ITC Ltd is reportedly in early discussions to acquire the Indian subsidiaries of Norway’s Orkla ASA—MTR Foods and Eastern Condiments—for about $1.4 billion (approximately ₹12,100 crore), according to Mint. The move, if it goes through, could give ITC a stronger foothold in India’s spices and ready-to-cook food market.
ITC has been on an expansion spree in this space. Back in 2020, it took over Sunrise Foods, a spices manufacturer. Just this month, it added Prasuma, a brand known for frozen and ready-to-cook foods, to its portfolio. The possible MTR-Eastern acquisition seems to fit into this broader strategy.
Orkla, a Norwegian industrial investment company, has been in India for a while. It bought MTR Foods in 2007 and later took a majority stake in Eastern Condiments in 2020. In 2023, it merged these businesses under Orkla India.
Last year, the company had been considering an initial public offering (IPO) for its Indian arm, but now it appears to be weighing a private sale instead. If talks with ITC don’t work out, Orkla might go back to the IPO route.
MTR Foods and Eastern Condiments are well-established names, particularly in southern states like Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. Together, they contributed over 80% of Orkla India’s Rs 2,400 crore revenue in FY24.
The Indian spice market itself is massive. In 2024, it was valued at ₹2,00,643.7 crore, and by 2033, it’s expected to grow to ₹5,13,253.9 crore at an annual growth rate of 10.56%. Given these numbers, it’s not surprising that ITC, which has been actively growing its fast-moving consumer goods (FMCG) division, is eyeing a bigger slice of the pie.
