ITC acquires a 43.8% stake in Prasuma for ₹131 crore, with plans for a full takeover by 2027. Learn how this deal will reshape India’s frozen food market
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ITC Strengthens Food Portfolio with Prasuma Acquisition
In a major expansion move, ITC Ltd. has acquired a 43.8% stake in Prasuma, a leading frozen food brand, for approximately ₹131 crore. The deal is expected to close by March 2025, marking ITC’s foray into the premium frozen foods market.
🔹 Long-Term Acquisition Plan:
- ITC will gradually increase its stake to 62.5% by April 2027 through secondary purchases worth ₹56 crore.
- A full 100% acquisition is planned within the next three years.
This strategic investment aligns with ITC’s diversification strategy and its focus on high-growth food categories.
Why ITC is Investing in Prasuma?
Founded in 1985 by Mahendra Suwal, Prasuma has carved a niche in the frozen and processed food industry, offering products such as:
✅ Frozen momos (market leader in India)
✅ Pork, bacon, and sausages
✅ Kebabs and meat rolls
Currently, Prasuma’s products are available in 40+ Indian markets, making it one of the top brands in the frozen food segment. ITC sees immense growth potential in this space, as Indian consumers increasingly prefer ready-to-eat and frozen products.
💡 Market Insights:
📌 India’s frozen food market is projected to grow at 15-20% CAGR over the next five years.
📌 Rising demand for premium convenience foods is driving investments from major FMCG players.
The Deal Structure: ITC’s Phased Takeover of Prasuma
🔹 Phase 1 (2025): ITC acquires 43.8% stake in Prasuma for ₹131 crore.
🔹 Phase 2 (2027): ITC increases stake to 62.5% via secondary purchases worth ₹56 crore.
🔹 Phase 3 (2028-2030): The remaining 37.5% stake will be acquired based on a pre-determined valuation framework, leading to a full acquisition.
What This Means for ITC & Prasuma?
For ITC:
✅ Expands ITC’s frozen food segment, complementing its existing food portfolio (Sunfeast, Bingo, Yippee, etc.).
✅ Strengthens distribution in modern trade and quick-commerce platforms like Blinkit, Swiggy Instamart, and BigBasket.
✅ Enhances ITC’s premium processed food business, a high-margin category.
For Prasuma:
✅ Gains access to ITC’s vast distribution network, expanding reach in Tier 2 & 3 cities.
✅ Leverages ITC’s marketing and brand-building expertise for faster growth.
✅ Retains operational autonomy for three years, with CEO Lisa Suwal and COO Siddhant Wangdi continuing leadership.
“ITC’s investment will help Prasuma accelerate its growth and strengthen its position in the frozen food market,” said Lisa Suwal, CEO of Prasuma.
ITC’s Bigger Bet on Packaged Foods & Convenience Market
This acquisition aligns with ITC’s aggressive push into packaged foods and frozen foods, which has become a key growth area for the company.
Key Trends Driving ITC’s Investment in Frozen Foods
📌 Surging demand for frozen snacks & ready-to-eat meals.
📌 Growth in modern retail & e-commerce boosting accessibility.
📌 Consumers shifting towards convenience foods amid busy lifestyles.
ITC’s strategy is similar to Nestlé, Amul, and McCain, all of whom are heavily investing in frozen and ready-to-eat food categories.
Final Thoughts: A Smart Move for ITC?
✅ ITC’s acquisition of Prasuma is a strategic step to dominate India’s fast-growing frozen food market.
✅ With strong demand for convenience foods, this move enhances ITC’s position in premium processed foods.
✅ The gradual acquisition model ensures smooth integration while allowing Prasuma to maintain leadership in the short term.
🚀 With ITC’s backing, Prasuma is set for massive expansion in the coming years. Will this move help ITC become a dominant player in frozen foods?
💬 What do you think about ITC’s investment in Prasuma? Share your views in the comments!
