MTR & Eastern owner Orkla readying Rs 700 crore to acquire new brands, says MD-CEO Sanjay Sharma

Bengaluru: Orkla India Ltd, which owns southern packaged foods maker MTR and Eastern, has drawn up an aggressive strategy to grow its business in India both organically and through acquisitions. The company is actively looking for packaged food brands in the northern and western India markets to acquire, said Sanjay Sharma, Managing Director & CEO of Orkla India Ltd.

"We are a debt-free and cash-rich company. We currently have a cash reserve of Rs 350 crore and every year, we are generating between Rs 300 crore and Rs 400 crore cash every year. We will have a cash reserve of Rs 700 crore by the end of FY26. All of this cash will be used for acquisition. Additionally, we also have an option to raise debt if required," Sharma told DH.

The company has so far made two acquisitions in Karnataka and Kerala. It acquired Bengaluru-based MTR Foods in 2007 and Kerala-based Eastern Condiments in 2021 and has grown both the brands. It has a strong base in southern states and is now eyeing acquisition of popular brands in other parts of the country, mainly north and western India, he said.

"I love all brands in India. Every state in India has one or two popular brands. I am looking for partnerships with such brands across the country," Sharma said.

Orkla aims to penetrate deeper into southern markets with its two brands - MTR and Eastern and expand through new brands in other brands. "We have had a presence all across the country for many years. But we want to increase our market share for MTR and Eastern in southern states," he said.

Sharma said the company is planning to roll out a stock option programme for some of its employees. Currently, it pays a cash incentive to them.

Orkla's Rs 1,667 crore IPO opened for subscription yesterday and by this morning it was fully subscribed with the employee portion oversubscribed by 5.3 times. The issue closes on Friday.

This launch follows a successful anchor investment round. The company raised Rs 500 crore from marquee investors like Nippon Life India, Aditya Birla Sun Life AMC, Ashoka WhiteOak, Nomura Funds, Government Pension Fund Global, Jupiter Global Fund, Pinebridge Global Funds, among others.

Orkla India has a strong global footprint, with exports to 45 countries. In Fiscal 2025, revenues from customers outside India contributed 20.6% (Rs 486.17 crore) of the total revenue from the sale of products. According to the Technopak Report, Orkla India held an approximately 22.2% market share in the Indian branded spices exports segment in fiscal 2024. Furthermore, the Eastern brand has maintained its position as India’s largest exporter of branded spices for 24 consecutive years.

MTR and Eastern are the most widely distributed brands in Karnataka and Kerala for spices, with a presence in 67.5% and 70.4% of relevant outlets, respectively, far exceeding the industry average. This network is supported by nine owned manufacturing facilities in India and several contract manufacturers, all holding high-standard quality certifications.