DSM Fresh Foods has taken a decisive step into India’s fast-expanding ready food market by approving the acquisition of a controlling stake in Avyom Foodtech Private Limited, signalling a strategic shift beyond its core fresh foods business. The board of the listed company, which operates under the ZappFresh brand, has cleared the purchase of 51 percent equity in Avyom Foodtech through a cash investment of about Rs 7.5 crore, marking its entry into ready-to-eat and ready-to-cook categories.
The move positions DSM Fresh Foods to tap into rising demand for convenience-led food solutions, driven by urban consumption patterns and higher penetration of frozen and processed foods. The structure of the transaction allows for future participation by strategic investors in Avyom Foodtech, subject to board approval, a step aimed at strengthening capital support while keeping operating leadership closely aligned with long-term growth plans.
As part of the wider transaction framework, Avyom Foodtech has signed a binding agreement to acquire the operating food processing business of Ambrozia Frozen Foods on a slump-sale basis. This acquisition brings with it around five acres of land, a fully functional processing plant, and installed machinery, along with related liabilities such as bank loans and trade payables. The assets are expected to give DSM immediate manufacturing capability without the delays and costs typically associated with building a facility from scratch.
According to disclosures, the acquired processing business has previously recorded peak annual revenues of about Rs 16 crore, offering proof of commercial viability. The facility operates under FSSAI approvals and is equipped for export-oriented production, providing DSM with a platform to explore overseas markets alongside domestic expansion.
Managing Director Deepanshu Manchanda said the acquisition marks a turning point for DSM Fresh Foods as it evolves into a broader food solutions company. By integrating processed foods with its existing strengths in sourcing, cold-chain management and distribution, the company aims to improve unit economics and build a scalable value-added foods vertical. The investment is expected to be rolled out in phases, aligning capital deployment with operational scale-up and demand growth.
