DSM Fresh Foods Limited, which operates the ZappFresh brand and trades on the BSE SME platform, has approved the acquisition of a 51–60% controlling stake in Avyom Foodtech Private Limited, thereby formally entering the ready-to-eat (RTE) and ready-to-cook (RTC) food categories while also strengthening its push into overseas export markets.
To execute the transaction, DSM Fresh Foods Limited will infuse approximately Rs 7.5 crore in cash through a private placement of shares in Avyom Foodtech. Consequently, the investment will result in DSM Fresh Foods holding at least a 51% equity stake in the company.
Furthermore, DSM Fresh Foods stated that it expects to complete the acquisition within the next three to nine months.
In parallel, the company may explore the induction of external strategic investors at the Avyom level through the issuance of fresh shares, subject to board approval. Through this approach, DSM Fresh Foods aims to support long-term growth while ensuring capital alignment.
As part of the broader transaction structure, Avyom Foodtech has entered into a binding term sheet to acquire the operating food processing business of Ambrozia Frozen Foods through a slump sale on a going-concern basis.
The acquisition covers around five acres of land, a fully operational food processing facility, and the associated plant and machinery. Additionally, the transaction involves the assumption of identified liabilities, including bank borrowings and trade payables. Meanwhile, the company will deploy funds in phases, in line with the Business Transfer Agreement, to maintain capital discipline and enable a calibrated operational ramp-up.
As a result, the move provides DSM Fresh Foods with immediate access to an established processed foods platform, supported by FSSAI-approved manufacturing processes and export-ready infrastructure.
The Ambrozia facility operates with a processing capacity of around 15 tonnes per day and supports a portfolio of more than 150 SKUs. These products include breakfast items such as idli, medu vada, and dosa fillings; snacks such as kebabs, momos, rolls, samosas, and burger patties; Indian fritters including pakoda and onion bhaji; as well as gravies, breads, and sauces.
Moreover, Ambrozia serves a diverse customer base comprising institutional clients and quick-service restaurants, including Hyperpure, Faasos, Jubilant, Demand Planner, and Al Kabeer. At the same time, the company maintains a strong export presence in Canada, the United Kingdom, and the UAE.
Although the business reported a turnover of around Rs 13 crore in FY25, it has historically achieved peak annual revenues of approximately Rs 16 crore, thereby highlighting the scalability of its processing infrastructure.
DSM Fresh Foods explained that the acquisition enables the company to enter the high-growth processed foods segment without the extended timelines and capital intensity associated with a greenfield expansion. Consequently, the company expects the move to complement its strengths in sourcing, quality control, cold-chain logistics, and distribution, while also enhancing unit economics through value-added products.
Commenting on the development, Deepanshu Manchanda, Managing Director of DSM Fresh Foods Limited, said the transaction marks a pivotal moment for the company.
“This acquisition represents a strategic inflection point in DSM’s evolution from a fresh foods platform to an integrated, end-to-end food solutions company. By acquiring a running processed foods business with established capabilities, regulatory approvals, and export readiness, we are significantly shortening our execution timeline while maintaining capital discipline,” he said.
Avyom Foodtech Private Limited, formerly known as IEY Education Private Limited, was incorporated in 2022 and operates in the manufacturing, processing, and export of RTE and RTC products, including frozen foods, snacks, gravies, and sauces. Notably, directors of DSM Fresh Foods promoted the company.
At the same time, the acquisition builds on DSM Fresh Foods’ track record of inorganic expansion. Operating under the ZappFresh brand, the New Delhi-headquartered company focuses on sourcing, processing, and delivering meat and food products to both consumers and institutional customers.
In the first half of FY26, DSM Fresh Foods reported a net profit of Rs 7 crore, nearly three times higher than the Rs 2.4 crore recorded a year earlier. Meanwhile, operating revenue increased 43% year-on-year to Rs 95.6 crore.
Overall, the company stated that its expansion into processed foods and exports will help diversify revenue streams and strengthen its position across the food value chain.
