The Indian Tobacco Company of India (ITC) Ltd. is one of the largest private players in the market. The company is extremely diversified and operates a variety of ventures ranging from luxury hotels to Fast Moving Consumer Goods (FMCG). The company announced that it will acquire the Spice manufacturing company, Sunrise Foods Private Ltd. (SFPL).
Sunrise Foods is a major player in the spice market, especially in East India. In the statement released by the company, the acquisition of shares cost ITC Rs. 2,150 crores in this all-cash deal. In its regulatory filing, ITC said-
“In addition, the sellers are entitled to contingent consideration of an amount not exceeding Rs 150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones, over a period of two years,”
Sunrise Foods is a Kolkata-based family-owned company engaged primarily in the spice business. Sunrise is a market leader in eastern India in the fast-growing spices category and has a brand legacy of over 70 years. It said-
“ITC's Aashirvaad range of spices has a strong presence in Telangana and Andhra Pradesh and the company is one of India's leading producers and exporters of high-quality food-safe spices. 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,”
Its addition to the ITC portfolio has expanded the company’s presence in the food market where it already operates brands like ‘Aashirvad’. The company has acquired a 100% stake in the brand as of 27th July 2020.
The subsidiaries of SFPL, Sunrise Sheetgrah Pvt Ltd., and Hobbits International Foods Pvt Ltd. have become wholly owned by ITC. The company said that together with synergies arising out of sourcing and supply chain capabilities, ITC’s agribusiness and pan-India distribution will provide significant value creation of the opportunities.
In the Financial term 2019-20, the turnover of SFPL was Rs. 591.50 crores