Orkla India eyes steady double-digit growth driven by organic expansion

Bengaluru-based Orkla India, the parent company of packaged foods maker MTR Foods, plans to sustain its long-term double-digit growth, driven primarily by organic expansion.

“We have always delivered double-digit growth in the long term, and we will continue to do so in the future,” said Sanjay Sharma, Managing Director and CEO of Orkla India. “When I talk about that, I’m really talking about driving it through organic growth. Acquisitions are few and far between, but we will pursue them when the right opportunity arises.”

The company’s growth strategy focuses on deepening market penetration, increasing consumption frequency, and catering to the evolving preferences of younger, convenience-driven consumers.

The diversified food company is set to make its Dalal Street debut, with its initial public offering (IPO) opening for subscription today, October 29, and closing on October 31. Through the IPO, the company plans to raise ₹1,667.54 crore via an offer for sale (OFS) of 2.28 crore shares.

According to Sharma, India’s growing income levels and changing lifestyles are pushing consumers from the unorganised to the organised food market. “Today, nearly 60% of the spices market is still unorganised. As people earn more, they prefer branded, non-adulterated products they can trust,” he said.

He noted that while older generations made spices at home, today’s consumers prefer ready-to-use branded products. “My wife doesn’t make her own masalas—she buys branded spices instead. That’s the shift we are seeing,” Sharma added.

Orkla India expects convenience foods to be a major growth driver, supported by a younger, tech-savvy consumer base. “Millennials and Gen Zs are now the dominant consumers. With more women working, less time at home, and easy access to recipes online, convenience foods are becoming a natural choice,” Sharma explained.

The company’s two major brands—MTR Foods and Eastern Condiments—together cover around 200 products. While MTR focuses more on ready-to-eat and convenience foods, Eastern has a strong base in the spices segment.

MTR contributes around 53% of Orkla India’s total revenues, while Eastern accounts for 47%. Exports make up about 20–21% of total business, with 70% of domestic sales coming from South India.

“MTR has a very healthy portfolio of convenience foods as well as blended spices, which deliver higher gross margins,” said Suniana Calapa, CFO of Orkla India. “In the case of Eastern, too, there has been a tremendous improvement in both gross and EBITDA margins since the acquisition, though it is still slightly behind MTR.”

Overall, spices contribute nearly two-thirds (67%) of Orkla India’s total revenues, while the remaining one-third comes from convenience foods.

While India’s quick commerce and food delivery platforms are growing fast, Sharma said their rise hasn’t significantly affected the company’s business. “Every time you don’t cook a meal at home, it affects our business,” he acknowledged. “But India is a large enough market to accommodate all models. Most of our core customers, especially in rural areas, still cook at home.”

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