Cremica Foods Plans Rs 600-700 Crore IPO to Fund Expansion

Cremica Foods, the Punjab-based FMCG company focused on condiments, foodservice products and packaged foods, is planning to raise Rs 600-700 crore through an initial public offering (IPO) as it looks to expand its retail presence, international operations and product portfolio.

The company is targeting the IPO for the next financial year. The proposed issue is expected to include both fresh equity and an offer for sale (OFS), with the Bector family currently holding around 90% of the business. The issue could lead to a dilution of about 25-26%, chairman and managing director Akshay Bector told Fortune India.

“We are not looking at a very big raise. We are looking at ₹600-700 crore at the IPO maximum, which should result in a dilution of about 25-26%,” Bector said in an exclusive interview.

At the proposed issue size, Cremica could command a valuation of around Rs 1,500-2,000 crore. Around half of the IPO could comprise secondary sales, while around Rs 350 crore could come through the primary issue and be deployed towards expansion.

Cremica expects to close the current financial year with revenue of around Rs 450 crore and EBITDA of about Rs 70 crore. Bector expects revenue to grow by around 20% by the end of the next fiscal year, with EBITDA projected to reach Rs 120 crore.

The company traces its origins to 1978, when Rajni Bector started the business as a backyard enterprise in Ludhiana, Punjab, producing ice cream, bread and bakery products. The business later expanded into biscuits, bakery products and condiments before being divided among the three Bector siblings.

Following a family settlement, the biscuit and bakery business was separated from the condiments business, with Anoop and Ajay Bector taking over the former and Akshay Bector retaining the condiments business. Cremica Foods is now focused on condiments, foodservice and packaged foods.

International expansion is expected to form a major part of Cremica’s next growth phase. “We are on the verge of internationalizing the business,” Bector said.

The company has partnered with exporters to supply products to the UK, with initial supplies expected to begin around December-January. It is also working with international QSR customers to obtain approvals for supplies to other markets.

Cremica is targeting the UK, Middle East and Southeast Asia, with the UK and Southeast Asia already at an advanced stage. The company expects to serve around 5,000-6,000 restaurants outside India and estimates that international operations could contribute around Rs 150 crore to revenue in the first year.

Cremica is also expanding beyond its traditional ketchup, sauces and condiment portfolio. Its offerings include ketchup, sauces, mayonnaise, sandwich spreads, salad dressings, syrups, dessert toppings and gravies. The company has launched vegetarian mayonnaise and Opera crisps, while its Sandwich Mayonnaise range includes tandoori, mint, tangy pickle and korma variants.

The company operates India's largest tomato ketchup line and is the country's largest producer of ketchup portion packs, with capacity to pack around 4 million sachets a day. Following the IPO, Cremica plans to enter snacks, pickles and ready-to-eat products.

“The brand ownership with Bector Food Industries actually includes a few more categories. Snack Foods is one of them, pickles, snack food, ready to eat exported snacks, etc. We will be getting into those categories post the IPO,” Bector said.

Foodservice continues to account for the majority of Cremica’s business, with the company supplying products to QSR chains including McDonald's, KFC and Domino's. Its foodservice business dates back to 1996, when it was established as a 50:50 joint venture with Golden Roads to supply liquid condiments to McDonald's in India.

In FY26, around 70-75% of revenue came from the HoReCa (hotels, restaurants and catering) segment, while retail contributed roughly 10%.

Cremica is now looking to increase its retail contribution and reduce its dependence on institutional sales. The company currently reaches around 220,000 outlets, according to Bector, with smaller packs being used to reach middle-class households and smaller outlets. The company said it reaches around four-five million consumers a day through portion packs and brand exposure.

With the proposed IPO capital earmarked for expansion, Cremica is looking to broaden its business beyond its foodservice-led condiment operations. International markets, retail distribution and entry into new packaged-food categories are expected to form the next stage of its expansion.