MTR-owner Orkla India eyes next growth phase through convenience foods, quick commerce and expansion beyond the South

Nearly a year after its stock market debut, Orkla India, the company behind MTR, Eastern and Rasoi Magic, is entering its next phase of growth. Having completed the integration of Eastern Condiments, the company is now focused on delivering consistent double-digit growth by expanding beyond its southern stronghold, strengthening digital commerce, and capitalising on changing consumer preferences.

In an exclusive interview with Fortune India, Sanjay Sharma, Managing Director & CEO of Orkla India, said the company's immediate priority is to execute the growth strategy outlined during its IPO and build multiple long-term growth engines.

"We acquired MTR in 2007 and Eastern in 2021, which doubled the scale of our business. Listing the company in November 2025 was the natural next step. Now we have to prove the business model we presented to investors and prepare for the next phase of growth," Sharma said.

Three-pronged growth strategy

Orkla is pursuing three strategic priorities: strengthening its leadership in core southern markets, building digital commerce and organisational capabilities, and expanding select regional food brands across India.

While food preferences remain deeply regional, Sharma believes migration, urbanisation and the growing willingness of younger consumers to experiment with cuisines are creating opportunities for brands like MTR to expand beyond South India.

"Food travels when people migrate. Idli and dosa are no longer confined to South India. Today they are available from Ladakh to Assam. That creates opportunities for brands like MTR to grow nationally," he said.

The company is focusing on convenience-led categories such as breakfast mixes, ready-to-cook meals and South Indian desserts, catering to consumers seeking authentic food with shorter preparation times.

Orkla also sees quick commerce as far more than another retail channel. Sharma believes it is reshaping consumer behaviour and opening new opportunities for premium, convenience-led products.

"Quick commerce is not merely another retail channel. It is creating entirely new business models and enabling consumers to access fresher and more premium products much faster," he said.

To capitalise on this shift, the company has launched Project Bold, an internal initiative to strengthen digital capabilities, improve technology adoption and develop products tailored for online commerce.

Orkla is also expanding its premium portfolio with high-protein breakfast products and MTR Prakriti, a premium spice range sourced from regions known for producing superior-quality spices.

Middle East business remains resilient

Exports, particularly through Eastern Condiments, remain an important growth driver, with the Middle East contributing around 14% of Orkla India's overall business.

Although the conflict in West Asia temporarily disrupted logistics and pushed up freight costs, the company prioritised supply continuity over short-term profitability by rerouting shipments through alternative routes and absorbing part of the additional transportation costs.

Sharma said the integration of Eastern Condiments, acquired in 2021, is largely complete, with only the restructuring of its Kerala distribution network remaining.

"We achieved all the planned synergies and significantly improved profitability while continuing to grow the business," he said.

Demand improving, commodity risks remain

After two years of sharp deflation in spices, commodity prices have turned volatile again due to lower crop acreage and reduced production.

Sharma said Orkla closely tracks sowing patterns, crop conditions and daily commodity prices to manage procurement risks while keeping a close watch on the monsoon.

"A deficient monsoon does not automatically mean weak farm output. Rainfall distribution is equally important," he said.

He added that food inflation—particularly in staples such as onions, tomatoes and potatoes—remains the biggest variable influencing household spending and FMCG demand.

Growth momentum returns

Orkla India returned to double-digit revenue growth after eight quarters in the June quarter of FY27, with revenue from operations rising 10.4% year-on-year to ₹659 crore. Revenue from product sales increased 11.5%, while profit after tax (before exceptional items) rose 9.7% to ₹87 crore.

Sharma said the company has entered FY27 with strong momentum and remains focused on building multiple growth engines through the national expansion of its convenience foods portfolio, stronger digital commerce capabilities, and deeper execution in its core markets.

In its Q1 FY27 earnings, the company said it continued to expand its convenience foods portfolio by strengthening its breakfast range, extending the reach of MTR Minute Fresh Wet Batter to new markets, and launching protein-based breakfast products targeted at younger consumers.

In the spices segment, it introduced regional offerings such as North Karnataka Podis and Andhra Podis, while expanding its premium portfolio with products including MTR Prakriti Hing-e-Kandahar and Eastern Royal Kashmiri Chilli Powder. Internationally, Orkla is preparing to expand into the UK and European markets through a reformulated non-dairy MTR Minute Meals paneer range.