Indian Multinational Conglomerate company, ITC Limited, has entered into a share purchase agreement to acquire a 100 per cent equity in Kolkata-based packaged spice maker, Sunrise Foods Private Limited. ITC said the proposed acquisition is aligned with its strategy to rapidly scale up its FMCG or fast-moving consumer goods businesses. The deal, which is one of the largest for the Company, is subject to the fulfilment of terms and conditions.
What the deal means:
ITC already has a huge presence as a Market Leader in Telangana and Andhra Pradesh. Sunrise Foods, which sells its products under the Sunrise brand, on the other hand, has extensive presence across East India, where it is the market leader, and also operates in Uttar Pradesh, Delhi National Capital Region, Rajasthan, and Bengaluru. It also sells its products in Bangladesh and Nepal. With the proposed purchase, ITC will gain inroads into all these markets. The current deal also would provide a push to the Company’s plans to not only rapidly scale up their FMCG business but also balance their revenue into non tobacco business verticals as well. The deal could very well be a step towards the Company achieving its target of Rs 1 lakh crore in revenue from its FMCG business by 2030.