Orkla India Ltd IPO

FMCG

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Price Band

₹695 – ₹730

Lot Size

20

Minimum Bid Quantity

20

Minimum Investment

₹14600

Issue Size

₹1667.54Cr

Opens

2025-10-29

Closes

2025-10-31

Listing

06-11-2025

Subscription Status

Qualified Institutional Buyers

117.63 x

Non-Institutional Investor

54.42 x

Retail Individual Investor

7.05 x

Employees

15.13 x

Total

48.73 x

IPO Details

Issue Type

EQUITY

Face Value

₹1

Tick Size

1

ISIN

INE16NZ01023

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Orkla India Limited is a subsidiary of Orkla ASA, a Norway-based industrial investment company with a legacy of over 370 years and operations in more than 100 countries. Orkla ASA had a market capitalisation of $11 billion as of March 31, 2025, and a consolidated group revenue of $6.2 billion in 2024. Orkla ASA owns a portfolio of leading consumer brands across food, home, and personal care segments. Orkla India operates as a multi-category Indian food company involved in the manufacture and sale of packaged food products. The company operates through its two primary brands, MTR and Eastern, offering products that cater to different meal occasions. Its portfolio includes around 400 products across two key segments — spices (blended and pure) and convenience foods (ready-to-cook, ready-to-eat, and vermicelli products). Major items include sambar masala, chicken masala, turmeric, coriander, dosa mix, and gulab jamun mix. The company has a strong presence in the South Indian markets of Karnataka, Kerala, Andhra Pradesh, and Telangana, and exports to 45 countries, including regions in the Gulf Cooperation Council (GCC), the US, and Canada. As of June 30, 2025, Orkla India operated nine owned manufacturing facilities in India and partnered with contract manufacturers in India, the United Arab Emirates (UAE), Thailand, and Malaysia. It is a subsidiary of Norway-based Orkla ASA.

Pros

  • • Orkla India is a subsidiary of Orkla ASA, a Norway-listed industrial investment company. Orkla ASA’s extensive experience in managing branded consumer goods businesses provides Orkla India with access to advanced governance frameworks, operational standards, and global best practices. The company claims to benefit from Orkla ASA’s Centres of Excellence in areas such as food safety, quality, sustainability, marketing, innovation, information technology, and procurement. This association enables Orkla India to adopt international benchmarks in quality and risk management while supporting its long-term focus on responsible operations and consistent growth within the Indian and global packaged food markets.
  • • Orkla India claims to have a leading position in the South Indian packaged spices market, supported by its brands MTR and Eastern. According to the Technopak Report, it holds a 31.2 percent share in Karnataka, 41.8 percent in Kerala, and 15.2 percent across Andhra Pradesh and Telangana. The company attributes this leadership to its ability to tailor spice blends and food products to regional tastes, offering state-specific variants such as sambar masala, puliogare, and chicken porichathu to suit local culinary preferences.
  • • Orkla India claims to have a strong focus on innovation through recipe enhancement, new product formats, and preparation methods. The company has introduced products such as MTR Minute Fresh batters, ready-to-eat sweets, and the 3-minute breakfast range to expand its convenience offerings. It also launched the “Wok N Roll” brand in 2025 to enter the Pan-Asian cuisine segment. Product innovation is supported by two ‘Cuisine Centres of Excellence’ in Bengaluru and Kochi, which, along with a 37-member product development team and a repository of over 4,000 recipes, contribute to consistent portfolio expansion.

Cons

  • • Orkla India’s operations are dependent on its ability to source key raw materials such as chilli, coriander, wheat products, turmeric, and cumin, along with packaging materials like laminates, corrugated boxes, metal containers, and woven sacks at competitive prices. The cost of raw and packaging materials accounted for Rs 264.69 crore (53.0 percent) of the company’s total expenses for the period ended June 30, 2025; Rs 1,174.13 crore (56.8 percent) in FY25; Rs 1,310.05 crore (62.9 percent) in FY24; and Rs 1,194.01 crore (61.4 percent) in FY23. Any adverse fluctuations in prices or supply due to climatic, logistical, or market factors could negatively affect the company’s business, financial condition, and cash flows.
  • • The top three suppliers accounted for Rs 56.91 crore (17.5 percent) of the company’s total purchases for the period ended June 30, 2025; Rs 198.51 crore (14.9 percent) in FY25; Rs 224.4 crore (17.2 percent) in FY24; and Rs 271.53 crore (20.8 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.
  • • A third-party-owned and operated restaurant chain holds the right to use the trade name “MTR” for its restaurant and hotel business under the MTR Trademark Agreement. While Orkla India owns the trademarks related to packaged foods and beverages, any negative publicity, food safety issues, or quality concerns linked to the restaurant chain may harm the reputation of the “MTR” brand and adversely impact the company’s business, financial condition, and cash flows.

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