DSM Fresh Foods , operating under the Zappfresh brand, has announced the acquisition of a 51% controlling stake in Avyom Foodtech to enter the ready food solutions segment and expand into overseas export markets.

Deal Structure and Investment

The board of DSM Fresh Foods has approved the strategic acquisition through a cash infusion of ₹7.50 crore. The deal structure includes the possibility of inducting external strategic investors through fresh share issuance in Avyom Foodtech, subject to board approval.

Target Company Profile

Avyom Foodtech, formerly IEY Education and incorporated in 2022, specializes in manufacturing, processing, and exporting ready-to-eat and ready-to-cook food products. The company's product portfolio includes frozen foods, snacks, gravies, and sauces.

Asset Acquisition and Infrastructure

The acquisition encompasses significant operational assets including approximately five acres of land, a fully operational food processing facility, and associated plant and machinery. DSM Fresh Foods will assume associated liabilities such as bank borrowings and trade payables as part of the transaction.

Strategic Vision and Market Expansion

Commenting on the development, Deepanshu Manchanda, Managing Director of DSM Fresh Foods, emphasized the strategic value of acquiring a running processed foods business with established capabilities, regulatory approvals, and export readiness. This approach significantly shortens execution timelines while maintaining capital discipline.

The acquisition allows DSM Fresh Foods to diversify its product portfolio beyond its current offerings and establish a strong presence in the rapidly growing convenience food sector, while simultaneously opening doors to international export opportunities.

Market Performance

Shares of DSM Fresh Foods settled at ₹140.50 on BSE, declining 2.53% from the previous close following the acquisition announcement.

DSM Fresh Foods Limited has officially announced its strategic entry into the high-growth Ready-to-Eat (RTE) and Ready-to-Cook (RTC) segment through the acquisition of Avyom Foodtech Private Limited. The company issued a formal press release confirming the transaction details and its subsidiary's subsequent acquisition of Ambrozia Frozen Foods' operational business.

Strategic Acquisition of Avyom Foodtech

The board had previously approved an investment in Avyom Foodtech Private Limited through private placement, resulting in the target company becoming a subsidiary of DSM Fresh Foods Limited. The acquisition structure demonstrates the company's commitment to expanding its food processing capabilities:

Avyom Foodtech Private Limited, formerly known as IEY Education Private Limited, was incorporated on July 22, 2022. The company operates in food processing, manufacturing, and allied food products sector with its registered office at 9 Maha Laxmi Market Chandni Chowk, Central Delhi.

Ambrozia Frozen Foods Business Acquisition

On December 31, 2025, Avyom Foodtech Private Limited entered into a binding term sheet with Ambrozia Frozen Foods, a partnership firm, for the proposed acquisition of Ambrozia's operational food processing business on a going concern basis through a slump sale. The transaction is subject to customary conditions precedent, definitive agreements, and applicable approvals.

RTE & RTC Segment Expansion Strategy

The official press release highlights DSM Fresh Foods' strategic focus on entering the high-growth RTE and RTC segment. This acquisition represents a significant milestone in the company's diversification strategy, leveraging Avyom Foodtech's capabilities to establish a strong presence in the ready-to-eat and ready-to-cook food market. The combination creates substantial operational synergies and positions the company to capitalize on the growing consumer demand for convenient food solutions.

IPO Fund Reallocation Strategy

The board had also approved changes in the utilization of unutilized IPO funds, subject to shareholder approval through postal ballot:

Corporate Governance and Compliance

The company has maintained full compliance with regulatory requirements, with Managing Director Deepanshu Manchanda signing the official press release. The transaction is being conducted in accordance with SEBI LODR Regulations, with the company confirming that appropriate disclosures will be made as the acquisition progresses through various completion stages. The Business Transfer Agreement will be executed upon finalization of due diligence, with further details to be disclosed as required under applicable laws.