ZappFresh parent DSM Fresh Foods shares soar 10% as it acquires Ambrozia, enters processed foods space
ADVERTISEMENT
Shares of DSM Fresh Foods rallied nearly 10% on Friday after the company announced its strategic entry into the fast-growing ready-to-eat (RTE) and ready-to-cook (RTC) foods segment through the acquisition of Ambrozia Frozen Food’s food processing operations. The company, which operates under the brand Zappfresh, is an online retailer of fresh meat, seafood, and other non-vegetarian products.
Boosted by the development, DSM Fresh Foods shares jumped as much as 9.7% to ₹128.50 on the BSE. At the time of reporting, the stock was up 5.47% at ₹123.50, with a market capitalisation of ₹273 crore.
The stock gained momentum after DSM Fresh Foods disclosed that its subsidiary, Avyom Foodtech, had executed a binding business transfer agreement (BTA) with Ambrozia Frozen Food Partnership Firm to acquire its food processing operations on a slump sale, going-concern basis.
Under the transaction structure, DSM Fresh Foods will acquire a 76% equity stake in Avyom Foodtech through a primary cash infusion of around ₹8 crore, which will be deployed directly into the acquired business. Concurrently, the company’s promoter, Deepanshu Manchanda, will invest about ₹2 crore at the same valuation through a fresh issue of shares, comprising 19% equity, along with an additional 5% sweat equity.
January 2026
Netflix, which has been in India for a decade, has successfully struck a balance between high-class premium content and pricing that attracts a range of customers. Find out how the U.S. streaming giant evolved in India, plus an exclusive interview with CEO Ted Sarandos. Also read about the Best Investments for 2026, and how rising growth and easing inflation will come in handy for finance minister Nirmala Sitharaman as she prepares Budget 2026.
Forays into processed foods space
The acquisition marks DSM Fresh Foods’ foray into the processed foods space, complementing its core technology-enabled fresh foods platform operating under the ZappFresh brand.
“The execution of the Business Transfer Agreement represents a critical milestone in DSM’s transformation into an integrated food solutions platform. The structured and performance-linked framework ensures capital discipline while giving us immediate operational control over a scalable, export-ready processed foods business. This positions us strongly to build a meaningful RTE and RTC vertical over the coming quarters while enhancing long-term shareholder value,” said Deepanshu Manchanda, Managing Director, DSM Fresh Foods.
Ambrozia’s business includes a fully operational manufacturing facility of around 30,000 sq. ft., equipped with four parallel automated and semi-automated production lines and in-house quality control laboratories. The facility supports scalable multi-product manufacturing and serves both domestic and export customers. The acquired business reported revenues of around ₹13 crore in FY25 and is currently operating at an annualised revenue run-rate of about ₹16 crore, indicating scope for further scale-up.
DSM Fresh Foods said the acquisition could help it save 12–18 months compared with setting up a new processing unit, as the business already has regulatory approvals, established customer relationships, and operational infrastructure in place.
As part of the deal, Avyom Foodtech will take over Ambrozia’s land, plant and machinery, inventory, licences, contracts, and associated assets, along with identified liabilities such as bank borrowings and trade payables. The transaction has been structured with staggered consideration milestones, linked to business performance, to ensure capital efficiency and downside protection.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)