ITC, a diversified conglomerate which has business interests from tobacco to hospitality, has entered into a share purchase agreement (SPA) on May 23, 2020 to acquire 100 per cent of equity share capital of Sunrise Foods (SFPL) for an undisclosed amount.
SFPL is primarily engaged in the business of spices under the trademark ‘Sunrise’.
In a regulatory filing, the Kolkata-based company on Sunday said the proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how.
The Kolkata-based Sunrise is a market leader in eastern India in the fast-growing spices category with a brand legacy of over 70 years.
ITC’s Aashirvaad range of spices is already a market leader in Telangana and Andhra Pradesh and the Company is one of India’s leading producers and exporters of high-quality food safe spices.
The company said that the proposed acquisition will augment the company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country.
“The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the Company’s Agri Business and its pan-India distribution network, will provide significant value creation opportunities for the company,” ITC’s statement said.
Finalisation of the SPA along with related processes were completed during lockdown conditions, reflecting the company’s agility and resilience in dealing with the new normal, ITC added.