MTR Foods owner Orkla India explores IPO, eyes 2025 decision
IPO) for its Indian unit, which owns spices and condiments brands MTR and Eastern.
«We initiated a process to consider structural opportunities for Orkla India, including conducting an IPO readiness study. The results of the study are encouraging. And we will now proceed with an evaluation of accessing the capital markets in India. Any conclusion should not be expected until sometime 2025,» Nils Selte, president and CEO at Orkla, told investors. «There are a lot of things to do before we are good to go.»
With sales of ₹2,300 crore last calendar year, MTR gets about 70% of its revenues from spices and masalas. Last year, the company restructured its Indian operations under one business entity, Orkla India, with three business units-MTR, Eastern and international business (IB)-in an attempt to leverage their combined business capabilities and drive sharper growth. Orkla entered India in 2007 by acquiring MTR Foods and nearly four years ago, it bought a majority stake in Kerala-based spice maker Eastern Condiments.
While the spices market is over ₹90,000 crore, just a third of it is branded. Within the organised spices category, the Everest brand is the market leader, followed by MDH. Also, in masala, herbs and spices, domestic players including MTR, DS Foods, Ramdev and Eastern retain the upper hand in select geographies. However, other FMCG players are also strengthening their presence in the spices and ready-to-cook categories.
India's food preference is similar to some of the European countries but the market
