MTR owner eyes IPO in 2025

The Indian arm of the Norwegian investment company Orkla ASA, which owns spice brands like MTR and Eastern, is exploring the possibility of launching an initial public offering (IPO) in 2025, said a top company executive.

“The ASA board just cleared the proposal.

"We had done a pre-IPO study last year to understand what we need to do and based on that the board said, ‘okay, let’s go ahead and explore capital markets’,” Sanjay Sharma, CEO, Orkla India, told Business Standard.

“It’s not a definitive direction for us to go, so we are in the process of exploring that.

"It’s too early for us to have a very clear perspective about it,” Sharma said on the sidelines of the World Food India event being held at Bharat Mandapam.

The top company executive said it should happen “sometime in 2025”.

Orkla ASA entered India in 2007 with its acquisition of Bengaluru-based MTR.

In 2011, it bought MTR’s wholly-owned subsidiary Rasoi Magic and acquired the Kerala-based Eastern spices in 2020.

In 2023, the company reorganised its businesses under one entity — Orkla India, which has three business units – MTR, Eastern and international.

Meanwhile, the company is also looking to expand its presence in the foods category with wet batters for idlis and dosa and pre-packed regional delicacies like Mysore pak, Bombay halwa, and payasam.

“The wet batter market has started evolving.

"It is a different kind of market that requires refrigeration.

"It needs the supply chain and factories to be developed like that.

"We're growing month-on-month in the segment and that business is developing well,” said Sunay Bhasin, CEO, MTR.

The company is also looking to expand its presence in the international market – with a focus on the Gulf Cooperation Council (GCC) countries.

“International business contributed as much as 18 per cent to the overall revenue of the company last year.

"This year, we expect it to contribute over 20 per cent to revenue,” said Ashvin Subramanyam, CEO, international business, Orkla India.

The company recorded a revenue of Rs 2,300 crore in 2023.