Indian conglomerate ITC has agreed to acquire Prasuma to strengthen its presence in frozen, chilled and ready-to-cook foods.

In a stock-exchange filing, ITC described those segments as "future-facing" categories, which currently have an annual market size of more than Rs100bn ($1.14bn) and are "poised for rapid growth in the years ahead".

ITC will take full control of Prasuma from its owners - Ample Foods and its subsidiary Chao Chao Foods, and Meat and Spice - in three tranches over a period of three years.

The first tranche includes an immediate 43.8% equity stake for Rs1.31bn and the balance will be acquired in tranches through to June 2028.

Prasuma CEO Lisa Suwal and COO Siddhant Wangdi said: “With Prasuma’s strength in manufacturing and innovation, combined with ITC’s expertise in distribution and building new-age brands, we are excited about the significant value that this collaboration will create for consumers in India and globally.”

Prasuma sells more than 170 assorted products under its namesake brand, along with Meatigo by Prasuma and Prasuma Momo Kitchen in over 100 cities.

ITC made its entry into the frozen foods market in 2019 with the launch of the ‘ITC Master Chef’ brand.

ITC said it aims to “redefine the frozen food category” with Prasuma’s other “innovative” frozen products, including Baos, Korean Fried Chicken, Schezwan Momo meals, and Japanese Fried Rice.

ITC director Hemant Malik said: “With good-for-you, first-to-market products, across cuisines, we believe that the combined portfolio will delight our discerning consumers. This investment reaffirms our commitment to building future-facing, best in class, innovative portfolios.”