ITC has entered into a Share Purchase Agreement (SPA) on 23 May 2020 to acquire 100% of the equity share capital of Sunrise Foods (SFPL), a company primarily engaged in the business of spices under the trademark ‘Sunrise’, subject to fulfillment of various terms and conditions as specified in the SPA.
Sunrise is a clear market leader in eastern India in the fast-growing spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise. It is anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments.
The proposed acquisition is aligned with ITC’s strategy to scale up its FMCG businesses in a profitable manner rapidly. In addition, it is leveraging its institutional strengths such as deep consumer insight, a deep and extensive distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages, and packaging know-how.
ITC’s Aashirvaad range of spices is already a market leader in Telangana, and Andhra Pradesh and the company is one of India’s leading producers and exporters of high-quality food-safe spices.
The proposed acquisition will augment the company’s product portfolio and align it with ITC’s aspiration to significantly scale up its spice business and expand its footprint across the country. The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company’s agribusiness and its pan-India distribution network, will provide significant value creation opportunities for the company.
The proposed transaction is also in line with ITC’s philosophy of enhancing the competitiveness of Agri value chains in India while making a meaningful contribution to strengthening farmer incomes.
Finalization of the SPA and related processes were completed during lockdown conditions, reflecting the company’s agility and resilience in dealing with the new normal.