INDIAN conglomerate ITC has entered into a Share Purchase Agreement (SPA) to acquire 100 per cent of the equity share capital of West Bengal-based Sunrise Foods for an undisclosed amount.
The proposed deal is subject to the fulfilment of a number of terms and conditions set out in the SPA.
Currently, ITC produces a range spices under the Aashirvaad brand. With this acquisition, it plans to scale up its spices business across India.
Sunrise Foods manufactures spices under the trademark Sunrise which includes both basic and blended spices, and is differentiated based on regional tastes and preferences.
The deal is said to align with ITC’s strategic objective of rapidly scaling up its FMCG businesses, while maintaining profitability.
The company says that the deal will bring together the loyal consumer base and distribution strength of Sunrise Foods in ‘focus markets’ and ITC’s sourcing and supply chain capabilities.
ITC is one of India’s foremost private sector companies with a market capitalisation of nearly $50 billion and gross sales value of $10.8 billion with presence in FMCG, hotels, packaging, paperboards and specialty papers, agri and IT businesses,
Originally founded as a tobacco company, ITC first moved into F&B around two decades ago.