Kolkata-based conglomerate ITC Ltd. is set to acquire Prasuma, a premium brand known for its wide range of frozen and ready-to-eat products, including momos, baos, Korean fried chicken, delicatessens, and raw meats. With a portfolio of over 170 products, Prasuma has established itself as a strong player in the processed foods sector, making it a strategic addition to ITC’s expanding food business.
Acquisition Plan
As part of the deal, ITC will acquire a 100% stake in Prasuma over the next three years. The acquisition will be carried out in multiple phases:
- An initial 43.8% stake will be acquired upfront.
- The remaining stake will be purchased in tranches, with the process expected to be completed by June 2028, based on pre-determined valuation criteria.
Strategic Growth in Frozen Foods
With this acquisition, ITC aims to strengthen its foothold in the growing frozen and processed foods segment. The company has been expanding its presence in the packaged food industry, and adding Prasuma to its portfolio will allow it to leverage the rising demand for high-quality, ready-to-eat products in India.
The move aligns with ITC’s broader strategy of diversifying beyond its core businesses and tapping into emerging consumer trends. As frozen and convenience foods gain popularity, this acquisition positions ITC to capitalize on the category’s rapid growth and evolving consumer preferences.
ITC’s acquisition of Prasuma marks a significant step in its journey to expand in the value-added foods market. By integrating Prasuma’s premium offerings into its portfolio, ITC is well-positioned to enhance its market share, drive innovation, and cater to India’s growing demand for high-quality frozen and convenience foods.
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