itc

In its most 💪aggressive acquisition till date, the top Indian conglomerate, ITC is to acquire Kolkata-based spice maker, Sunrise Foods.

Although the size of this deal has not been disclosed🤫, it is estimated to be at Rs. 1,500-2,000 crores.

About Sunrise Foods

Sunrise Foods is a family👨‍👩‍👧‍👦 run business which has been operating for over 100 years.

The company had a turnover of Rs. 600 crores💰 in the last fiscal.

Around 85% of the company’s sales come from Bengal.

A well-justified move

Although ITC already sells spices🌿 under its Aashirvaad brand in some southern states, acquiring Sunrise Foods will help it expand↔️ this business across the country.

Notably, only a fraction of the Indian spice market is branded and apart from ‘Everest’ brand, there is no player🤷🏻‍♂️ which has a significant nation-wide presence.

ITC is also hoping to benefit🤑 from the the shift of consumers’ preference, from unbranded spices towards branded ones.

Moving beyond Tobacco

For the past few years, ITC has been ☝️keen to expand beyond its core tobacco business.

Although this segment still earns the company🏢 most of its revenues and profits, ITC has been focussing hard on its FMCG business.

This segment, which combines food🥘 and health along with personal care items🧴, brought ITC a revenue of over Rs. 12,500 crores in 2018-19🗓️.

The company now owns😎 some of the most famous food brands in India such as Aashirvaad Atta, Sunfeast biscuits, Bingo chips, Yippee noodles etc.

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