The ITC Limited has entered into a Share Purchase Agreement (SPA) to acquire 100% of the equity share capital of Sunrise Foods Private Ltd (SFPL), which is into spices under the trademark ‘Sunrise’ for an unspecified amount.
The acquisition is subject to fulfilment of various terms and conditions as specified in the SPA.
Sunrise is a market leader in eastern India in the spices category with a legacy of over 70 years.
“The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths,” the company said in a statement.
The ITC’s Aashirvaad range of spices is popular in Telangana and Andhra Pradesh and it is one of India’s leading producers and exporters of high-quality spices.
“The proposed 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 company said.
“The deep consumer connect and distribution strength of SFPL 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,” the statement added.
The proposed transaction is also in line with the ITC’s philosophy of enhancing the competitiveness of agri value chains in India whilst making a meaningful contribution to enhancing farmer incomes,” it said.
Finalisation of the SPA along with related processes was completed during the lockdown.