InvestorQ : How will the acquisition of Sunrise Foods help ITC?
Riya Dwivedi made post

How will the acquisition of Sunrise Foods help ITC?

rhea Babu answered.
1 year ago

ITC announced the acquisition of Sunrise Food, a major manufacturer of spices. The consideration of Rs.2150 crore was part of an all-cash deal. The shares were acquired on a cash-free and debt-free basis. In addition, the sellers will be entitled to contingent payment of up to Rs.150 crore on achieving mutually agreed financial milestones over next 2 years.

Sunrise Foods is based out of Kolkata and is primarily engaged in the business of spices. This acquisition will assist ITC to enhance its portfolio in the foods segment where ITC has a basic presence in the form of Aashirwad Atta. Post the acquisition, Sunrise Foods and its two subsidiaries, Sunrise Sheetgrah and Hobbits International become 100% subsidiaries of ITC.

Sunrise is a market leader in eastern India with a brand history of over 70 years. ITC Aashirvaad brand of spices has strong presence in Telangana and Andhra Pradesh and ITC is one of India's leading producers and exporters of high-quality food-safe spices. This deal will help ITC to significantly scale up its spices business across India. In FY20, Sunrise had total turnover of Rs 592 crore.