India’s leading FMCG company, ITC has acquired Sunrise Food Private Limited for an unrevealed amount. ITC wanted to expand its business to spice sector as well. Hence, it acquired 100% shares of Sunrise Food Private Limited.
This city based spices producing brand is about 70 years old well established brand. ITC wanted to enter into spices sector and found it reasonable to acquire a brand already known instead of starting one from scratch.
The 70 years old brand hailed from eastern India and was the leading producer of Indian spices with the trademark “Sunrise.” They have been producing packaged spices in both basic and blended segments.
The company stated in the press release, “The proposed acquisition will augment the product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country.”
ITC already has “Aashirvaad” as its spices brand which is also a market leader in Andhra Pradesh and Telangana and also the major exporter.
“This is a positive development for ITC as among its diversified portfolio, we are most excited by ITC’s foods business because of synergy with its agri business and strong understanding of Consumer taste due to its Hotel business. Branded Spices is an exciting and high growth segment as Consumer shifts from unbranded to branded due to higher focus on safety, trust and quality,” Abneesh Roy, Senior VP – Institutional Equities Research, Edelweiss Securitied, said.
The agreement of aquisition is subjected to terms and conditions too.