ITC on Friday said the National Company Law Tribunal (NCLT) has approved the amalgamation of its recently acquired spice company Sunrise Foods with itself.
In a notice to the stock exchanges, ITC said the Kolkata bench of NCLT has approved the amalgamation effective April 1, 2021. It also said the two subsidiaries of Sunrise — Hobbits International Foods and Sunrise Sheetgrah — have become wholly-owned subsidiaries of ITC.
Last year May, ITC announced the acquisition of Sunrise Foods which is one of the largest spice brands and the market leader in West Bengal and East. The Rs 2150 crore deal was made by ITC on a ‘cash-free, debt-free’ basis.
ITC’s Aashirvaad range of spices has a strong presence in Telangana and Andhra Pradesh and the company is one of India’s leading producers and exporters of high-quality food-safe spices. The acquisition 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, it had said.
“The deep consumer connect of Sunrise in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company’s agri-business and its pan-India distribution network, will provide significant value creation opportunities for the company,” ITC had said.
Sunrise Foods in 2019-20 had clocked Rs 591.5 crore sales. It was a Kolkata-based family-owned company.