ITC acquires 43.8% stake in frozen foods firm Prasuma, plans full takeover by 2027

In a strategic move to expand its food portfolio, ITC Ltd. has announced the acquisition of a 43.8% equity stake in Prasuma, a family-run brand known for its frozen food products, for an initial investment of approximately ₹131 crore. The deal is expected to close by March 2025.

The acquisition is part of ITC’s broader strategy to increase its stake in Prasuma over the next few years. By April 2027, ITC’s stake in the company is set to rise to 62.5% through secondary purchases worth ₹56 crore. These purchases will be made based on a pre-agreed pre-money valuation, marking a gradual shift towards a majority stake.

The remaining 37.5% equity stake is expected to be acquired over the next three years, again based on a pre-determined valuation framework, the statement from the company noted.

Founded in 1985 by Mahendra Suwal, Prasuma has carved a niche in the Indian market with its premium frozen products, including momos, pork, bacon, sausages, kebabs, and meat rolls. Known for pioneering the frozen momo category, Prasuma’s products are now available in over 40 markets across the country, cementing its position as a leader in the frozen food space.

The acquisition deal includes a unique arrangement where Prasuma’s current leadership, including CEO Lisa Suwal and COO Siddhant Wangdi, will continue to manage the company’s operations for the next three years. Lisa Suwal, who was promoted from Chief Growth Officer to CEO in 2022, will continue to steer the company’s topline, bottomline, and overall strategy.

ITC will also have representation on Prasuma’s Board following the acquisition. This partnership is expected to strengthen ITC’s presence in the growing frozen food segment, particularly as consumer preferences continue to shift towards convenience and premium food products.

As per the statement, with this strategic acquisition, ITC aims to leverage Prasuma’s strong brand presence and expertise in the frozen food category, thereby dominating the category in the Indian market.