ITC doubles down on frozen foods business; plans to acquire Prasuma for Rs 300 crore.

ITC, a diversified conglomerate, is expanding its presence in the rapidly growing frozen foods market. The company has taken the inorganic route to scale its business by acquiring popular frozen foods maker Prasuma for approximately Rs 300 crore. The deal is expected to be completed over three years, with ITC picking up a 43.8% stake by March 2025.

According to Hemant Malik, Wholetime Director, ITC, the acquisition will help the company build a full stack of frozen and ready-to-cook foods portfolio. The move aligns with ITC's "ITC Next" strategy, which focuses on building a future-ready portfolio of products that serves evolving consumer needs.

ITC already has a wide range of frozen foods portfolio under its ITC Master Chef brand, comprising over 50 RTC items, frozen snacks, and Indian breads with a reach of over 200 towns. The acquisition of Prasuma will strengthen ITC's presence in the segment by gaining entry into high-growth segments such as Pan Asian foods and Deli meats.

The combined portfolio of ITC Master Chef and Prasuma will offer meals and snacking options across multiple occasions throughout the day for discerning consumers. The company expects significant synergies through well-designed institutional mechanisms and enablers.

The frozen foods market is increasingly gaining traction among urban consumers, with a market size of approximately Rs 10,000 crore. ITC's move to acquire Prasuma is a strategic step to tap into this growing market and strengthen its presence in the segment.