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DSM Fresh Foods enters RTE & RTC segment with acquisition of Ambrozia
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Tuesday, 27 January, 2026, 14 : 00 PM [IST]
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Our Bureau, Mumbai
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DSM Fresh Foods Limited, a technology-enabled fresh foods platform operating under the ZappFresh brand, has announced its strategic entry into the fast-growing Ready-to-Eat (RTE) and Ready-to-Cook (RTC) foods segment through the acquisition of the operating business of Ambrozia Frozen Food Partnership Firm.
The acquisition has been executed through a binding business transfer agreement (BTA) by Avyom Foodtech Private Limited, marking DSM Fresh Foods’ expansion into processed and frozen foods via a revenue-generating, asset-backed platform. The transaction enables DSM to diversify its portfolio beyond fresh foods and tap into one of the fastest-growing segments of India’s packaged food industry.
As part of the transaction structure, DSM Fresh Foods Limited will acquire a 76% equity stake in Avyom Foodtech through a primary cash infusion of approximately Rs. 8 crore into the acquired business. Additionally, DSM’s promoter, Deepanshu Manchanda, will invest around Rs. 2 crore through a fresh issue of shares, comprising 19% equity, along with an additional 5% sweat equity, at the same valuation.
The acquisition provides DSM immediate scale in processed foods, significantly reducing the typical 12–18 month timeline associated with greenfield expansion. Ambrozia brings with it a 30,000 sq. ft. integrated manufacturing facility equipped with four parallel automated and semi-automated production lines and in-house QA/QC laboratories. The FSSAI-approved and export-compliant facility positions DSM to access international markets and diversify revenue streams.
Ambrozia’s existing frozen and processed foods portfolio has demonstrated strong customer acceptance, generating revenues of approximately Rs. 13 crore in FY25, with a current annualised run-rate of Rs. 16 crore. Integration with DSM’s cold-chain logistics, quality systems and distribution network, along with rebranding under ZappFresh, is expected to drive higher throughput, margin expansion and operating leverage.
Commenting on the development, Deepanshu Manchanda, managing director, DSM Fresh Foods Limited, said the acquisition represents a critical milestone in the company’s evolution into an integrated food solutions platform. He added that the structured, performance-linked transaction ensures capital discipline while enabling DSM to build a scalable RTE and RTC vertical aligned with long-term value creation.
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