ITC signs agreement to acquire Sunrise Foods in India

Indian company ITC has signed a share purchase agreement (SPA) for the acquisition of complete equity share capital of Sunrise Foods.

For more than 70 years, Sunrise Foods has been primarily engaged in the business of spices under the Sunrise trademark.

The company’s products are said to have been tailored to suit regional tastes and preferences, both in the basic and blended spice segments.

The proposed acquisition is in line with ITC’s strategy to increase its presence in the fast-moving consumer goods (FMCG) business category in a profitable manner, using its strengths such as deep consumer insight, wide distribution network and agri-commodity sourcing expertise and packaging knowledge.

ITC currently offers a wide range of spices to its customers in the states of Telangana and Andhra Pradesh.

It is also said to be one of India’s leading producers and exporters of high-quality food-safe spices.

Once completed, the acquisition is expected to enhance ITC’s product portfolio and will be aligned to the company’s aspiration to significantly scale up its spices business and expand its footprint across the country.

ITC in a statement said: “The proposed transaction is also in line with ITC’s philosophy of enhancing the competitiveness of Agri value chains in India whilst making a meaningful contribution to enhancing farmer incomes.”

The company further added that the SPA and other related processes were finalised during the lockdown period, reflecting its agility and resilience in dealing with the new normal.

Financial details of the deal have not been disclosed by either company.