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Diversified conglomerate ITC Ltd said on Thursday that the scheme of amalgamation of Sunrise Foods has been sanctioned by NCLT, Kolkata Bench.
The scheme of amalgamation is effective April 1.
Two subsidiaries of Sunrise — Hobbits International Foods and Sunrise Sheetgrah — are now wholly-owned subsidiaries of ITC too.
“...the Scheme of amalgamation of Sunrise Foods Private Limited (Sunrise) with the Company (the Scheme) has been sanctioned by National Company Law Tribunal, Kolkata Bench. Certified copies of the order have been filed today with the Registrar of Companies, West Bengal, both by the Company and Sunrise,” it said in a notification to the bourses.
Sunrise presence
In May 2020, ITC had announced the acquisition of Sunrise. It completed acquisition of the spice manufacturer in July.
ITC completes acquisition of spice-maker Sunrise in ₹2,150-cr all-cash deal
The company had made an “upfront” cash deal price of ₹2,150 crore. Shares of Sunrise Foods were acquired on a “cash-free, debt-free” basis. In addition, the sellers are entitled to contingent consideration of an amount not exceeding ₹150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones over a period of two years.
How the Sunrise Foods buy spices up business for ITC
Based out of Kolkata, the 70-year-old Sunrise had a turnover of ₹591 crore in FY20 and a net worth of ₹242.89 crore. It has strong presence in the eastern and north-eastern parts of the country.
The acquisition is expected to help ITC ramp up its existing spices portfolio under the Aashirvaad brand. Aashirvaad’s portfolio of spices has a strong presence in Andhra Pradesh and Telangana.
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