Post by : Saif Rahman

Orkla India, the parent company of well-known brands MTR and Eastern spices, is embarking on a strategy that includes acquisitions while emphasizing quick meal options and fast delivery services to fuel its growth trajectory. As stated by CEO Sanjay Sharma, the company aims for double-digit revenue growth in the forthcoming years.

The consumer goods and retail landscape in India has witnessed a surge in deal-making, reaching a four-year peak from January through September this year. The food and beverage segment is at the forefront, exemplified by notable transactions such as Tilaknagar Industries’ $486 million acquisition of the Imperial Blue whisky brand and Singapore’s Wilmar International taking an $832 million share in AWL Agri Business.

Sanjay Sharma noted that Orkla India is eager to pursue mergers and acquisitions that resonate with local culture and culinary traditions. The company is open to deals ranging from 1 billion to 2 billion rupees ($11–22 million) and beyond. Sharma assured that Orkla India has sufficient liquidity and can secure additional funds if necessary to support future acquisitions.

After merging MTR and Eastern in 2023 under the aegis of its Norwegian parent, Orkla, the company is optimistic about returning to its historical growth trajectory of double-digit revenues by fiscal 2026 and onwards. This was the growth rate achieved in fiscal 2023.

Sharma emphasized the increasing demand for convenience foods and the significance of online sales channels. Sales from digital platforms soared by 47% in the preceding financial year, boosting their contribution to Orkla India’s domestic sales from 5.1% to 7.5%. Rapid delivery services like Blinkit, Zepto, and Swiggy Instamart have been instrumental in ensuring that consumers in metropolitan areas receive staple items within minutes.

The convenience foods division, which offers ready-to-cook breakfast kits and vermicelli, now represents 33.4% of Orkla India’s revenue, compared to 31.5% the prior year. Meanwhile, the spices sector continues to hold its proportional share.

Sanjay Sharma also indicated that rising incomes and lifestyles among younger consumers and dual-income households will likely benefit the growth of the convenience foods sector more than traditional spices. The company is optimistic that these trends, alongside prudent acquisitions and robust e-commerce advancements, will enable it to maintain a competitive edge in India’s burgeoning food market.

Orkla India’s emphasis on mergers, convenience foods, and digital sales strategies encapsulates the evolving preferences and shopping behaviors of Indian consumers. By investing in new ventures and harnessing technology, the company aspires to fortify its market position and expand its footprint in the region.

#Global News