ITC to acquire 100% stake in frozen foods brand Prasuma

ITC Ltd, the maker of Aashirvaad atta, Bingo chips and Sunfeast biscuits, has announced plans to 100% acquire popular frozen foods brand Prasuma.

The acquisition will happen via multiple tranches over three years, the company said.

Initially, ITC will acquire a 43.8% stake in Ample Foods Pvt. Ltd (AFPL), the parent company of Prasuma, along with its subsidiary Chao Chao Foods Pvt. Ltd and associate company Meat and Spice Pvt. ltd (MSPL).

In this phase, the company will invest Rs131 crore through primary subscription and secondary purchases, which is expected to be completed by this March.

By April 2027, ITC will raise its stake to 62.5% with an additional Rs56 crore investment. Following this, a final tranche to acquire the remaining 37.5% will be happen by June 2028, subject to valuation criteria and regulatory approvals, the company said.

Prasuma is a popular name in the frozen foods sector. Known for its frozen momos, baos, and Korean fried chicken, the company operates across online and offline channels in more than 100 cities.

Prasuma reported a consolidated turnover of Rs131 crore for FY24 and an annual revenue run rate of Rs200 crore for the past three months.

“This strategic investment reinforces ITC’s commitment to scaling its presence in emerging growth categories,” ITC Ltd said in a statement.

Prasuma’s expansion plans include entering the cloud kitchen segment with its ‘Prasuma Momo Kitchen’ outlets. The company also operates the direct-to-consumer platform Meatigo for premium meat products.