Mitra Announces ₹787 Crore Merger with Tierra Agrotech, IPO Planned by September 2026

Delhi NCR-based FMCG company Mitra has announced a strategic merger with BSE-listed Tierra Agrotech in a transaction valued at ₹787 crore, with plans to list on the stock exchange by September 2026. The deal creates an integrated food platform covering the entire value chain from seed development and crop cultivation to processing and branded consumer products.

Transaction Overview

The merger brings together complementary business capabilities to create a vertically integrated food company. Key transaction details include:

Business Synergies and Market Position

Mitra currently operates an extensive retail distribution network across 38 cities with over 40,000 retail outlets and 500 distributors. The company has established itself as the second-largest player in the Delhi NCR packaged flour market after ITC. Founded in 2023 and operated by Nishpra Community Solutions, Mitra sells flour, pulses, rice, spices, oils and instant mixes.

Tierra Agrotech brings significant agricultural expertise to the partnership. Established in 2012 through the acquisition of Monsanto's cotton business and Xylem, the Hyderabad-based company specializes in crop science and agricultural supply chain management. This upstream integration will support Mitra's food manufacturing operations by providing better control over raw material sourcing and quality.

Leadership and Strategic Benefits

Abhishek Kaushik, founder of Mitra, will serve as promoter and managing director of the combined entity. The merger is designed to eliminate Mitra's dependency on external suppliers for raw materials while improving margins through tighter quality control across the production chain.

The vertical integration strategy offers several operational advantages:

• Enhanced quality control from farm to retail
• Reduced dependency on external raw material suppliers
• Improved profit margins through supply chain optimization
• Strengthened market position in the FMCG sector

Regulatory Approvals and Market Performance

The transaction requires approvals from SEBI and the National Company Law Tribunal before completion. Bestvantage Investments served as advisor on the transaction structure. The subsequent IPO is intended to fund capacity expansion and support nationwide distribution growth.

Shares of Tierra Agrotech were trading at ₹49.00 on BSE, up by ₹0.58 or 1.20% during morning trade, reflecting positive market sentiment toward the merger announcement.

Future Outlook

The combined entity expects to achieve consolidated revenues of approximately ₹400 crore in FY27, driven by operational efficiencies from vertical integration. The merger positions the company to capitalize on India's growing FMCG market while maintaining strong supply chain control and expanding its national footprint through the planned public listing.