ITC in talks to acquire MTR Foods, Eastern Condiments for $1.4 billion: Report

The potential acquisition aligns with ITC’s strategy to expand its footprint in key southern markets.

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 valued at approximately $1.4 billion, Mint reported, citing two people familiar with the matter. The potential acquisition aligns with ITC’s strategy to expand its footprint in key southern markets.

Orkla had previously considered an IPO for its Indian business as recently as September 2024 but is now evaluating a majority stake sale through a private deal if it secures a better valuation, according to the Mint report. The Norwegian company, which entered the Indian market by acquiring MTR in 2007 and Eastern in 2020, is yet to drop the IPO option entirely. If the private sale does not yield a favorable valuation, Orkla may proceed with the public listing.

A spokesperson for Orkla, based in Oslo, declined to comment on "unfounded market rumors or speculation" in response to a Mint query. Meanwhile, ITC has not responded to requests for comment, including queries sent to its chairman and managing director, Sanjiv Puri. Moneycontrol could not independently verify the report.

For ITC, which recently acquired FMCG brand Prasuma, the acquisition of MTR Foods and Eastern Condiments would strengthen its presence in the spices and ready-to-cook food categories. These brands are market leaders in Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala, generating over 80% of Orkla India's Rs 2,400 crore revenue in FY24, as per Mint.

MTR Foods, originally launched by Bengaluru’s Maiya family in 1950, has diversified over the years and now sells products internationally in markets such as North America, West Asia, Japan, and parts of Southeast Asia.