DSM Fresh Foods has acquired a 51% stake in Indian company Avyom Foodtech Private Limited (AFPL) for approximately Rs. 7.5 crore (US$880,000), marking its entry into the ready-to-eat and ready-to-cook categories.
As part of the transaction, AFPL has entered a binding term sheet to acquire Ambrozia Frozen Foods’ operating food processing business through a slump sale. The deal includes approximately five acres of land, a fully operational food processing facility with FSSAI approvals, and export-ready infrastructure.
The acquired business has historically achieved peak annual revenues of approximately Rs. 16 crore (US$1.9 million).
The move comes as India’s convenience food sector experiences rapid expansion. According to Innova Market Insights, the country has seen a 45% spike in consumers using convenience foods over the past 12 months – the strongest growth globally alongside Indonesia. The market research firm notes that 3 in 5 consumers globally now use convenience foods at least once weekly.
“This acquisition represents a strategic inflection point in DSM’s evolution from a fresh foods platform to an integrated, end-to-end food solutions company,” says Deepanshu Manchanda, managing director at DSM Fresh Foods.
“The transaction accelerates our entry into high-growth RTE and RTC categories and complements DSM’s core strengths in sourcing, quality control, cold-chain logistics, and distribution.”