ITC Ltd is in early discussions with Norway’s Orkla ASA to acquire its Indian businesses, MTR Foods Pvt. Ltd and Eastern Condiments Pvt. Ltd, in a deal worth approximately $1.4 billion, as stated by a Mint report.
The acquisition would bolster ITC’s presence in key southern markets, aligning with its FMCG expansion strategy. Orkla, which acquired MTR in 2007 and Eastern in 2020, had considered an IPO for its Indian business but is now exploring a private stake sale for better valuation. If negotiations do not meet expectations, the IPO remains an option.
For ITC, which recently acquired FMCG brand Prasuma, the deal would strengthen its foothold in the spices and ready-to-cook categories. MTR and Eastern dominate markets in Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala, contributing over 80% of Orkla India’s Rs 2,400 crore revenue in FY24, per Mint.
Founded in 1950 by Bengaluru’s Maiya family, MTR Foods has expanded globally, with exports to North America, West Asia, Japan, and Southeast Asia.
