MTR eyes controlling stake in Eastern Condiments: Report

MTR Foods is working on a deal to buy a controlling stake in Kerala-based Eastern Condiments.

Spices maker Eastern Condiments, promoted by the Meeran family, is valued at Rs 1,800-2,000 crore, according to a report by The Economic Times.

Avendus Capital was hired to structure the transaction, the report said.

Moneycontrol could not independently verify the report.

An MTR spokesperson declined to comment when contacted by The Economic Times. Avendus Capital cofounder Gaurav Deepak had not yet responded to queries.

MTR, a subsidiary of Norwegian conglomerate Orkla, is looking to expand its presence in the market for non-vegetarian spices, ready-to-cook foods and condiments.

"Eastern has an established presence in markets like Uttar Pradesh, Maharashtra, Rajasthan, Kerala and Tamil Nadu, in both the non-vegetarian and vegetarian space. For MTR, the deal would be a scalable one and give it a captive market in the specialised non-vegetarian space as well," an official told the paper.

The Meeran family, who own 74 percent of Eastern Condiments, gave been trying to sell their holding for over a year, the report said.

A deal with Eastern Condiments might help the company compete with brands such as Everest, MDH, Badshah Masala, Catch, Ramdev Masala, Mother’s Recipe and Priya.