ITC Ltd. agreed to buy 100 percent stake in Sunrise Foods Pvt. Ltd. for an undisclosed amount as it strengthens its spices portfolio in eastern India.
The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG business in a profitable manner, according to a filing by the maker of cigarettes to staples. Sunrise Foods will leverage on ITC's deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how, it said.
ITC already makes Aashirvaad-branded spices and the company said it's the market leader in Telangana and Andhra Pradesh. The Sunrise Foods deal will boost its share in the east.
According to a Crisil Ratings report, Sunrise Foods, with popular brands such as Sunrise, Jump and Mewaram, is an established player in the organised spice industry in West Bengal. Its revenue jumped 25.5 percent to Rs 502 crore in 2018-19, Crisil said.
For ITC, the company said, the acquisition is a step towards achieving its target of Rs 1 lakh crore in revenue from its FMCG business by 2030.
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