ITC has today signed definitive agreements for acquisition of Prasuma1, a leading player in the frozen, chilled, and ready to cook foods space in India.
Prasuma, a specialist in oriental cuisine (viz. momos, baos, Korean fried chicken), high quality delicatessens and raw meats, etc., sells a wide assortment of 170+ products, backed by unparalleled innovation expertise in developing ‘Good-for-You’ products. This acquisition will further fortify ITC’s presence in these future-facing categories, with current annual market size of over Rs. 10,000 crores and poised for rapid growth in the years ahead.
ITC will acquire 100% stake in Prasuma over a period of 3 years. The first tranche of 43.8% stake shall be acquired upfront and balance stake will be acquired, in tranches, by June, 2028, basis pre-defined valuation criteria and subject to other conditions as stated in the definitive agreements.
Prasuma operates through ‘Prasuma’, ‘Meatigo by Prasuma’ and ‘Prasuma Momo Kitchen’ brands. The flagship ‘Prasuma Momos’ were launched in 2019 – an industry first innovation – garnering leading retail market position in the frozen momos category within a short span of time.
Prasuma has also developed several first-to-market frozen products like Baos, Korean Fried Chicken, Schezwan Momo meal, Japanese Fried Rice, etc. and caters to a variety of consumption occasions through innovative and differentiated product offerings.
Meatigo, on the other hand, offers consumers access to high quality delicatessens and raw meats through its own D2C platform (www.meatigo.com). Prasuma Momo Kitchen offers high quality Pan Asian offerings through 40 cloud kitchens. Prasuma, with presence in 100+ cities across online and offline channels, has scaled up to an Annual Revenue Runrate of about Rs. 200 cr. (trailing 3 months basis).
ITC had entered the Frozen Foods market in 2019 under ‘ITC Master Chef’ brand. Within 5 years of launch, ITC Master Chef has grown rapidly and has established itself as one of the leading Frozen Foods brands, offering a range of 50+ easy to cook nutritious and tasty frozen Western and Indian snacks and Indian breads.
Available across 200+ towns, ITC Master Chef caters to both Retail and Food Service customers. With the industry at an inflection point, this acquisition will help strengthen and expand ITC’s presence in the aforesaid categories by gaining entry into high growth segments, viz. Pan Asian foods, Deli meats, etc. With the proposed acquisition, ITC will become the first full stack player in the segment with an unparalleled portfolio, offering meals and snacking options across multiple occasions throughout the day for the discerning consumer.
ITC Master Chef and Prasuma shall also benefit from significant synergies through well designed institutional mechanisms and enablers. This investment is in line with the ‘ITC Next’ strategy articulated by Chairman, Mr. Sanjiv Puri, that focusses on building a future ready portfolio of products that serves evolving consumer needs.
Commenting on this acquisition, Mr. Hemant Malik, Whole time Director, ITC Limited stated, “We are delighted to back Prasuma and look forward to jointly building an unparalleled, full stack frozen, chilled and ready to cook foods portfolio. With Good-for-You, first-to-market products, across cuisines, we believe that the combined portfolio will delight our discerning consumers. This investment reaffirms our commitment to building future facing, best in class, innovative portfolios.”
Commenting on this transaction, Ms. Lisa Suwal, CEO and Mr. Siddhant Wangdi, COO of Prasuma, said, “We are extremely proud of what we have built and excited to join hands with ITC to drive the next phase of growth. The overwhelming support and love for our products from consumers have always inspired us. ITC shares our commitment to quality and innovation, making them the perfect partner.
Frozen food is a category of the future. With Prasuma’s strength in manufacturing and innovation, combined with ITC’s expertise in distribution and building new-age brands, we are excited about the significant value that this collaboration will create for consumers in India and globally.”