DSM Fresh Foods acquires majority stake in Avyom Foodtech

New Delhi, Jan 2 (PTI) DSM Fresh Foods, which operates under the brand Zappfresh, on Friday announced the acquisition of a 51 per cent stake in Avyom Foodtech to enter the ready food solutions segment.

The deal will be carried out through a cash infusion of approximately Rs 7.5 crore by DSM Fresh Foods. The acquisition will also help it expand into overseas export markets, said a company statement.

The board of DSM Fresh Foods has approved the acquisition of a 51 per cent controlling stake in Avyom Foodtech, it said in a filing.

Avyom Foodtech (formerly IEY Education), incorporated in 2022, is engaged in the manufacturing, processing, and export of ready-to-eat and ready-to-cook food products, including frozen foods, snacks, gravies, and sauces.

"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," it said, adding that "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".

The acquisition includes approximately five 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.

Commenting on the development, Deepanshu Manchanda, Managing Director, DSM Fresh Foods, said: "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".

Shares of DSM Fresh Foods on Friday settled at Rs 140.50 on BSE, down 2.53 per cent from the previous close. PTI KRH KRH BAL BAL