ITC is set to acquire a 43.81 per cent stake for ₹131 crore in Prasuma, a notable player in the ready-to-cook, chilled and frozen food space with a focus on oriental cuisine, as it deepens its presence in the fast-growing frozen food space with current market size of ₹10,000 crore.

The company plans to progressively acquire 100 per cent of Prasuma by June 2028, basis pre-defined valuation criteria and subject to other conditions stated in the definitive agreements.

Prasuma operates through ‘Prasuma’, ‘Meatigo by Prasuma’ and ‘Prasuma Momo Kitchen’ brands and has a turnover run-rate of ₹200 crore. It has developed several first-to-market frozen products like baos, Korean fried chicken, Schezwan momo meal and Japanese fried rice.

Meatigo offers consumers access to delicatessens and raw meats through its own D2C platform, while Prasuma Momo Kitchen offers pan-Asian offerings through 40 cloud kitchens, ITC said in a statement.

ITC entered the frozen food segment with ‘ITC Master Chef’ brand, offering frozen western and Indian snacks and Indian breads. With this acquisition, ITC will be able to enter the pan-Asian and deli meat segment.

The Prasuma team, including Lisa Suwal, CEO and Siddhant Wangdi, COO, will continue to operate all functions of the business during the 3 year period, while ITC will be represented on the board.

Profit declines

ITC Ltd on Thursday reported a 7.27 per cent decline in consolidated net profit at ₹5,013.16 crore for the December quarter on account of subdued demand and sharp escalation in input costs. The company had posted a consolidated net profit of ₹5,406.52 crore in the year-ago period.

ITC’s revenue from operations was up 9.05 per cent to ₹20,349.96 crore in the December quarter.