MTR Foods Parent Prepares For IPO With Major Board Restructuring
Norway's Orkla ASA has restructured the board of its India subsidiary by appointing four non-executive independent directors ahead of its planned initial public offering that may generate up to $400 million.
The owner of MTR and Eastern Spices brands is currently working with advisers on the potential share sale and may file for an IPO as soon as the first quarter of fiscal 2026, according to people familiar with the matter.
The newly appointed directors include consulting coach Rashmi Joshi, former L'Oreal chairman Amit Jain, former P&G CEO Shantanu Khosla, and Portea Medical MD & CEO Meena Ganesh, Orkla India said in a statement. These appointments complement the existing directors on the board of Orkla India, which includes chairman Atle Vidar Nagel Johansen, CEO Sanjay Sharma, along with Maria Syse-Nybraaten and Per Havard Skiaker Maelen, resulting in a comprehensive eight-member board.
"The expanded board structure strengthens Orkla India's corporate governance framework in line with its strategic growth objectives," it said.
In July last year, the company had said that it had initiated a process to consider structural opportunities for the Indian business, including conducting an IPO readiness study. "The results of the study are encouraging. And we will now proceed with an evaluation of accessing the capital markets in India. Any conclusion should not be expected until sometime 2025," Orkla CEO Nils K Selte had told investors.
The board restructuring also implies that talks of a potential private sale may have stalled due to unfavorable valuations, prompting the company to stick to its IPO plan. Recent reports suggested that ITC Ltd. was in discussions with Orkla to acquire MTR Foods Pvt. Ltd and Eastern Condiments Pvt. Ltd for about $1.4 billion.
India's rich valuations have lured several foreign firms to list their local arms. Orkla's potential IPO will follow South Korea's Hyundai Motor Co.'s Indian business' listing that raised Rs 27,870 crore in the country's biggest IPO. The Indian unit of LG Electronics Inc. has also filed for IPO, aiming to raise as much as Rs 15,000 crore.
Orkla entered India in 2007 by acquiring MTR Foods and, five years later it bought a majority stake in Kerala-based spice maker Eastern Condiments.
In October 2023, the Oslo-based company rejigged its Indian operations, consolidating its three business units—MTR, Eastern and international business — into a single entity named Orkla India in a bid to enhance their collective business strengths and expedite growth, paving the way for listing plans. As of FY24, Orkla India sales stood at Rs 2,342 crore, a 9% dip over the previous year. Net profit of the company fell 34% to Rs 224 crore.
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