DSM Fresh Foods Limited announced significant corporate developments following its board meeting held on December 31, 2025. The company approved a strategic subsidiary acquisition and proposed changes to its IPO fund utilization, marking important steps in its expansion strategy.

Strategic Acquisition of Avyom Foodtech

The board 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 details are structured as follows:

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. The target company's financial performance shows:

Business Synergies and Strategic Rationale

The acquisition represents a strategic move to strengthen DSM Fresh Foods Limited's presence in the food processing sector. Avyom Foodtech is engaged in manufacturing, processing, preparing, freezing, packaging, branding, marketing, distributing, importing and exporting of food products. The company's product portfolio includes:

• Ready-to-eat foods and ready-to-cook foods
• Frozen foods and ambient food items
• Snacks, gravies, and sauces
• Other allied food preparations

The acquisition is classified as a related party transaction, with common promoters and directors between both companies. The transaction will be conducted on an arm's length basis, and the company expects operational synergies, expansion of product portfolio, and enhancement of market reach.

IPO Fund Reallocation Strategy

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

The reallocation transfers ₹10.00 crores from capital expenditure and marketing categories to unidentified acquisition and general corporate purposes, providing greater flexibility for strategic investments.

Corporate Governance and Compliance

The board meeting, which commenced at 2:30 PM and concluded at 3:40 PM, was conducted in compliance with Regulation 30 of SEBI LODR Regulations. The company has confirmed that no additional governmental or regulatory approvals are required for the acquisition. The proposed IPO fund variation requires shareholder approval through special resolution via postal ballot, in accordance with SEBI regulations and the Companies Act, 2013.

The company also proposed amendments to its Memorandum of Association to expand its main objects clause, adding provisions for food processing, manufacturing infrastructure, research and development, agricultural produce trading, and other allied business activities.

DSM Fresh Foods Limited , operating under the brand name Zappfresh, has reported a strong financial performance for the first half of fiscal year 2026, with significant revenue growth and margin improvements. The company, which recently went public, is positioning itself as a key player in India's organized fresh meat and seafood market.

Financial Highlights

• Revenue for H1 FY26 stood at INR 95.85 crores, representing a 43% year-on-year growth.
• Gross margin improved to 34% in H1 FY26 from 29% in H1 FY25.
• EBITDA margin doubled to 16% from 8% in the same period last year.
• PAT (Profit After Tax) margin increased to 7% from 4% year-on-year.

Business Segment Performance

The company reported a balanced revenue split between its B2B and B2C segments:

This marks a significant shift from the previous year's 70-30 split in favor of B2C, indicating strong growth in the B2B segment.

Product Category Improvements

DSM Fresh Foods has seen substantial margin improvements in key product categories:

Fish and mutton combined now contribute to approximately 46-47% of the company's revenue.

Strategic Initiatives and Future Outlook

1. Omnichannel Approach: The company is focusing on a balanced portfolio across retail, HoReCa, and modern trade channels.

2. Local Meat Shop Partnerships: DSM Fresh Foods is piloting a program to partner with local meat shops, providing them with supplies, technology, and branding support.

3. Expansion Plans: While currently operating in NCR, Bangalore, and Mumbai, the company is cautious about expanding to new geographies, prioritizing profitability and supply chain efficiency.

4. Inorganic Growth: The company is in the process of finalizing two acquisitions in non-meat categories, aimed at the export market. These acquisitions are expected to be significantly larger than previous ones.

5. Technology Integration: DSM Fresh Foods has launched a B2B technology app to streamline ordering processes for offline customers, including hotels, restaurants, and small retailers.

6. Product Portfolio Expansion: The company plans to explore new categories, including seafood and non-meat products.

Deepanshu Manchanda, Managing Director and Chairman of DSM Fresh Foods, expressed confidence in the company's growth trajectory, stating, "We are looking at building a different asset profile, where we would look at expanding into new categories, creating depth in different categories like seafood and even some of the non-meat categories which we are exploring currently."

The company maintains a strong cash position with INR 2.4 crores in cash and equivalents as of September 30, 2025. With its recent IPO raising INR 54 crores, DSM Fresh Foods is well-positioned to fund its expansion plans and technological enhancements.

As the Indian meat market is projected to grow at a CAGR of 8.5% from USD 55 billion in 2024 to USD 114 billion by 2033, DSM Fresh Foods aims to capitalize on this growth potential while maintaining its focus on profitability and sustainable expansion.