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.

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.