DSM Fresh Foods shares jump 11% after approval to buy majority stake in Avyom Foodtech

Synopsis: DSM Fresh Foods jumped after the board approved acquiring up to 76% of Avyom Foodtech for as much as Rs 8 crore, giving the company instant access to ready-to-eat and ready-to-cook foods, snacks, gravies, and sauces

The shares of this FMCG company, engaged in the business of fresh meat and ready-to-cook/eat non-veg products retailer, are in focus after the company made a key acquisition. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 261 crore, the shares of DSM Fresh Foods Ltd reached a day’s high of Rs 117 per share, up 11 percent from its previous day’s closing price of Rs 105.80 per share. Post its listing on the stock exchange in October 2025, the stock has plunged over 12 percent.

Acquisition and potential overview

DSM Fresh Foods Ltd, the parent of ZAPPFRESH, announced through a stock exchange filing that its board has approved to acquire a significant stake in another firm, Avyom Foodtech Pvt Ltd.

As part of this offer, the company intends to buy up to 76 percent of Avyom (in tranches) which eventually means that Avyom will be a subsidiary of the company and as part of the transaction DSM will contribute up to Rs 8 crore in cash, and the entire transaction may take 3 to 9 months to be finalised.

Avyom Foodtech Pvt Ltd is in the food processing and frozen foods sector, producing items such as ready, to, eat and ready, to, cook foods, snacks, gravies, and sauces. Through a Business Transfer Agreement (slump sale), Avyom has entered into a binding contract to acquire the operating business of Ambrozia Frozen Foods, whereby the entire business is purchased as a single package.

This gives the company enormous benefits, as Ambrozia already owns a functioning factory and hence DSM is not required to construct everything from scratch (greenfield expansion), which would save at least 12-18 months for the company. The factory measures approximately 30,000 sq ft, features 4 production lines, and is FSSAI certified and export-ready. Ambrozia’s business generated close to Rs 13 crore turnover in FY25 and is presently operating at around Rs 16 crore turnover per annum.

DSM further disclosed that its promoter, Deepanshu Manchanda, will also put in around Rs 2 crore in Avyom at the same valuation, and Avyom will issue a 5 percent sweat equity to Manchanda (sweat equity is the value of non-monetary contributions, like time, effort, and skills, invested into building an asset or business).

The objective of the acquisition is to strengthen DSM Fresh Foods’ presence in the food processing and allied sector by making a strategic investment in Avyom Foodtech through a preferential issue of equity shares.

This deal is also a related party transaction because the promoters and some directors are common to both DSM Fresh Foods and Avyom Foodtech. However, DSM said the investment will be done fairly on an arm’s length basis, meaning at normal market terms.

Management Comments

Mr Deepanshu Manchanda, MD of DSM Fresh Foods Limited, said: “The execution of the Business Transfer Agreement represents a critical milestone in DSM’s transformation into an integrated food solutions platform. The structured and performance-linked framework ensures capital discipline while giving the company an immediate operational control over a scalable, export-ready processed foods business. This positions us strongly to build a meaningful RTE and RTC vertical over the coming quarters while enhancing long-term shareholder value.”

Financial and other highlights

The revenue from operations for DSM Fresh Foods stands at Rs 96 crores in H1 FY26 compared to H1 FY25 revenue of Rs 67 crores, up by 43 per cent YoY. Additionally, on a QoQ basis, it reported a staggering growth of 50 percent from Rs 64  crore.

Coming to its profitability, the company’s net profit stood at Rs 7 crore in H1 FY26, up from Rs 2 crore in H1 FY25, representing a staggering 250 per cent YoY growth. However, on a QoQ basis, it reported a net profit of Rs 7 crore, which is flatish.

DSM Fresh Foods Ltd, the parent of ZAPPFRESH, offers fresh meat and food online, like chicken, mutton, and seafood, along with ready-to-cook and ready-to-eat choices, with a strong emphasis on hygiene, carefully select their sources, and ensures everything stays fresh. 

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