**ITC Ltd Acquires Prasuma to Strengthen Frozen and Ready-to-Cook Foods Portfolio**
New Delhi: ITC Ltd has finalized agreements to acquire the frozen food and ready-to-cook brand Prasuma. This acquisition aims to enhance the company’s footprint in high-growth categories, which currently boast an annual market size exceeding ₹10,000 crore and are expected to experience rapid expansion in the coming years. According to a filing with the stock exchanges, ITC will acquire a 100% stake in the Gurugram-based Prasuma over a three-year period.
The initial acquisition will involve a 43.8% stake, with an upfront investment of ₹131 crore through primary subscriptions and secondary purchases, anticipated to close by March 2025, pending the fulfillment of closing conditions. The remaining stake will be acquired in tranches by June 2028, based on pre-defined valuation criteria and other conditions outlined in the agreements.
By April 2027, ITC’s ownership in Prasuma is expected to rise to 62.5% through secondary purchases amounting to ₹56 crore, based on a pre-agreed pre-money valuation. The remaining 37.5% equity stake will be acquired over the next three years, following pre-agreed valuation criteria.
Prasuma’s leadership team, including CEO Lisa Suwal and COO Siddhant Wangdi, will continue to manage all business operations during the three-year transition period, with ITC represented on the Board.
Prasuma operates under the brands ‘Prasuma’, ‘Meatigo by Prasuma’, and ‘Prasuma Momo Kitchen’. Its flagship product, ‘Prasuma Momos’, was launched in 2019. With a presence in over 100 cities through both online and offline channels, Prasuma has achieved an annual revenue run-rate of approximately ₹200 crore. ITC’s extensive food portfolio includes noodles, chips, spices, dairy, and frozen foods, having entered the frozen foods market in 2019 with the ‘ITC Master Chef’ brand, available in 200 towns.
The company stated, “With the industry at an inflection point, this acquisition will bolster ITC’s presence in these categories by tapping into high-growth segments such as pan-Asian foods and deli meats.” ITC aims to become the first full-stack player in this segment, offering a diverse portfolio of meals and snacks for discerning consumers throughout the day. The integration of ITC Master Chef and Prasuma is expected to yield significant synergies through well-designed institutional mechanisms.
ITC has been actively pursuing acquisitions post-pandemic to adapt to changing consumer preferences. In 2023, the company also invested in Sproutlife Foods Pvt. Ltd (SFPL).
