ITC Negotiates $1.4 Billion Acquisition of MTR Foods and Eastern Condiments

ITC Ltd, a diversified conglomerate, is reportedly in early discussions with Norway’s Orkla ASA to acquire its Indian subsidiaries—MTR Foods Pvt Ltd and Eastern Condiments Pvt Ltd—for approximately $1.4 billion, according to Mint. This potential acquisition aligns with ITC’s strategy to strengthen its foothold in southern India’s food market.

With a diversified portfolio spanning FMCG, hotels, and agribusiness, ITC has been actively expanding in the spices and ready-to-cook food segments. The company previously acquired Sunrise Foods, a spices manufacturer, in 2020 and recently announced the acquisition of Prasuma, a brand specializing in frozen and ready-to-cook foods, in February 2025.

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Orkla ASA and Its Indian Presence

Orkla ASA, a Norwegian industrial investment firm, entered the Indian market by acquiring MTR Foods in 2007 and later expanded by purchasing a majority stake in Eastern Condiments in 2020. In October 2023, Orkla consolidated its Indian operations—MTR, Eastern, and its international business—under Orkla India.

Both MTR Foods and Eastern Condiments have a strong market presence in the ready-to-cook and spices segments, particularly in southern states like Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala. If ITC successfully acquires these brands, it would gain a substantial advantage in these regions.

Although Orkla had previously considered launching an IPO for its Indian business as recently as September 2024, the company is now assessing whether a private sale would offer a better valuation. If negotiations with ITC do not progress favorably, Orkla may opt for an IPO instead, Mint reported.

Indian Spice Market Overview

India’s spice market is projected to grow from Rs 2,00,643.7 crore in 2024 to Rs 5,13,253.9 crore by 2033, reflecting a compound annual growth rate (CAGR) of 10.56%.

If the acquisition materializes, ITC would significantly expand its market presence in southern India’s food sector, strengthening its position against competitors such as Everest and MDH in the spices industry. However, neither ITC nor Orkla has officially confirmed the deal.