Why is India's spices market so hot?

India's branded spices and condiments market is bursting with flavours and every investor wants to take a taste of it. A large number of family-owned spices businesses have been on the block for the last few months. Private equity players and local FMCG players have been eyeing companies in this market. It comes as no surprise when ITC recently announced that it will be acquiring 70-year-old spices brand Sunrise Foods. This acquisition will help ITC expand its play in the spices category. ITC already sells spices under its Aashirvaad brand and is a market leader in regions like Telangana and Andhra Pradesh.

"A large number of family-owned spices brands are household names and have a huge market share in the organised, packaged spices category. We have been advising some of these family businesses who are looking to cash out," said an investment banker who did not wish to be quoted. Kolkata based Sunrise foods was also in talks with private equity firms like Carlyle and Norway based Orkla Foods.

Over the last couple of months spice brands like Kerala based Eastern Condiments and Badshah Masala have been in talks to sell out to investors or other FMCG companies. Reports indicate that promoters of Mumbai based Badshah Masala has been in talks with PE firm General Atlantic to sell their stake.