ITC set to acquire Sunrise Foods

NEW DELHI: ITC Ltd on Sunday said it is set to acquire Kolkatabased spice maker Sunrise Foods Pvt. Ltd (SFPL), in a move that will help the company cement its position in the country’s fast-moving consumer goods (FMCG) market.

ITC entered into a share purchase agreement on 23 May 2020 to acquire 100% of the equity share capital of SFPL, a company primarily engaged in the business of spices under the trademark ‘Sunrise’, ITC said in a press release on Sunday.

The move will help ITC expand its FMCG business, which at present spans packaged foods to personal care products.

“The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths through deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages, and packaging knowhow,” the company said.

The acquisition will also help ITC ramp up its spices business in the country. ITC already sells spices under its Aashirvaad brand, popular in markets such as Telangana and Andhra Pradesh.

The company has set a turnover target of ₹1 trillion from its FMCG business by 2030 as it moves to expand revenues beyond its cigarettes business. It already sells popular FMCG brands like Aashirvaad flour, Bingo! chips, B Natural juices, Vivel and Yippee! noodles.

Mint had earlier reported that Sunrise Foods has received interest from global private equity firms to purchase a stake in the company.