Tata Consumer Products Goes Big: Acquires Capital Foods & Organic India

Tata Consumer Products (TCPL) recently announced a strategic move by entering into an agreement to acquire 100 percent equity shares of Capital Foods. The acquisition, to be executed in phases, involves a payment of Rs 5,100 crore on a no cash-no debt basis for a complete stake in Capital Foods. Additionally, TCPL will acquire 100 percent of Organic India for Rs 1,900 crore. This acquisition is part of TCPL's broader strategic plan to diversify its product range and expand its reach in the market.

Organic India, recognized for its teas, infusions, herbal supplements, and personal care items, will complement TCPL's existing portfolio. Meanwhile, Capital Foods, renowned for its instant noodles, soups, and condiments sold under the brand names Ching's Secret and Smith & Jones, will further enhance TCPL's pantry platform. The acquisition aims to tap into the burgeoning non-Indian cuisines segment, offering substantial market opportunities.

The categories in which Capital Foods operates are estimated to have a combined worth of Rs 21,400 crore, while the total addressable market for Organic India's product categories is valued at Rs 7,000 crore in India. Organic India brings a diverse portfolio of over 100 health and wellness products, spanning premium and high-growth categories that emphasize sustainable living. Capital Foods operates manufacturing facilities in Nasik, Kandla, and Vapi, contributing to the overall synergy and growth prospects for Tata Consumer Products.

News by Rahul Yelligetti