Snack Time: Why ITC Acquired Prasuma

The conglomerate is hoping the niche retail outfit will drive the growth of its frozen meat and seafood business

- Soumya Gupta

For nearly a decade, 32-year-old Amulya Vanga bought chicken, eggs, and the occasional cut of mutton from her local butcher. The Delhi-based social media marketer, who lives with her elderly parents, liked walking to the shop in her neighbourhood market and getting the freshest meat possible.

However, says Vanga, when the family was in the mood for something fancier than desi curries, they had to venture out farther for more specialized meat cuts. They began taking a short drive to Green Chick Chop, a Delhi-based meat retailer and dine-in restaurant, to pick up chicken salami and sausages.

"Once or twice, I tried out Modern Bazaar (a Delhi-NCR-based gourmet supermarket chain) when I wanted to try European deli meats," she added.

Like Vanga, millions of people across India have been making the odd purchase from such modern meat and seafood retailers. In Delhi-NCR, for instance, Green Chick, Modern Bazaar, Freshtohome and Licious are among the meat retailers customers turn to when carnivorous cravings overwhelm them.

But it is another company, Prasuma, that has been in the news of late. Although it has a marginal presence in India's ₹10,000 crore frozen meat and ready-to-cook market, the Gurugram-based company has become a household name in a very niche category: momos.

Prasuma is a frozen snacks business selling pan-Asian snacks, while its subsidiary Meatigo sells frozen meat and is best known for its pork-based cold cuts, including pepperoni and bacon. This month, consumer goods conglomerate ITC Ltd said it was acquiring the two brands in tranches, with an initial investment of approximately ₹131 crore.

The deal size, worth approximately ₹187 crore over two tranches, will take ITC's stake to 62.5% by 2027. That puts Prasuma's valuation just shy of ₹300 crore, a little more than double its FY24 revenue.

A TIMELY DEAL