ITC Limited has made a strategic move to enhance its footprint in the frozen foods market.  The company is partnering with Prasuma, a leading brand in the frozen and ready-to-cook food sector in India.

This acquisition, which involves an investment of ₹187 crore, will see ITC acquiring a 62.5% stake in Prasuma by April 2027, with the remaining 37.5% stake's valuation to be determined later. The acquisition will take place in multiple stages over three years, marking a significant step for ITC in the ₹10,000 crore frozen foods sector.

Prasuma's Market Presence

Prasuma is renowned for its premium offerings, including frozen momos, baos, Korean fried chicken, and deli meats under the 'Meatigo' brand. The company has online and offline retail channels in over 100 cities. Also it plans to expand into the cloud kitchen category with its “Prasuma Momo Kitchen” outlets.

With an annual revenue run rate of approximately ₹200 crore and a consolidated turnover of ₹131 crore for FY24, Prasuma has positioned itself as a key player in the industry.

Strategic Vision

Hemant Malik, ITC's Wholetime Director, states the company's intentions clearly: they want to expand their portfolio in the frozen, chilled, and ready-to-cook food segments. Partnering with Atria, a small U.S. food company, is a beginning for ITC—a way to set things in motion toward not just exporting more food to the U.S. but also exporting products that meet a standard of quality that Americans are used to. Because overall, that's what ITC's plans come down to: penetrating high-growth consumer markets and doing so with products that are as innovative as they are tasty.

Prasuma's future growth stands to gain from this acquisition; collaborating with ITC will surely enhance their penetration in the diverse Indian market, and the resources provided by ITC should make for a smooth path of expansion for the Prasuma brand. This partnership promises to deliver even greater value to customers and stakeholders in both health and taste.

This sentiment is reinforced by Siddhant Wangdi, co-founder of Prasuma, who describes the collaboration with ITC as an advanced, future-focused partnership principally about delivering health and other benefits within the frozen food category. Overall, the collaboration between Prasuma and ITC seems very well-positioned to leverage ITC's many strengths in order to foster growth and innovation in the food industry.

ITC's Expansion Strategy

ITC entered the frozen foods segment in 2019 with its 'ITC Master Chef' brand, which offers a variety of frozen Indian and Western snacks. The acquisition of Prasuma is expected to synergize with ITC Master Chef’s offerings, allowing the company to become a comprehensive player in the growing frozen foods market.