Shares of ITC Ltd are drawing renewed investor attention this week after the company completed its ₹131 crore acquisition of a 43.8% stake in Ample Foods Pvt Ltd, the brand behind the popular frozen food label Prasuma. This marks a major move for ITC as it continues to expand its footprint in India’s fast-growing frozen and ready-to-cook foods market.
Ample Foods, best known for its momos, baos, and deli meats, has carved out a strong presence in both offline retail and quick-commerce platforms. With a turnover of ₹131 crore in FY 2023-24, the company has emerged as a key player in the premium convenience food space.
This acquisition is part of a phased investment strategy by ITC. After the initial 43.8% stake, the company plans to raise its ownership to 62.5% by April 2027, with an additional ₹56 crore infusion. The final phase will see ITC acquiring the remaining 37.5% stake, along with Meat and Spice Pvt Ltd (a contract manufacturing partner), by June 2028.
Hemant Malik, Wholetime Director at ITC, said, “We are delighted to back Prasuma and jointly build an unparalleled, full-stack frozen, chilled, and ready-to-cook foods portfolio.” The move also complements ITC’s existing frozen brand, ITC Master Chef, giving the company a more robust offering in the category.
The Estimation
Industry experts estimate the frozen and chilled ready-to-eat market in India to be worth over ₹10,000 crore, with double-digit growth expected over the next few years. ITC’s deeper play into this space, especially with a strong consumer-facing brand like Prasuma, is seen as a strategic bet to boost its FMCG revenues.
ITC is also exploring cloud kitchen formats under the brand name Prasuma Momo Kitchen, aiming to tap into the booming food delivery market. Analysts believe this multi-pronged strategy will not only diversify ITC’s product portfolio but also give it a stronger edge against domestic and international competitors.
Following the acquisition news, ITC’s stock has been under the spotlight, with market watchers optimistic about long-term gains. The diversification into high-growth food categories is expected to boost shareholder confidence and drive future earnings.
