DSM Fresh Foods steps into ready foods with Avyom acquisition

MUMBAI: DSM Fresh Foods Limited has cooked up its next phase of growth. The ZappFresh parent has approved the acquisition of a 51 per cent controlling stake in Avyom Foodtech Private Limited, marking its formal entry into the fast-growing ready-to-eat and ready-to-cook foods space. 
 

The move signals a clear shift from being a fresh foods specialist to becoming a broader food solutions player. Through this acquisition, DSM Fresh Foods gains immediate access to processed foods, export-ready infrastructure and a running manufacturing operation, without the long wait or heavy costs of building from scratch.

The deal involves a cash infusion of around Rs 7.5 crore by DSM Fresh Foods through a preferential allotment of shares in Avyom Foodtech. The structure allows room for future strategic investors at the Avyom level, ensuring long-term alignment while keeping growth capital flexible and disciplined.

As part of the transaction, Avyom Foodtech has entered into a binding agreement to acquire the operating business of Ambrozia Frozen Foods through a slump sale. The acquisition brings with it about five acres of land, a fully functional food processing facility and plant and machinery, along with identified liabilities such as bank borrowings and trade payables. Funds will be deployed in phases in line with the business transfer plan.

The strategic appeal is straightforward. DSM Fresh Foods steps straight into high-demand RTE and RTC categories, gains access to FSSAI-approved manufacturing and taps into export markets from day one. The acquired business has historically clocked peak annual revenues of about Rs 16 crore, offering a ready base for scaling up.

Commenting on the development, DSM Fresh Foods managing director Deepanshu Manchanda, said the acquisition marks a turning point for the company. He noted that buying a running, compliant and export-ready operation sharply reduces execution time while strengthening unit economics and long-term value creation.

Avyom Foodtech, incorporated in 2022, is engaged in manufacturing and exporting a wide range of ready-to-eat and ready-to-cook products including frozen foods, snacks, gravies and sauces. Ambrozia Frozen Foods, whose business is being acquired, operates an export-compliant facility with a capacity of around 15 tonnes per day and a portfolio of over 150 SKUs. Its customer list spans institutional buyers and QSR players, with exports to Canada, the UK and the UAE.

For DSM Fresh Foods, best known for its technology-led approach to sourcing and delivering quality meat and food products under the ZappFresh brand, the deal adds a new layer to its story. Fresh may still be its foundation, but ready food is now firmly on the menu.