MTR Foods, one of South India’s most iconic and enduring food brands, is preparing for its debut on the public markets. The IPO will be launched by Orkla India — the Indian arm of Norwegian consumer goods conglomerate Orkla ASA — which owns both MTR Foods and Eastern Condiments. These two brands, each with deep regional roots and strong consumer loyalty, have become synonymous with authentic South Indian cuisine across millions of households.
Having filed its DRHP, Orkla India proposes to sell up to 2.28 crore equity shares in a total Offer for Sale (OFS). With a century-old heritage, consistently strong financial performance, extensive distribution reach, and increasing global scale, MTR Foods IPO offers a compelling blend of tradition and modern-day FMCG innovation — positioning itself as a unique investment story in India’s fast-growing branded food sector.
🏛️ Company Legacy: A Century of Culinary Heritage
MTR’s origin dates back to 1924, with the iconic ‘MTR restaurant’ in Bangalore — a landmark still drawing food lovers today. What began as a humble kitchen is now a multi-category food powerhouse with a presence in over 40 countries, offering more than 400 SKUs.
- In 1975, the Maiya family forayed into packaged food with instant mixes — decades before “ready-to-cook” became a buzzword.
- In 2007, MTR Foods was acquired by Orkla ASA, a move that institutionalized global governance, innovation systems, and supply chain best practices.
- The Eastern Condiments acquisition in 2021 further expanded its reach across Kerala and added export strength.
The company today operates through two deeply respected and regionally beloved brands:
- MTR: Vegetarian, traditional, Karnataka-rooted products.
- Eastern: Kerala cuisine-based spices and condiments.
Together, they represent legacy, scale, and trust — the three pillars of India’s consumer FMCG renaissance.
Orkla India IPO Structure
Orkla India IPO is a pure OFS, offering investors a chance to enter an established business — albeit without fresh capital entering the company.
Offer Details:
- Total Offer Size: Up to 2,28,43,004 Equity Shares
- Face Value: INR 1 per share
- Offer Structure:
- Orkla Asia Pacific Pte.: Up to 20.56 million shares
- Navas Meeran: 1.14 million shares
- Feroz Meeran: 1.14 million shares
Promoter Holding Pre-IPO:
- Orkla Asia Pacific: 90%
- Navas Meeran & Feroz Meeran: 5% each
- Total Share Capital Pre-Offer: 136.99 million shares
This will help Orkla partially monetize its India investment while keeping control, signaling a long-term commitment.
📊 Financial Snapshot: Stability with Margin Expansion
MTR Foods has demonstrated consistent financial performance over FY23–25, with strong margin growth and cash generation.
Key Financials:
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 2,172.48 | 2,356.01 | 2,394.71 |
| Adjusted EBITDA | 312.44 | 343.61 | 396.44 |
| Adjusted EBITDA Margin | 14.4% | 14.6% | 16.6% |
| Profit After Tax | 339.13 | 226.33 | 255.69 |
| ROCE | 32.1% | 20.7% | 32.7% |
| Cash Conversion | 85.0% | 109.9% | 124.8% |
| PAT Margin | 15.6% | 9.6% | 10.7% |
Key Observations:
- EBITDA margins have expanded by over 200 bps over three years — a sign of pricing power and operational leverage.
- Cash conversion ratio of 124.8% in FY25 — well above industry averages — shows excellent working capital management.
- ROCE back at pre-pandemic highs of 32.7%, reflecting disciplined capital allocation.
Export Engine & Global Reach
In FY25, export revenues clocked INR 486.17 crore, accounting for 20.6% of total revenues. This global arm is anchored by:
- High diaspora consumption in Gulf, US, Canada
- A 22.2% market share in Indian branded spice exports
- 3 international contract manufacturing partners in UAE, Thailand, Malaysia
Eastern Condiments has been India’s largest branded spice exporter for 24 years, an impressive credential in a crowded export segment.
Distribution: Deep, Dense, and Digitally Enabled
- Retail Touchpoints: ~6,86,729 as of FY25
- Distributors: 843 | Sub-distributors: 1,800
- Modern trade: Partnerships with 31 chains
- E-commerce + quick commerce: Integrated with 6 major platforms
- Presence in 28 states and 5 UTs
MTR and Eastern together have 70.4% outlet penetration in Kerala and 67.5% in Karnataka, compared to an industry average of 30-40%, per the Technopak Report.
This dominance is built on deep grassroots-level distribution networks and decades of regional insight.
Manufacturing Infrastructure: Smart Scaling
- 9 Owned Units in India
- 1,82,270 TPA installed capacity
- 18 Contract Manufacturers in India
- 3 International CMOs: UAE, Malaysia, Thailand
Innovation, Recipe Database & R&D Edge
Over the years, MTR has built a repository of 4,000+ traditional recipes, collaborating with food historians, communities, and chefs. This has allowed the brand to:
- Anticipate regional palate shifts
- Innovate across daily staples and festive foods
- Maintain authenticity while modernizing form factors (e.g., 3-Minute Poha)
This recipe-led R&D has been a key differentiator in capturing both nostalgia and new-age convenience trends.
Strategic Backing: Orkla ASA – Stability and Synergy
Orkla ASA, with a 370-year legacy, is not just a financial investor but a strategic guardian. With over USD 6.2 billion (~INR 52,977 crore) revenue in 2024 and operations in 100+ countries, it brings:
- Best-in-class systems for governance, quality, and innovation
- Access to technology and procurement efficiencies
- Centers of excellence in marketing, IT, risk management, sustainability
Under Orkla, MTR has grown without significant debt, operated with margin discipline, and scaled both top-line and export diversification.
💡 What Makes This IPO Stand Out
✅ Brand Power: MTR and Eastern are household names with 100+ years of trust
✅ Category Leadership: Top 4 in revenue in spices and convenience foods (FY24)
✅ Export Resilience: 22.2% market share in branded spice exports
✅ Strong Governance: Under Orkla’s Scandinavian corporate excellence
✅ High Margins, Low Debt: PAT margins at 10.7%, zero long-term debt
✅ Operational Leverage: Cash conversion >120%, ROCE >30%
⚠️ Risks to Monitor
- No Fresh Issue: Proceeds go to selling shareholders; no balance sheet benefit
- Geographic Saturation: Southern stronghold limits organic growth unless national strategy scales
- Valuation Sensitivity: Premium pricing may be demanded due to brand, which could challenge listing gains if sentiment is soft
📌 Final Take
Orkla India IPO offers a rare chance to invest in a legacy consumer brand with both regional strength and global ambition. In a market where packaged food is undergoing rapid transformation, MTR Foods is uniquely positioned with its authenticity, modern relevance, export reach, and brand equity.
If the valuation is reasonable, this could be a core long-term holding for portfolios seeking stable growth in India’s consumer staples sector — especially those betting on premiumisation, regionalization, and health-conscious convenience. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.