No impact seen on expansion projects

The acquisition of the MTR brand will facilitate Orkla's entry into India's food sector. Investment banker N M Rothschild vetted the deal.

Said Torkild Nordberg, executive vice president - branded consumer goods, Orkla, "With the acquisition, we will be able to assess the Indian market as a possible future growth platform for our branded consumer goods business. MTR Foods is located in an interesting, growing market. We expect to spend some time learning and assessing before any final decisions are made concerning further strategic investments here."

Sources said the deal would not come in the way of MTR's expansion plans. The company will go ahead with Europe foray. It is increasing its manufacturing capacity at its Bangalore facility.

It has recently invested Rs 10 crore to import automated machinery to modernise its production unit.

MTR is also looking at setting up a new vermicelli manufacturing unit in north India.

MTR is also a major exporter of packaged food products to the US, Europe, Gulf region and South East Asia. Its ready meals, ready mixes, spices and condiments are popular among Indian expats the world over.

Orkla's branded consumer goods business consists of Orkla Foods and Orkla Brands.