ITC is in preliminary discussions with Norway’s Orkla ASA to acquire two of its brands as part of its efforts to expand its presence in the southern Indian spice market.
ITC’s Strategic Expansion in the Food Sector 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. This potential acquisition aligns with ITC’s strategy to strengthen its presence in the southern Indian market and expand its footprint in the food industry.
With a diversified portfolio spanning FMCG, hotels, and agribusiness, ITC aims to bolster its offerings in the spices and ready-to-cook food segments. The company previously acquired Sunrise Foods, a major spice manufacturer, in 2020 and recently acquired Prasuma, a brand specializing in frozen and ready-to-cook foods, in February 2025.
Orkla ASA and Its Indian Operations Orkla ASA, a Norwegian industrial investment company, entered the Indian market by acquiring MTR Foods in 2007. It later expanded its presence by acquiring a majority stake in Eastern Condiments in 2020. In October 2023, Orkla consolidated its Indian businesses—MTR, Eastern, and its international operations—under the entity Orkla India.
MTR Foods and Eastern Condiments have a significant market presence in the ready-to-cook and spices segments, especially in the southern states of Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala.
Market Impact and Future Strategies Orkla had previously considered an initial public offering (IPO) for its Indian business in September 2024 but is now exploring the possibility of a private sale to ITC for better valuation. If the negotiations with ITC do not lead to an agreement, Orkla may proceed with the IPO as an alternative strategy.
The Growing Indian Spice Market The Indian spices market was valued at Rs 2,00,643.7 crore in 2024 and is projected to grow to Rs 5,13,253.9 crore by 2033, with a compound annual growth rate (CAGR) of 10.56%.
If this acquisition materializes, ITC will significantly expand its presence in the southern Indian food market and strengthen its position against established spice brands like Everest and MDH. However, neither ITC nor Orkla has confirmed the acquisition reports at this stage.
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