DSM Fresh Foods Acquires 51% Stake In Avyom Foodtech

DSM Fresh Foods Limited, a leading  technology-enabled fresh foods platform in India, yesterday announced that its Board of  Directors has approved the acquisition of a 51% controlling stake in Avyom Foodtech  Private Limited (AFPL), marking the Company’s formal entry into the ready food solutions segment, including 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 ₹7.5 crore by  DSM Fresh Foods Limited by subscribing the shares of Avyom Foodtech Private Limited through preferential allotment, resulting in the acquisition of a 51% equity stake in AFPL. In  addition, the Company may explore the induction of external strategic investor(s) through  the issuance of fresh shares in AFPL, subject to approval by the Board. This structure is  intended to ensure strong alignment between the operating management and long-term  capital partners while supporting the Company’s strategic growth objectives. 

As part of the transaction, Avyom Foodtech Private Limited 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 acquisition includes approximately Five (5) acres 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. 

Funds to be deployed in a phased manner in line with the Business Transfer Agreement (BTA )over a period. This structured deployment ensures capital discipline while supporting a  calibrated operational ramp-up.  

Strategic Rationale and Value Creation 

• Formal entry into the processed foods segment, expanding DSM Fresh Foods  portfolio into high-growth RTE and RTC categories 

• Immediate access to a fully operational food processing facility with established  products and proven recipes 

• The acquired business has historically achieved peak annual revenues of  approximately ₹16 crore, demonstrating commercial scalability 

• FSSAI-approved manufacturing processes, ensuring regulatory compliance, quality  assurance, and food safety standards

• Export-ready infrastructure, enabling faster access to international markets and  diversified revenue streams 

• Accelerated time-to-market through acquisition of a running operation rather than  capital-intensive greenfield expansion 

Commenting on the development, Mr. Deepanshu Manchanda, Managing Director, DSM  Fresh Foods Limited, said: “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. 

The transaction accelerates our entry into high-growth RTE and RTC categories and  complements DSM’s core strengths in sourcing, quality control, cold-chain logistics, and  distribution. It provides a strong foundation to revive and scale value-added food offerings,  improve unit economics, and build a durable processed foods vertical that enhances long term stakeholder value.”