ITC acquires Indian spices manufacturer Sunrise Foods for $290m
Indian conglomerate ITC has completed the acquisition of Sunrise Foods (SFPL), a spices manufacturer, in an all-cash deal worth INR 21.5 billion ($290 million).
The deal was announced in May 2020 with the companies then signing a share purchase agreement.
As per the deal terms, the sellers of the Kolkata-based Sunrise Foods are also eligible to receive contingent consideration of up to INR 1.50 billion ($20 million), which is payable upon the spices manufacturer achieving mutually agreed operational and financial milestones over a period of two years.
Following the acquisition, Sunrise Sheetgrah and Hobbits International Foods owned by Sunrise Foods have now become fully-owned subsidiaries of ITC.
Sunrise Foods is claimed to be a major player in eastern India in the spices category with a history of more than 70 years.
According to ITC, the spices manufacturer has developed a loyal consumer franchise, both in the basic and blended spice segments, over the years.
ITC acquires Indian spices manufacturer Sunrise Foods for $290m. Photo courtesy of ranjeet Singh from Pixabay.
The Indian conglomerate said that its Aashirvaad range of spices has strong footprint in Telangana and Andhra Pradesh and the company is among the top producers and exporters of high-quality food safe spices in India.
ITC, in a statement, said: “The acquisition will augment the Company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country. The deep consumer connect of Sunrise in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the Company’s Agri Business and its pan-India distribution network, will provide significant value creation opportunities for the Company.”
Sunrise Foods has spices manufacturing plants at Kolkata, Agra, Jaipur, Sumerpur, Bikaner, and Erode. Some of its spices products are chana masala, sambar masala, meat masala, pav bhaji masala, tadka masala, biryani pulav masala, shahi garam masala, paneer butter masala, and generic spices such as turmeric powder, chilli powder, , mewarams papad, cumin powder, coriander powder, mustard powder, hing, hing dust, mustard oil, and others.
The Indian spices manufacturer had a turnover of 591.50 crores in 2019-20.