With this, the company has entered into the ready-to-eat (RTE) and ready-to-cook (RTC) categories
Marking the company’s formal entry into the ready food solutions segment, DSM Fresh Foods, a technology-enabled fresh foods platform operating under the ZappFresh brand, has notified that board of directors has approved the acquisition of a 51 per cent controlling stake in Avyom Foodtech or AFPL.
With this, the company has entered into the ready-to-eat (RTE) and ready-to-cook (RTC) categories, along with expansion into overseas export markets. The acquisition will be carried out through a cash infusion of approximately Rs 7.5 crore by DSM Fresh Foods by subscribing the shares of AFPL through preferential allotment, resulting in the acquisition of a 51 per cent equity stake in AFPL.
“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. By acquiring a running processed foods business with established capabilities, regulatory approvals, and export readiness, we are significantly shortening our execution timeline while maintaining capital discipline,” stated Deepanshu Manchanda, Managing Director, DSM Fresh Foods.
As part of the transaction, AFPL has entered into a binding term sheet with Ambrozia Frozen Foods to acquire, on a going-concern basis through a slump sale, Ambrozia’s operating food processing business, together with identified assets and liabilities, the official statement added.
The acquisition includes approximately Five acre of land, a fully operational food processing facility, and associated plant and machinery, with associated liabilities such as bank borrowings and trade payables being assumed. The company the acquired business has historically achieved peak annual revenues of approximately Rs 16 crore.
