- Earlier in June, Norwegian conglomerate Orkla's Indian unit, the parent of MTR spices and Eastern Condiments, filed for an IPO
- While the rest of FMCG pack is only now realising the potential of the spice market, Orkla was an early mover. Two-thirds of its revenue comes from spices
- Each region has a different taste and there are over 2,000 regional brands. So, commanding a pan-India hold is tough for national brands
- Can a pure-play regional strategy command premium valuations? Orkla’s IPO may have the answers
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India’s packaged-food bigwigs ignored spices for a long time. Not anymore.
Since 2020, everyone from ITC to Tata Consumer Products, from Dabur to Wipro, has been scrambling to cement their place in this essential corner of the Indian kitchen. They’ve pounced on spice brands, sometimes paying top dollar for them, all while their investors cheered them on. In fact, the stocks of Tata Consumer and ITC have both outperformed the S&P BSE FMCG index over the last five years.
Turns out, this was all the vindication that Norwegian conglomerate Orkla needed to go public. Earlier in June, its Indian unit
Orkla has long been ahead of the curve, realising the potential riches in spices way before others did. Its India unit acquired Bengaluru-based MTR’s packaged-food division in 2007 and then Kerala-based spice company Eastern Condiments in 2021.
In FY25, Orkla’s golden goose, MTR, reported a revenue of Rs 2,395 crore—an increase of 10% in the last two years. And now, with over 60% of Orkla’s revenue flowing from spices alone, it’s found the perfect time to shoot its shot.
But this isn’t just another public listing. It’s the opening salvo in what industry insiders are calling the “great spice wars”. And here’s where it gets even spicier: though the category offers some of the highest margins in FMCG products—with
Topping the list are varied regional preferences, so deeply entrenched that they’ve humbled even the mightiest national brands and broken billion-dollar expansion plans. And if you think spices always come in pristine powdered form, think again. After all, there’s a reason their margins are so high.
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