DSM Fresh Foods, a technology-enabled fresh foods platform that operates under the brand Zappfresh, is set to acquire 51% stake in Avyom Foodtech to enter the ready food solutions segment, including ready-to-eat (RTE) and ready-to-cook (RTC) categories, along with expansion into overseas export markets.
The acquisition will be carried out through a cash infusion of approximately ₹7.5 crore by DSM Fresh Foods by subscribing to the shares of Avyom Foodtech through preferential allotment, resulting in the acquisition of a 51% equity stake in AFPL.
In addition, the company may explore the induction of external strategic investor(s) through the issuance of fresh shares in AFPL, subject to approval by the Board. This structure is intended to ensure strong alignment between the operating management and long-term capital partners while supporting the company’s strategic growth objectives.
As part of the transaction, Avyom Foodtech has entered into a binding term sheet with Ambrozia Frozen Foods to acquire, on a going-concern basis through a slump sale, Ambrozia’s operating food processing business, together with identified assets and liabilities. The acquisition includes approximately five acres of land, a fully operational food processing facility, and associated plant and machinery, with associated liabilities such as bank borrowings and trade payables being assumed.
Funds will be deployed in a phased manner in line with the Business Transfer Agreement (BTA) over a period. This structured deployment ensures capital discipline while supporting a calibrated operational ramp-up.
Founded in 2022 by Deepanshu Manchanda and Priya Aggarwal, Avyom Foodtech is engaged in the production of frozen and ambient food items, snacks, gravies, sauces, and other allied preparations.
Deepanshu Manchanda, Managing Director, DSM Fresh Foods, said, “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. The transaction accelerates our entry into high-growth RTE and RTC categories and complements DSM’s core strengths in sourcing, quality control, cold-chain logistics, and distribution. It provides a strong foundation to revive and scale value-added food offerings, improve unit economics, and build a durable processed foods vertical that enhances long-term stakeholder value.”
