ITC to acquire momo maker Prasuma
In a move that is expected to strengthen its presence in the ready-to-cook food market, ITC Limited has signed definitive agreements for the acquisition of Prasuma, a leading player in frozen, chilled and ready-to-cook foods like momos and baos. Under the deal, ITC will acquire a 100% stake in Prasuma over a period of three years.
The acquisition will see ITC acquiring the first tranche of a 43.8% stake in Prasuma upfront, with the balance stake to be acquired in tranches by June 2028. This strategic move is expected to bolster ITC’s presence in the ready-to-cook food segment, which has been growing rapidly in recent years.
Prasuma is a well-established brand in the ready-to-cook food market, with a strong presence in the online and offline channels. The company’s product portfolio includes a range of frozen, chilled and ready-to-cook foods that cater to the growing demand for convenient and healthy meal options.
The acquisition of Prasuma is part of ITC’s strategy to expand its presence in the food segment, which is a key area of focus for the company. ITC has been diversifying its business portfolio in recent years, and the acquisition of Prasuma is expected to add significant value to its food business.
“The acquisition of Prasuma is a significant strategic move for ITC, as it will enable us to expand our presence in the ready-to-cook food market,” said Sanjiv Puri, Chairman, ITC Limited. “Prasuma is a well-established brand with a strong presence in the market, and we believe that our acquisition will create significant value for our shareholders.”
Prasuma’s product portfolio includes a range of products that cater to the growing demand for convenient and healthy meal options. The company’s products are known for their quality, taste and convenience, and are widely available in the online and offline channels.
ITC’s acquisition of Prasuma is expected to create significant value for both companies. Prasuma will benefit from ITC’s strong distribution network and marketing capabilities, while ITC will benefit from Prasuma’s expertise in the ready-to-cook food segment.
The acquisition is also expected to create employment opportunities for Prasuma’s employees, who will be absorbed into ITC’s workforce. This will ensure continuity and stability for Prasuma’s employees, and will also enable ITC to tap into Prasuma’s expertise and talent pool.
The deal is subject to regulatory approvals and is expected to be completed by June 2028. The acquisition is expected to be funded through a combination of internal accruals and debt financing.
In conclusion, the acquisition of Prasuma by ITC is a significant strategic move that is expected to strengthen ITC’s presence in the ready-to-cook food market. The deal is expected to create significant value for both companies, and will also create employment opportunities for Prasuma’s employees.
