MTR Foods' Parent Orkla India Eyes IPO By 2025: Report

MTR Foods' owner, Orkla India is expected to embark on an Initial Public Offering (IPO) by next year, even before finalising its business restructuring, according to media reports.

Orkla ASA entered the Indian market in 2007 by acquiring MTR, a company known for its packaged food products such as spices, pickles, and ready-to-cook items like idli and poha. In 2011, Orkla India expanded its portfolio by purchasing Rasoi Magic, a wholly-owned subsidiary of MTR.

In 2020, the company acquired a majority stake in Eastern Condiment, a spice manufacturer based in Kerala. Orkla India currently operates through three business units - MTR, Eastern and international operations.

At the World Food India 2024 held last week in New Delhi, Orkla India CEO Sanjay Sharma shared that the company conducted a pre-IPO study, which was presented to the board. They are currently evaluating the potential of entering the capital markets. This process is in its early stages, with any developments expected to occur around 2025. Additionally, Sharma mentioned plans to integrate the company's businesses within the next 12 months.

From an HR standpoint, Orkla India is working on establishing a unified process across the organisation. In manufacturing, with 11 factories, each currently operates with its own processes. The company is focusing on streamlining these operations, and this integration will take at least another year to complete.

Regarding the spice industry, Sharma noted that despite food inflation in India, there has been deflation in the spice sector, leading to a decrease in raw material prices. As a result, the company has rolled back prices on certain products.