Mumbai, January 2, 2026: DSM Fresh Foods Limited (BSE: ZAPPFRESH), a leading technology-enabled fresh foods platform in India, yesterday announced that its Board of Directors has approved the acquisition of a 51% controlling stake in Avyom Foodtech Private Limited (AFPL), marking the Company’s formal entry into the ready food solutions segment, including ready-to-eat (RTE) and ready-to-cook (RTC) categories, along with expansion into overseas export markets.
The acquisition will be carried out through a cash infusion of approximately ₹7.5 crore by DSM Fresh Foods Limited by subscribing the shares of Avyom Foodtech Private Limited through preferential allotment, resulting in the acquisition of a 51% equity stake in AFPL. 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. 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.
As part of the transaction, Avyom Foodtech Private Limited has entered into a binding term sheet with Ambrozia Frozen Foods to acquire, on a going-concern basis through a slump sale, Ambrozia’s operating food processing business, together with identified assets and liabilities. The acquisition includes approximately Five (5) 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.
Funds to be deployed in a phased manner in line with the Business Transfer Agreement (BTA )over a period. This structured deployment ensures capital discipline while supporting a calibrated operational ramp-up.
Strategic Rationale and Value Creation
- Formal entry into the processed foods segment, expanding DSM Fresh Foods portfolio into high-growth RTE and RTC categories
- Immediate access to a fully operational food processing facility with established products and proven recipes
- The acquired business has historically achieved peak annual revenues of approximately ₹16 crore, demonstrating commercial scalability
- FSSAI-approved manufacturing processes, ensuring regulatory compliance, quality assurance, and food safety standards
- Export-ready infrastructure, enabling faster access to international markets and diversified revenue streams
- Accelerated time-to-market through acquisition of a running operation rather than capital-intensive greenfield expansion
Commenting on the development, Mr. Deepanshu Manchanda, Managing Director, DSM Fresh Foods Limited, said: “This acquisition represents a strategic inflection point in DSM’s evolution from a fresh foods platform to an integrated, end-to-end food solutions company. 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.
The transaction accelerates our entry into high-growth RTE and RTC categories and complements DSM’s core strengths in sourcing, quality control, cold-chain logistics, and distribution. It provides a strong foundation to revive and scale value-added food offerings, improve unit economics, and build a durable processed foods vertical that enhances long term stakeholder value.”
