iD Fresh banks on overseas markets, higher margins to become IPO-ready by Oct 2027

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Mumbai/Bengaluru: Packaged foods maker iD Fresh Food expects its international business to grow faster than its domestic operations over the next two years as competition intensifies in India’s ready-to-cook (RTC) category. In India, the company is focused on improving margins while accelerating product launches into newer categories such as snacking, aided by the rapid growth of quick commerce.

International markets currently account for nearly a third of iD Fresh’s business, with the Gulf Cooperation Council (GCC) region contributing the bulk of overseas revenue, Rajat Diwaker, chief executive officer for India operations, told Mint in an interview.

While Diwaker did not forecast how much the international business would contribute to overall revenue in the coming years, he said it is expected to grow faster than India because it is expanding from a smaller base.

“Being a relatively smaller business, we see a lot of opportunities to grow in international markets,” Diwaker said.

The company aims to go public around October 2027, but the timing will depend on market conditions, not just internal readiness, Diwaker said. iD Fresh seeks to achieve profitability levels comparable to those of India’s top-performing listed packaged-food companies before it goes public. This benchmark is set by Nestle India and Britannia Industries, which reported FY26 profit-after-tax margins of 14.52% and 13.4%, respectively.

“In terms of the profitability, we see ourselves being ready for public markets when we are able to achieve PAT where the best-in-class listed FMCG companies are,” Diwaker said.

The company has also raised prices by up to 20% on certain products to offset higher packaging costs, while keeping retail prices steady on items more sensitive to price changes.

The company operates a manufacturing facility in Ajman, UAE, and plans to expand its distribution across the UK, the US, Canada, Sri Lanka, and Singapore.

To support this expansion, iD Fresh has developed a manufacturing model under which about 95% of processing is carried out at its plants in India or Ajman, with only the final 5% completed in the destination market. The approach allows the company to scale overseas without setting up full-fledged manufacturing facilities in every country.

iD Fresh reported revenue of ₹688 crore in FY25 with a profit after tax of ₹50.8 crore, according to market intelligence platform Tracxn.

Founded in 2005 by P.C. Musthafa and his four cousins, the Bengaluru-based company has raised about $126 million from investors including Apax Partners, TPG Partners and Premji Invest. It was last valued at $491 million in February 2021, according to Tracxn.

The ready-to-cook market is growing rapidly, with the chilled batters segment in the organized segment alone expected to reach a gross merchandise value of $400 million in 2025, according to Redseer Strategy Consultants.

Large consumer goods companies have also identified the opportunity. Orkla India Ltd, which operates the MTR and Minute Fresh brands, reported ₹209 crore in revenue from its convenience foods business in the March quarter of FY26. ITC sells RTC products through its Kitchens of India portfolio, while Tata Consumer Products markets ready-to-eat offerings under the Tata Sampann Yumside and Tata Q brands.

As one of the largest players in the RTC segment, Diwaker acknowledged that new entrants gradually chip away at market share.

“We are the market leaders. Every time there is a new competitor, they gain share from the market leader. We believe more competition helps grow the category," he said.

The company has been transforming its portfolio since FY24 and plans to double its size by the time it goes public, although Diwaker did not specify a timeline. He added that new product development and adjacent category expansion are expected to become meaningful revenue contributors. New produc...