In June 2025, the Indian arm of Norwegian conglomerate Orkla, the parent company of MTR Spices and Eastern, filed for an IPO. While a large company filing for an IPO is nothing new, it points to the potential the Indian branded spice market has, especially given the flurry of activity post-COVID.
There’s something interesting cooking in the Indian spices and seasonings sector. In the past 5 years, several large FMCG companies in India like ITC, Tata Consumer, Dabur, and Wipro, have been snapping up small regional players selling branded spices. It’s simple: the FMCG giants want to be on grocery shelves and kitchens in every corner of India. Given their own in-house capabilities and distribution networks, they could very well choose to go their own way and launch their own brands in this category. Instead, they’re expanding via acquisitions.
To give you a quick snapshot, in 2020, ITC acquired Kolkata-based Sunrise Foods, in 2021, Orkla acquired Eastern, in 2023 Dabur acquired Badshah Masala. Companies that are household names in the regions they operate in, but far smaller than their buyers.
But these small players have something the FMCG giants don’t: reach, loyalty and customer stickiness. This makes them an attractive proposition. And there seems to be a growth trend among some other lesser-known small cap branded spice companies as well.
The right blend: Distribution, brand recall and loyalty
Indians simply love their spices. And while a significant chunk of the sector is unorganised, with small makers who sell their products loose to local consumers, there has been a rise in branded spices and condiments in the past two decades. Urban consumers who are short on time are increasingly looking towards branded spices and condiments to make food prep easy. Plus, there’s the quality factor: while locally-processed spices are still valued, branded spices are gaining traction due to their consistent quality, hygiene, organic labels, and the availability of value-added products like pre-mixed spice blends.
- Distribution and reach: India’s spice market remains fragmented among regional producers who cater to local consumers, shaped by deep cultural and culinary diversity across states. With local tastes and cooking styles varying widely, national brands struggle to achieve pan-India dominance. Regional spice makers, on the other hand, benefit from built-in advantages—agile operations, strong local distribution networks, and long-standing consumer trust. The rise of DTC (direct-to-consumer) platforms and quick commerce apps have helped widen their reach even more. While metros see growing competition, it’s in Tier III, IV, and V cities that local brands dominate, backed by years of grassroots retail presence and brand loyalty.
- Hyperlocal taste preferences: There is no one-size fits all spice blend for India — cuisine and tastes change by geography. India’s taste palate varies massively by region, from Malvani masala in Maharashtra to Chettinad spices in Tamil Nadu. Smaller, regional spice companies are often more attuned to these micro-regional preferences and traditional recipes, giving them an edge over pan-India FMCG brands. These regional tastes (literally!) are deeply entrenched.
- Customer loyalty: Spices are not discretionary purchases like chocolate, ice-cream or dessert. They are a staple, from turmeric and Kashmiri chilli powder to blended spices like garam masala, and biriyani masala. What makes the category especially lucrative is consumer behaviour: people often stick to specific brands for specific dishes and this brand loyalty creates strong customer stickiness, especially for regional spice makers. For larger brands, this presents an attractive proposition: by acquiring smaller brands, they gain instant access to loyal customers, proven formulations, and deep-rooted regional trust — and can expand their existing portfolios without having to start from scratch with R&D and production.
In the mix: Smallcap branded spice companies at a glance
Smallcap regional players in this segment allow big conglomerates to grow inorganically without having to invest in a new brand. And some of these companies have captured investor interest along with showing patterns of good growth.
| Name | Market cap | Region | Product focus | Brands | Retail presence |
| Jhandewala Foods | 56 cr | Rajasthan | Spice mixes, poha, mangodi, and chai masala; instant mixes and more | Naman, Godhenu, Nutri Flakes, Sweet Bites, Yumm Yoo, Polki | Present in 11000+ retail stores, vast network of 500
distributors all over India |
| HOAC | 113 cr | Delhi-NCR | Masalas, whole spices | Hari Om | 15 retail units, 6 product categories |
| Srivari | 130 cr | Telangana, Andhra Pradesh | Spices, masalas, sharbati, and more | Srivari | B2B retail via suppliers, also retails through e-commerce, modern trade and DTC |
| Madhusudan Masala | 213 cr | Gujarat, Maharashtra, Goa, Telangana | Manufacturers 32+ types of ground spices, blended spices, whole spices | 77 Green | Has a presence through 12,000+ retail grocery stores, and 200+ distributors |
“Flavour of the month,” or a long-term growth story?
According to a report from CNBC-TV18, the overall Indian spice market sits at around ₹90,000 crores (2024) and growing with a CAGR of 11-12%. A 2023 report from Moneycontrol pegged the branded spice market at 30,000 crores, with the potential to capture 50% of the total market share by 2027.
The shift already seems to be underway. FMCG majors and investors have been actively consolidating: ITC’s ₹2,150 cr Sunrise deal in 2020, Orkla’s 2021 Eastern deal worth ₹1356 cr, and Dabur’s ₹588 cr Badshah stake in 2023. Plus, local legacy local brands like MDH, Catch, etc are expanding reach via organised channels and e‑commerce, as consumers move away from unbranded spices due to quality concerns. (These brands are also under the acquisition radar of some of the FMCG majors mentioned above.)
So it’s worth paying attention to the smaller players in branded spices, seasonings and food processing, with the possibility of strong growth tailwinds driven by category consolidation, shifting consumer preferences, and active M&A.
Financial Express: FMCG firms turn focus to spices for growth
Economic Times: Indian branded spice market set to reach Rs 50,000 crore in three years
Mint: Orkla India IPO: MTR Foods owner files DRHP with SEBI public offer