ITC negotiating $1.4B MTR, Eastern acquisition deal
ITC Ltd is said to be in early-stage talks with Norway-based Orkla ASA to buy its Indian units, MTR Foods Pvt. Ltd and Eastern Condiments Pvt. Ltd, for around $1.4 billion. The acquisition is ITC’s strategy to consolidate its foothold in the southern Indian market. Orkla had contemplated listing its Indian business through an initial public offering (IPO), but now is mulling a private deal to sell the majority stake. If the valuation of the private sale is not acceptable, Orkla can go ahead with the IPO.
MTR Foods and Eastern Condiments are market leaders in the ready-to-cook food and spice businesses, particularly in Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. Orkla India’s two units contributed over 80% of its sales of over ₹2,400 crore in fiscal 2024. An acquisition would consolidate ITC’s control in the food business, particularly in southern states, while complementing its existing strength in the eastern and northern states.
The Indian spice industry was valued at ₹2,00,643.7 crore in 2024 and is expected to be ₹5,13,253.9 crore by 2033, growing at a CAGR of 10.56%. Such expansion has huge potential for the likes of ITC to increase its presence in the country.
It is good to remember that all such speculation is in its nascent stages, and no guarantees can be made that a deal will be reached.
