New Delhi: Even as the economic growth remains sagging under the impact of Covid-19 induced lockdown, the fast-moving consumer goods (FMCG) company ITC Ltd is set to acquire Kolkata based spice maker Sunrise Foods Pvt Ltd.

The acquisition is expected to help the company to further strengthen its position in the FMCG segment.

According to the company’s press release ITC has entered into a share purchase agreement on 23 May 2020 to acquire 100 per cent of the equity share capital of SFPL, a company primarily engaged in the business of spices under the trademark ‘Sunrise’.

The FMCG firm presently sells products ranging from packaged foods to personal care, and with the acquisition it can further consolidate its spice business.

The company’s Aashirvaad range of spices is already a market leader in Telangana and Andhra Pradesh and the Company is one of India's leading producers and exporters of high-quality food safe spices.

Meanwhile, 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. 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.

“The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths through deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages, and packaging knowhow," the company said.

The share purchase agreement and the related processes was completed during lockdown conditions, reflecting the Company’s agility and resilience in dealing with the new normal.

The FMCG company is eying a turnover target of ₹1 trillion by 2030 even as the company is trying to add revenue beyond the cigarettes business. The company is already known for its FMCG brands including Aashirvaad flour, Bingo! chips, B Natural juices, Vivel and Yippee! noodles.