New Delhi: Norwegian industrial investment company Orkla ASA, which owns MTR Foods and Eastern Condiments, on Wednesday announced the reorganization of its Indian operations under one business entity, Orkla India.
Orkla, which operates in the country’s packaged spices and convenience foods markets, forayed into India in 2007 through the takeover of MTR Foods. In 2020, it picked up a majority 67.8% stake in Kerala-based spice maker Eastern Condiments Pvt. Ltd
Orkla India is being reorganized by creating three business units–MTR, Eastern, and international business (IB), the company said on Wednesday.
The move will enhance the collective business capabilities of Orkla India and drive sharper growth focus across business units.
As part of this reorganization, Sanjay Sharma, erstwhile CEO of MTR has been appointed as Orkla India, CEO.
“Sharma will be responsible for overseeing the operations of the three business units with each having its own independent CEO, reporting to Sharma. Orkla India will now have a wider product portfolio, featuring products from MTR and Eastern and a robust international presence through the newly established IB unit. Both MTR and Eastern will maintain their independent brand identities while benefiting from the mutual synergies, scale, expertise, and cost advantage that this reorganization brings along,” the company said.
“Our acquisition of Eastern has significantly scaled our business in India reaffirming our position in this market. Sanjay Sharma will spearhead Orkla India, and we look forward to continued success in the market with this realignment. The three business units will play a pivotal role in fortifying Orkla’s overall portfolio which believes in the strength of local brands and leadership within distinct markets,” Atle Vidar Nagel Johansen, Chairman of Orkla India, said.
Orkla will now focus on building the existing MTR and Eastern brands in southern markets.
“It is intrinsically tied to our culture, language, and customs, rooted deeply in our local heritage. We are a collection of such heritage brands that are considered to be the custodians of culture and regional food on their soil. Each of our business units is at a different stage of evolution, and under one umbrella of Orkla India, we will have a deep dedicated focus to accelerate their growth,” Sharma said.
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Updated: 11 Oct 2023, 12:44 PM IST