, Hemant Malik, Wholetime Director at ITC, said, 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, stating that ITC's distribution and brand-building expertise would help accelerate the brand's growth.

ITC entered the frozen foods market in 2019 under the ITC Master Chef' brand, offering a range 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, leveraging synergies between ITC Master Chef and Prasuma.