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Orkla IPO
Orkla India Ltd
₹13,900 /20 sharesMinimum Investment
Orkla IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 29 Oct ‘25 - 31 Oct ‘25 | ₹13,900 | 20 | ₹695 - ₹730 |
| Issue Size | IPO Doc |
|---|---|
| 1667.54Cr | RHP PDF |
Subscription rate
As of 29 Oct'25, 06:01 PM
| Qualified Institutional Buyers | 0.02x |
| Non-Institutional Investor | 1.53x |
| Retail Individual Investor | 0.90x |
| Employees | 3.27x |
| Total | 0.79x |
About Orkla
Founded in
1996
Managing director
Mr Sanjay Sharma
Parent organisation
Orkla India Ltd
Orkla India Ltd IPO
https://www.youtube.com/watch?v=y9nOZkQgKzs
Strengths & Financials of Orkla
Strengths
Risks
Orkla India is a subsidiary of Orkla ASA, a Norway-listed industrial investment company. Orkla ASA’s extensive experience in managing branded consumer goods businesses provides Orkla India with access to advanced governance frameworks, operational standards, and global best practices. The company claims to benefit from Orkla ASA’s Centres of Excellence in areas such as food safety, quality, sustainability, marketing, innovation, information technology, and procurement. This association enables Orkla India to adopt international benchmarks in quality and risk management while supporting its long-term focus on responsible operations and consistent growth within the Indian and global packaged food markets.
Orkla India claims to have a leading position in the South Indian packaged spices market, supported by its brands MTR and Eastern. According to the Technopak Report, it holds a 31.2 percent share in Karnataka, 41.8 percent in Kerala, and 15.2 percent across Andhra Pradesh and Telangana. The company attributes this leadership to its ability to tailor spice blends and food products to regional tastes, offering state-specific variants such as sambar masala, puliogare, and chicken porichathu to suit local culinary preferences.
Orkla India claims to have a strong focus on innovation through recipe enhancement, new product formats, and preparation methods. The company has introduced products such as MTR Minute Fresh batters, ready-to-eat sweets, and the 3-minute breakfast range to expand its convenience offerings. It also launched the “Wok N Roll” brand in 2025 to enter the Pan-Asian cuisine segment. Product innovation is supported by two ‘Cuisine Centres of Excellence’ in Bengaluru and Kochi, which, along with a 37-member product development team and a repository of over 4,000 recipes, contribute to consistent portfolio expansion.
Orkla India claims to have a large distribution network comprising 834 distributors and 1,888 sub-distributors across 28 states and six Union Territories. According to the Technopak Report, its brands MTR and Eastern are the most widely distributed in Karnataka and Kerala, with a presence in 67.5 percent and 70.4 percent of blended spice outlets, respectively, compared to an industry average of 30–40 percent.
The company exports to 45 countries through its international network and has arrangements with major modern trade chains in the GCC, the US, Canada, Australia, and New Zealand. It claims to use digital tools such as distribution management systems and automated replenishment systems to improve distribution efficiency and optimise product availability across retail and e-commerce channels.
Orkla India operated nine manufacturing facilities across India with a total installed capacity of 182,270 tonnes per annum (TPA) as of June 30, 2025. Its key units in Bommasandra, Bengaluru, are largely automated and incorporate IoT-enabled systems for real-time production tracking. The company follows a hybrid manufacturing model combining in-house and contract manufacturing to balance flexibility, cost efficiency, and recipe protection. Orkla India also operates two central distribution centres and 20 regional warehouses covering 348,640 square feet, supported by extended warehouse management software to optimise inventory management and streamline order fulfilment.
The company claims to maintain strict quality control through in-process checks, supplier audits, and holds globally recognised certifications such as the British Retail Consortium Global Standard (BRCGS) and ISO 22000 for its food safety management systems.
The company has witnessed a consistent increase in its revenue from operations. It increased from Rs 2,172.48 crore in FY23 to Rs 2,356.01 crore in FY24 and Rs 2,394.71 crore in FY25.
Orkla India’s operations are dependent on its ability to source key raw materials such as chilli, coriander, wheat products, turmeric, and cumin, along with packaging materials like laminates, corrugated boxes, metal containers, and woven sacks at competitive prices. The cost of raw and packaging materials accounted for Rs 264.69 crore (53.0 percent) of the company’s total expenses for the period ended June 30, 2025; Rs 1,174.13 crore (56.8 percent) in FY25; Rs 1,310.05 crore (62.9 percent) in FY24; and Rs 1,194.01 crore (61.4 percent) in FY23. Any adverse fluctuations in prices or supply due to climatic, logistical, or market factors could negatively affect the company’s business, financial condition, and cash flows.
The top three suppliers accounted for Rs 56.91 crore (17.5 percent) of the company’s total purchases for the period ended June 30, 2025; Rs 198.51 crore (14.9 percent) in FY25; Rs 224.4 crore (17.2 percent) in FY24; and Rs 271.53 crore (20.8 percent) in FY23. Any disruption in supplies from one or more of these suppliers could adversely affect the company’s business and finances.
A third-party-owned and operated restaurant chain holds the right to use the trade name “MTR” for its restaurant and hotel business under the MTR Trademark Agreement. While Orkla India owns the trademarks related to packaged foods and beverages, any negative publicity, food safety issues, or quality concerns linked to the restaurant chain may harm the reputation of the “MTR” brand and adversely impact the company’s business, financial condition, and cash flows.
Orkla India operated through 834 distributors and 1,888 sub-distributors across 28 states and six Union Territories, along with 42 modern trade partners and six e-commerce and quick commerce platforms as of June 30, 2025. General trade accounted for Rs 361.28 crore (77.1 percent) of the company’s total domestic sales for the period ended June 30, 2025; Rs 1,483.98 crore (79.3 percent) in FY25; Rs 1,558.52 crore (82.9 percent) in FY24; and Rs 1,499.52 crore (84.8 percent) in FY23. Inability to effectively manage this network, loss of distributors or retailers to competitors, or shifting consumer preferences toward modern trade and online channels could disrupt product reach and negatively impact the company’s sales and financial performance.
Orkla India exports its products to 45 countries and faces risks including currency fluctuations, trade restrictions, freight price volatility, and differing regulatory standards. Revenue from customers outside India accounted for Rs 119.69 crore (20.4 percent) of the company’s sales of products for the period ended June 30, 2025; Rs 486.17 crore (20.6 percent) in FY25; Rs 443.11 crore (19.1 percent) in FY24; and Rs 370.01 crore (17.3 percent) in FY23. Any adverse developments in international regulations or trade environments could hurt the company’s business and finances.
The company generates a substantial portion of its revenue from South India. It accounted for Rs 411.86 crore (70.0 percent) of the company’s revenue from the sale of products for the period ended June 30, 2025; Rs 1,655.41 crore (70.2 percent) in FY25; Rs 1,671.93 crore (72.0 percent) in FY24; and Rs 1,567.79 crore (73.3 percent) in FY23. Furthermore, eight of the company’s nine owned manufacturing facilities are located in South India. This heavy reliance on a single region exposes the company to risks associated with economic fluctuations, competitive pressures, or demographic changes in South India, any of which could significantly impact its revenue and overall financial performance.
As of June 30, 2025, Orkla India’s trade receivables stood at Rs 179.56 crore, representing 30.1 percent of revenue from operations. This is a slight increase from Rs 162.62 crore (6.8 percent) in FY25. Any delay or default in payments from distributors, retail chains, e-commerce, or quick commerce platforms could lead to reduced cash flows, lower profit margins, and have an adverse impact on the company’s financial condition.
Orkla India depends on agricultural raw materials such as chilli, turmeric, pepper, cumin, coriander, and other crop-based ingredients for its spices and convenience foods segments. Unpredictable weather patterns, including irregular rainfall, droughts, floods, and heatwaves, may lead to crop shortages, quality variations, and price volatility. Prolonged disruptions in the supply of these materials could affect production schedules, increase costs, and result in reduced margins or loss of market share, thereby adversely impacting the company’s business and cash flows.
Orkla India avails incentives under the Production Linked Incentive (PLI) Scheme for processed fruits and vegetables. The continuation and quantum of such benefits depend on meeting eligibility criteria, revenue targets, and the government’s policy decisions. In FY25, the company repaid customs duty along with applicable interest under the Export Promotion Capital Goods (EPCG) licence scheme, as it was unable to meet its export obligations from a licence obtained in 2018. Such instances highlight the risk of financial liability arising from non-compliance with scheme requirements. Such instances could adversely affect the company’s profitability, business operations, and cash flows.
The company, its directors, promoters, and key managerial personnel are involved in certain ongoing legal proceedings, including criminal and tax-related cases. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of June 30, 2025, the company had contingent liabilities of Rs 127.8 crore. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition.
Orkla Financials
*All values are in Rs. Cr
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Application Details of Orkla IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹695 - 730 | Upto ₹2 Lakh |
| Employee | ₹626 - 661 | Upto ₹2 Lakh |
| High Networth Individual | ₹695 - 730 | ₹2 - 5 Lakh |
For Orkla IPO, eligible investors can apply as Regular & Employee.