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Orkla, owner of MTR Foods, restructures India Business
MTR Foods and Eastern Condiments have been consolidated under one entity, Orkla India and Sanjay Sharma has been named as CEO.
Norwegian industrial investment company Orkla ASA, the owner of MTR Foods and Eastern Condiments, has announced a significant reorganisation of its Indian operations, consolidating them under one entity known as Orkla India. Orkla originally entered the Indian market in 2007 with the acquisition of MTR Foods, and in 2020, it obtained a majority 67.8% stake in Kerala-based spice manufacturer Eastern Condiments.
This restructuring involves the creation of three distinct business units within Orkla India: MTR, Eastern, and International Business (IB). The move is intended to improve the overall business capabilities of Orkla India and establish a more focused growth strategy across these business units.
As part of this reorganisation, Sanjay Sharma, the former CEO of MTR, has been appointed as the CEO of Orkla India. Sharma will oversee the operations of the three business units, each of which will have its own independent CEO, reporting to Sharma. This restructuring will result in a broader product portfolio for Orkla India, incorporating products from MTR and Eastern, as well as a robust international presence through the newly established IB unit. Both MTR and Eastern will maintain their distinct brand identities while benefiting from the synergies, expertise, and cost advantages that this restructuring provides.
Atle Vidar Nagel Johansen, chairman of Orkla India, expressed confidence in this realignment, stating, "Our acquisition of Eastern has significantly expanded our business in India, reaffirming our position in this market. Sanjay Sharma will lead Orkla India, and we anticipate ongoing success in the market with this restructuring. The three business units will play a pivotal role in strengthening Orkla's overall portfolio, which places great importance on local brands and leadership within specific markets."
Orkla's primary focus will be on strengthening the existing MTR and Eastern brands in southern markets, leveraging their cultural and regional significance to drive growth.