ITC to acquire Prasuma, expands presence in frozen and ready-to-cook foods

Kolkata-based ITC has signed definitive agreements to acquire Prasuma, a company in India's frozen, chilled and ready-to-cook foods space. 

Prasuma, which specializes in oriental cuisine (viz. momos, baos, Korean fried chicken), delicatessens and raw meats, sells a wide assortment of 170+ products. 

The acquisition will further fortify ITC’s presence in these future-facing categories, with a current annual market size of over Rs 10,000 crore.

Acquiring 100% stake

ITC said it will acquire a 100% stake in Prasuma over three years. The first tranche of the 43.8% stake will be acquired upfront, and the remaining stake will be acquired in tranches by June 2028, based on pre-defined valuation criteria and subject to other conditions, the release notes.

Prasuma's brands

Prasuma operates through ‘Prasuma’, ‘Meatigo by Prasuma’ and ‘Prasuma Momo Kitchen’ brands. The flagship ‘Prasuma Momos’ was launched in 2019.

The company has also developed several first-to-market frozen products, such as Baos, Korean Fried Chicken, Schezwan Momo meal, and Japanese Fried Rice. 

Meatigo, on the other hand, offers consumers access to quality delicatessens and raw meats through its own D2C platform. Prasuma Momo Kitchen offers high-quality Pan Asian products through 40 cloud kitchens. Prasuma, with a presence in 100+ cities across online and offline channels, has scaled up to an Annual Revenue Run rate of about Rs 200 crore.

ITC's market presence in the frozen foods market

ITC entered the Frozen Foods market in 2019 under the ‘ITC Master Chef’ brand. Within five years of its launch, ITC Master Chef has grown rapidly and now offers 50+ easy-to-cook nutritious and tasty frozen Western and Indian snacks and Indian breads. 

The conglomerate claims that ITC Master Chef is present in more than 200 cities and caters to both Retail and Food Service customers.

With the proposed acquisition, ITC will become the first full-stack player in the segment with an unparalleled portfolio, offering meals and snacking options across multiple occasions throughout the day for the discerning consumer.

"We are delighted to back Prasuma and look forward to jointly building an unparalleled, full stack frozen, chilled and ready-to-cook foods portfolio. With Good-for-You, first-to-market products, across cuisines, we believe that the combined portfolio will delight our discerning consumers. This investment reaffirms our commitment to building future-facing, best-in-class, innovative portfolios," said Hemant Malik, Wholetime Director, ITC Limited.