DSM Fresh Foods has taken a significant step by acquiring a 51% stake in Avyom Foodtech Private Limited (AFPL) for around Rs. 7.5 crore (about $880,000). This marks DSM’s entry into the booming ready-to-eat (RTE) and ready-to-cook (RTC) food categories.
As part of this deal, AFPL will acquire Ambrozia Frozen Foods’ operating food processing business. This includes about five acres of land, a fully equipped food processing facility, and the necessary approvals for food safety, making it ready for export.
AFPL’s business has previously seen peak annual revenues of around Rs. 16 crore (approximately $1.9 million). This acquisition comes at a time when India’s convenience food market is growing rapidly. Research from Innova Market Insights shows a remarkable 45% increase in consumer interest in convenience foods over the last year, the highest alongside Indonesia. Now, about 60% of consumers globally use convenience foods at least once a week, highlighting a significant shift in eating habits.
Deepanshu Manchanda, managing director at DSM Fresh Foods, sees this acquisition as a pivotal moment. He believes it will help DSM transition from just fresh foods to a comprehensive food solutions provider. This move will speed up their entrance into the high-growth RTE and RTC markets, enhancing their expertise in sourcing, quality, cold-chain logistics, and distribution.
This trend isn’t just a matter of convenience; it reflects changing lifestyles. Busy schedules and urban living have pushed many toward quick meal options. Online food delivery apps and grocery services have gained popularity, making RTE and RTC food more accessible than ever.
As convenience continues to shape our eating habits, companies like DSM are positioning themselves to meet this demand. The future of food is undoubtedly moving toward greater convenience, and this shift has the potential to transform the industry in India and beyond.
For more insights on consumer trends in convenience eating, visit Innova Market Insights.
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RTE Food, India, Acquisition, Convenience Food
