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regular-article-logo Wednesday, 17 April 2024

Tata Consumer Products announces acquisition deals of Capital Foods, Organic India

The food and beverage arm of the Tata group will acquire 100 per cent shares of these two companies that make a number of packaged and beverages on a no cash/no debt basis

Our Bureau Calcutta, Mumbai Published 13.01.24, 06:34 AM
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Tata Consumer Products Ltd (TCPL) has announced acquisitions of Capital Foods Pvt Ltd and Organic India Pvt Ltd at enterprise values of Rs 5,100 crore and Rs 1,900 crore, respectively.

The food and beverage arm of the Tata group will acquire 100 per cent shares of these two companies that make a number of packaged and beverages on a no cash/no debt basis.

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Capital Foods, which is expected to have a turnover of Rs 750-770 crore in FY24, primarily manufactures and sells chutney, masala, sauces, noodles and soups under the trademark ‘Ching’s Secret’ and ‘Smith & Jones’.

Organic Foods, which was owned by Fabindia Ltd, is engaged in the business of manufacturing and sale of organic products including tea, infusions, herbal supplements and packaged foods. They were mostly retailed through Fabindia stores. The company is expected to post a turnover of Rs 360-370 crore.

The sale process was going on for a while and it was hotly contested among many large Indian FMCG players.

“There are significant synergy benefits with the existing businesses of Tata Consumer Products in areas spanning distribution, logistics, exports and overheads. The overall size of the categories in which Capital Foods operates in is estimated at Rs 21,400 crore’’, TCPL disclosed.

“We are excited to welcome Capital Foods. We believe this is a good strategic and financial fit. The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realising cost synergies,” Sunil D’Souza, MD & CEO, TCPL said.

Shares of TCPL on Friday ended at Rs 1158.70 on the BSE, marking a gain of 3.48 per cent over the previous close.

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