Orkla India Bets on Acquisitions and Quick Commerce to Drive MTR Foods' Next Growth Phase

The Quick Take

• Orkla India is pursuing an acquisition-led and quick-commerce expansion strategy for its MTR Foods brand
• The company earns approximately 21% of revenue from exports and sees free trade agreement opportunities as a key growth lever
• Quick commerce partnerships with Swiggy Instamart, Zepto, and Blinkit represent a structural distribution channel shift for branded FMCG

Orkla India, the Norwegian FMCG major's Indian subsidiary and owner of MTR Foods, is charting an acquisition-driven growth strategy combined with aggressive quick commerce channel expansion to maintain and accelerate market share. NDTV Profit reported that the company—which ranks among India's largest exporters of branded spices—sees its 21% export revenue share as a foundation for further international growth, particularly as India moves closer to free trade agreements with key markets including the UK, EU, and GCC countries. MTR is a heritage brand with strong recall in South Indian cuisine that is being repositioned for national and international scale.

The quick commerce bet is strategically significant because platforms like Blinkit, Zepto, and Swiggy Instamart have emerged as the fastest-growing distribution channel for branded food products in Indian metros. For Orkla/MTR, quick commerce offers a premium customer segment with higher average order values and willingness to pay for branded, quality-certified food products—a demographic that aligns well with MTR's positioning. The acquisition strategy likely targets regional food brands in underpenetrated categories where MTR lacks presence, following the playbook of ITC, Tata Consumer, and HUL which have all pursued bolt-on acquisitions to extend their food portfolios.

Investors in Indian FMCG should watch whether Orkla India proceeds with significant acquisitions in FY27, which would signal conviction in the India growth story at valuations that smaller FMCG brands currently command. The macro variable is India's FTA completion timeline: an India-UK FTA that reduces tariffs on branded processed food exports would materially expand MTR's addressable international market, potentially doubling export revenue contribution over a 3-5 year horizon. This would be particularly relevant for Indian diaspora markets in the UK, US, and Gulf.

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