ITC to acquire 100 per cent equity share capital of Sunrise Foods
ITC Limited has entered into a share purchase agreement (SPA) on May 23, 2020 to acquire 100 per cent of the equity share capital of Sunrise Foods Private Limited (SFPL).
SFPL is engaged in the business of spices under the trademark ‘Sunrise’. The agreement is subject to fulfilment of various terms and conditions as specified in the SPA. Sunrise is a market leader in eastern India in the fast-growing spices category with operations of over 70 years.
The proposed acquisition will aid ITC to rapidly scale-up its FMCG businesses in a profitable manner. ITC’s Aashirvaad range of spices is already a market leader in the states of Telangana and Andhra Pradesh. Besides, the company is also one of India's leading producers and exporters of high-quality food safe spices.
For Q3FY20, cigarettes remained major contributor with nearly 44 per cent of revenue contribution. Agri commodities such as soya, spices, coffee and leaf tobacco contributed nearly 17.5 per cent. FMCG other than cigarettes, which includes a wide range of businesses such as branded packaged foods business (staples & meals, snacks, dairy and beverages, biscuits and cakes, chocolates, coffee and confectionery) apparel, education and stationery products, personal care products, safety matches and agarbattis together contributed nearly 28 per cent. ITC has been trying to reduce its dependence on cigarettes since long. Such transactions help it in getting closer to achieving that.
The stock closed at 186.35, down by 1.35 per cent or Rs 2.55 per share. The intraday high is Rs 191.80 and intraday low is Rs 184.75