Diversified business entity ITC Ltd on Sunday said it will fully acquire spices manufacturer Sunrise Foods Private Ltd (SFPL).

While the company did not disclose the value of the deal, sources said it is valued around Rs 1,800 crore to Rs 2,000 crore.

The company said it has signed a share purchase agreement (SPA) with SFPL which will augment its product portfolio and is also aligned to its aspiration to significantly scale up its spices business and expand its footprint across the country.

"Sunrise is a clear market leader in eastern India in the fast-growing spices category with a rich heritage and brand legacy of over 70 years," ITC said in a statement.

Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments, it added.

"The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG businesses in a profitable manner...," it said.

The deal will "augment the company's product portfolio and is aligned to ITC's aspiration to significantly scale up its spices business and expand its footprint across the country", ITC said.

"The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company's agribusiness and its pan-India distribution network, will provide significant value creation opportunities for the company, " it added.

ITC further said the proposed transaction is also in line with its "philosophy of enhancing the competitiveness of agri value chains in India whilst making a meaningful contribution to enhancing farmer incomes".

"Finalisation of the SPA along with related processes were completed during lockdown conditions, reflecting the company's agility and resilience in dealing with the new normal," ITC said.

According to industry sources, JM Financial was the exclusive advisor to Sunrise.

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