ITC Limited announced the acquisition of a 43.75% stake in Ample Foods Private Limited (AFPL), a company focused on frozen, chilled, and ready-to-cook food products. The transaction, valued at approximately ₹131 crores, involved the purchase of 2,62,500 equity shares at ₹10 each through primary subscription and secondary purchases.
ITC confirmed in a letter to the National Stock Exchange of India Ltd., BSE Ltd., and The Calcutta Stock Exchange Ltd. that the acquisition was completed on April 4, 2025, following agreements signed on February 6, 2025. The company acquired 1,00,000 equity shares via primary subscription and 1,62,500 shares through secondary purchases, with confirmation from AFPL received at 6:00 p.m. today. R. K. Singhi, Executive Vice President & Company Secretary of ITC Limited, stated that the deal was cash-based.
Expansion in the Food Sector
AFPL, incorporated on December 17, 1993, operates in India’s frozen, chilled, and ready-to-cook foods market, currently valued at over ₹10,000 crores. The company produces ready-to-cook snacks and meals, sauces, condiments, raw and deli meats, marinades, cheese, and frozen foods under the brands Prasuma and Meatigo, sold through online platforms, offline retail channels, and direct-to-consumer sales.
ITC described the acquisition as part of its plan to expand its portfolio and increase its presence in the frozen, chilled, and ready-to-cook foods industry, as detailed in its regulatory disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial and Operational Details
AFPL’s consolidated turnover for the last three years was ₹116 crores in FY 2023-24, ₹98 crores in FY 2022-23, and ₹74 crores in FY 2021-22. The “Target Business,” which includes AFPL, Chao Chao Foods Private Limited, and Meat and Spice Private Limited (MSPL), reported a consolidated turnover of ₹131 crores in FY 2023-24, ₹111 crores in FY 2022-23, and ₹91 crores in FY 2021-22. MSPL, incorporated on December 15, 2015, deals in raw meats, premium cuts, marinades, and cheese, with a turnover of ₹42 crores in FY 2023-24.
Post-FY 2023-24, MSPL’s operations were integrated into AFPL after an internal restructuring. Both entities operate in India, targeting the market for convenient food products.
No Related Party Transaction
ITC noted that the acquisition is not a related party transaction, and neither ITC nor its promoter group or group companies had any prior interest in AFPL. No governmental or regulatory approvals were required, enabling the deal’s completion.
Addition to ITC’s FMCG Portfolio
ITC, with operations in FMCG, paperboards and packaging, agri-business, and information technology, has added AFPL to its fast-moving consumer goods segment. The acquisition aligns with ITC’s focus on the food industry and consumer demand for convenience products.
This move reflects ITC’s ongoing efforts to expand its business in India’s food sector.