DSM Fresh Foods steps into ready-to-eat market with acquisition of Avyom Foodtech

DSM Fresh Foods Limited, which operates the ZappFresh brand and is listed on the BSE SME platform, has approved the acquisition of a 51-60% controlling stake in Avyom Foodtech Private Limited, marking its formal entry into the ready-to-eat (RTE) and ready-to-cook (RTC) food segments and a push into overseas export markets.

The acquisition will be executed through a cash infusion of around Rs 7.5 crore by DSM Fresh Foods Limited via a private placement of shares in Avyom Foodtech, resulting in at least 51% equity stake.

The company said the transaction is expected to be completed over the next three to nine months.

DSM Fresh Foods may also explore the induction of external strategic investors at the Avyom level through the issuance of fresh shares, subject to board approval, to support long-term growth and capital alignment.

As part of the broader transaction structure, Avyom Foodtech has entered into a binding term sheet to acquire the operating food processing business of Ambrozia Frozen Foods through a slump sale on a going-concern basis.

The acquisition includes around five acres of land, a fully operational food processing facility, and associated plant and machinery, along with the assumption of identified liabilities such as bank borrowings and trade payables. Funds will be deployed in phases in line with the Business Transfer Agreement to ensure capital discipline and a calibrated operational ramp-up.

The move gives DSM Fresh Foods immediate access to an established processed foods platform with FSSAI-approved manufacturing processes and export-ready infrastructure.

The Ambrozia facility has a processing capacity of around 15 tonnes per day and supports a portfolio of more than 150 SKUs. These include breakfast products such as idli, medu vada and dosa fillings; snacks such as kebabs, momos, rolls, samosas and burger patties; Indian fritters including pakoda and onion bhaji; as well as gravies, breads and sauces.

Ambrozia serves a mix of institutional and quick service restaurant customers, including Hyperpure, Faasos, Jubilant, Demand Planner and Al Kabeer, and has an established export footprint in Canada, the United Kingdom and the UAE.

While the business reported a turnover of around Rs 13 crore in FY25, it has historically achieved peak annual revenues of approximately Rs 16 crore, indicating the scalability of its processing infrastructure.

DSM Fresh Foods said the acquisition allows it to enter the high-growth processed foods segment without the timelines and capital intensity of a greenfield expansion. The company expects the move to complement its existing strengths in sourcing, quality control, cold-chain logistics and distribution, while improving unit economics through value-added products.

Commenting on the development, Deepanshu Manchanda, managing director of DSM Fresh Foods Limited, said the acquisition represents a strategic inflection point for the company.

“This acquisition represents a strategic inflection point in DSM’s evolution from a fresh foods platform to an integrated, end-to-end food solutions company. By acquiring a running processed foods business with established capabilities, regulatory approvals, and export readiness, we are significantly shortening our execution timeline while maintaining capital discipline,” he said.

Avyom Foodtech Private Limited, formerly IEY Education Private Limited, was incorporated in 2022 and is engaged in the manufacturing, processing and export of ready-to-eat and ready-to-cook products, including frozen foods, snacks, gravies and sauces. The company was promoted by directors of DSM Fresh Foods.

The acquisition also builds on DSM Fresh Foods’ track record of inorganic expansion. Operating under the ZappFresh brand, the New Delhi-headquartered company focuses on sourcing, processing and delivering meat and food products to both consumers and institutional customers. In the first half of FY26, DSM Fresh Foods reported a net profit of Rs 7 crore, nearly three times higher than the Rs 2.4 crore reported a year earlier, while operating revenue rose 43% year-on-year to Rs 95.6 crore.

The company said the expansion into processed foods and exports is expected to diversify revenue streams and strengthen its position across the food value chain.