Orkla consolidates MTR, Eastern and International Business into single entity Orkla India

Orkla ASA, the Norwegian industrial investment company, has consolidated its three business units in India – MTR, Eastern, and International Business (IB) – into a single entity named Orkla India.

This move is part of Orkla’s larger transition from a branded consumer goods company to an investment company.

The Orkla India portfolio is the 6th largest in Orkla ASA’s 12 autonomous portfolios of companies, globally, contributing about 4 per cent to Orkla’s overall business, this strategic change is expected to streamline operations and leverage synergies.”

While the consumer-facing brands, MTR and Eastern, will retain their identities, the consolidation primarily aims to optimise back-end and central functions.

MTR, a century-old brand, will focus on expanding its presence in the vegetarian food category in Karnataka and Andhra Pradesh. Eastern, a 40-year-old brand in the masala category, will diversify into a broader food category. The international business unit, previously serving the Indian diaspora, will expand to target both the diaspora and mainstream consumers worldwide.

“MTR is expected to contribute approximately 45 per cent of the total business, Eastern 37 per cent, and international businesses around 18 per cent. This consolidation recognises the international potential of MTR and Eastern, leading to the formation of an international business unit,” said Sanjay Sharma, CEO of Orkla India.

Also read: ‘Spices and condiments clocks 12-15% yearly growth in India’

Orkla has been present in the Indian market for 16 years and acquired a 67.8 per cent stake in Eastern in 2021. “Both MTR and Eastern are of equal size, and with Eastern coming in, we are Rs 2,200 crore in size,” said the CEO.

Further, Orkla India is committed to pursuing both organic and inorganic growth opportunities in the country. In terms of organic growth, the CEO mentioned expanding into the ready-to-eat sweets category. The MTR RTE Sweets factory in Tumkur, spanning 30,000 sq ft, represents an investment of Rs 10 crore.

Regarding inorganic opportunities, the focus will remain on core categories such as spices and masala. Over the past three years, Orkla has invested Rs 100 crore, and put an annual CAPEX of Rs 25-30 crore across all its businesses.

In a further reorganisation move, Sanjay Sharma, the CEO of MTR, will lead Orkla in India as the CEO of Orkla India. He will oversee the operations of the three business units, each with its independent CEO, all reporting to him.