Orkla India Market Debut: MTR Foods owner files draft papers, a look into key details

Orkla India, the force behind the iconic MTR and Eastern brands, has filed its draft red herring prospectus (DRHP) with SEBI, setting the stage for a significant public offering in the Indian food sector.

A legacy reimagined

Many might know Orkla India by its earlier name, MTR Foods Limited, a brand that has been synonymous with South Indian culinary tradition for decades. Incorporated in 1996 as a public limited company, it became MTR Foods Private Limited in 2008 and later Orkla India Private Limited in January 2024. The latest transformation came in April 2025, when it became Orkla India Limited, following its conversion back to a public limited company.

Market Debut structure

Orkla India’s Market Debut is structured as a pure Offer for Sale (OFS) of up to 2,28,43,004 equity shares of face value Rs. 1 each. The shares are being offered by Orkla Asia Pacific Pte. Ltd.—an indirect wholly owned subsidiary of Orkla ASA—and other eligible shareholders. The company itself will not receive any proceeds from the Market Debut; all funds will go to the selling shareholders. The shares are proposed to be listed on both BSE and NSE, giving you an opportunity to invest in a well-established food company with a formidable presence in the Indian market.

Product portfolio

Orkla India is a multi-category food company with a diverse product portfolio designed to cater to every meal occasion—breakfast, lunch, dinner, snacks, beverages, and desserts. The company’s brands, MTR and Eastern, are rooted in authenticity and South Indian culinary heritage. Their offerings span two major categories:

• Spices: Both blended spices (such as Sambar Masala, Chicken Masala, Puliogare Masala, Rasam Masala, Meat Masala) and pure spices (including Chilli, Kashmiri Chilli, Turmeric, Coriander, and Cumin).

• Convenience Foods: Ready-to-cook and ready-to-eat products like Gulab Jamun mix, Rava Idli mix, 3-Minute Poha, and Dosa mix, which simplify meal preparation for millions of Indian households.

As of March 31, 2025, Orkla India’s portfolio included over 400 products, with an average daily sale of approximately 2.3 million units in fiscal 2025. Basis the Technopak Report, Orkla India was among the top four companies in revenue from operations among leading spices and convenience food peers in fiscal 2024.

Assets and Equity

Orkla India’s balance sheet as of March 31, 2025, demonstrates a robust financial position:

• Total Assets: Rs. 31,713 million

• Equity Share Capital: Rs. 137 million

• Other Equity: Rs. 24,458 million

• Total Equity: Rs. 24,595 million

The company’s non-current assets include significant investments in property, plant, and equipment, goodwill, and intangible assets. Current assets are dominated by inventories, trade receivables, and cash equivalents. The company’s equity base has grown consistently, reflecting its ability to reinvest profits and maintain financial stability.

Strengths of the Market Debut

Category market leadership and deep consumer understanding: The company is a clear market leader in the South Indian packaged spices sector, with its MTR and Eastern brands enjoying strong brand equity and extensive household penetration—reaching nine out of ten households in core states like Karnataka and Kerala.

Multi-category portfolio and product innovation: The company is not only a leader in spices but also drives product innovation across multiple food categories. Recent launches include MTR Minute Fresh batters, ready-to-eat sweets, and a 3-Minute Breakfast range to address evolving consumer needs. It has also ventured into new cuisines to innovate and expand its portfolio.

Robust distribution and export capabilities: With a pan-India distribution network spanning 843 distributors, 1,800 sub-distributors, and presence in over 40 countries, the company has unmatched reach. Its products are available through modern trade, e-commerce, and quick-commerce platforms, with e-commerce sales growing by 100.4% from Fiscal 2023 to Fiscal 2025. The company’s export arrangements ensure its brands are present not only across India but also in major global markets such as the GCC, US, Canada, Australia, and New Zealand.

Operational risks

Volatility in raw material and packaging costs: Orkla India’s operations rely heavily on the availability and pricing of key raw materials such as chilli, coriander, wheat products, turmeric, and cumin, as well as packaging materials like laminates, corrugated boxes, metal containers, and woven sacks. In fiscal 2025, the cost of raw materials and packaging accounted for 56.8% of total expenses, down from 62.9% in fiscal 2024. Prices and availability of these materials are influenced by factors such as crop failures, climatic conditions, transportation costs, and global market dynamics.

Food safety and regulatory compliance: The company operates in a sector where risks of contamination, adulteration, labelling errors, and spoilage are inherent. While Orkla India adheres to strict quality checks and regulatory standards, any lapses could result in regulatory action, reputational damage, and legal proceedings. The company has received regulatory notices in the past for issues such as pesticide residues and labeling discrepancies, though no major incidents were reported in the last three fiscal years.

Market Debut Details

• Issue Type: Book Build Issue
  

• Face Value: Rs. 1 per equity share
  

• Offer for Sale: Up to 2,28,43,004 equity shares
  

• Listing: BSE & NSE
  

• Retail Quota: Not more than 35%
  

• QIB Quota: Not more than 50%
  

• NII Quota: Not more than 15%
  

• Market Lot: Details to be announced
  

Conclusion

Orkla India’s Market Debut is more than just a financial event—it’s a testament to the enduring appeal of Indian culinary tradition, packaged with modern efficiency and global standards. The firm's ability to blend heritage with innovation, its expansive product portfolio, and its robust financials position it as a formidable player in the Indian food sector. The Market Debut, structured as an OFS, is also a chance for existing shareholders to unlock value, reflecting confidence in the company’s future prospects. If you’re looking for exposure to a legacy brand that continues to evolve, this Market Debut could be a pretty great opportunity.