Shares in ITC rallied, after the company said that it has entered into a Share Purchase Agreement (SPA) to acquire 100% of the equity share capital of Sunrise Foods Private Limited (SFPL), a company primarily engaged in the business of spices under the trademark 'Sunrise'.
"Sunrise is a clear market leader in eastern India in the fast-growing Spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments.
The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG Businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how. ITC's Aashirvaad range of spices is already a market leader in Telangana and Andhra Pradesh and the Company is one of India's leading producers and exporters of high-quality food safe spices," the company said in a release.
The proposed acquisition the Company's believes will augment its product portfolio and is aligned to its aspiration to significantly scale up its Spices business and expand its footprint across the country.
"The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the Company's Agri Business and its pan-India distribution network, will provide significant value creation opportunities for the Company," it stated.