MTR-owner Orkla India eyes deals, bets on quick meals, delivery for growth

Orkla India, the owner of the MTR and Eastern spice brands, is eyeing acquisitions to expand its portfolio, and banking on quick-delivery platforms and demand for ready-to-eat meals to drive double-digit revenue growth, its CEO said. 

Dealmaking in the consumer goods and retail sector has picked up as large groups chase growth, reaching a four-year high for January-September led by the food and beverages category, according to investment bank Equirus Capital. 

Top transactions include Tilaknagar Industries' $486 million purchase of the Imperial Blue whisky brand from France's Pernod Ricard and Singapore-based Wilmar International's $832 million stake deal in AWL Agri Business. 

"We are on the lookout for more M&A targets (that strongly reflect the local culture and food)... Anything that starts at ₹100 crore -₹200 crore (about $11 million-$22 million), going up to any size," Sanjay Sharma, CEO and managing director at Orkla India, told Reuters on Thursday. 

The company has enough cash and can raise more money to finance deals, Sharma added. 

The Indian arm of Norwegian consumer goods group Orkla, which merged MTR and Eastern in 2023, expects to return to its historical double-digit revenue growth in fiscal 2026 and beyond. It last reported such a rise in fiscal 2023. 

"We expect convenience foods (segment) to grow faster, because we are putting much, much more effort, and we are starting to see that e-commerce is growing much faster," Sharma said. 

Sales from online channels jumped 47 per cent last financial year, lifting their share of Orkla India's domestic sales to 7.5 per cent from 5.1 per cent a year earlier. 

Hyperfast delivery apps such as Eternal's Blinkit, Zepto and Swiggy's Instamart have defied a consumption slowdown, delivering everyday essentials within minutes in large cities. 

Sharma also said rising incomes and the need for convenience among youngsters and double-income households should help its convenience foods business to outpace its spices portfolio. 

The group's convenience foods business, which sells vermicelli and ready-to-cook breakfast kits, made up 33.4 per cent of revenue last year, up from 31.5 per cent a year earlier, with its spices portfolio accounting for the rest.