Tata Consumer Products Ltd (TCPL) has announced the signing of definitive agreements to acquire Capital Foods, the owner of popular brands Ching's Secret and Smith & Jones, as well as Organic India, a Fabindia-backed organic teas and health products maker. While the specific cost of the Capital Foods acquisition was not disclosed, sources suggest a valuation of ₹5,100 crore. TCPL will initially acquire 75% of Capital Foods, with the remaining 25% to be purchased over the next three years. Invus Group and General Atlantic will divest their stakes of 40% and 35%, respectively.
TCPL's move aligns with its strategic intent to expand its product portfolio and addressable markets in high-growth categories. The acquisition of Capital Foods is expected to enhance TCPL's pantry platform, providing a boost in areas such as distribution, logistics, exports, and overheads. Capital Foods boasts strong brands like Ching's Secret, a market leader in desi Chinese products, and Smith & Jones, catering to in-home cooking of western cuisines.
Simultaneously, TCPL will fully acquire Organic India for ₹1,900 crore in an all-cash deal. This move, consistent with TCPL's strategic goals, is aimed at expanding its product portfolio in fast-growing and high-margin categories, creating a health and wellness platform.
Sunil D'Souza, TCPL's MD and CEO, expressed confidence in the strategic and financial fit of these acquisitions, anticipating significant market opportunities in the fast-growing non-Indian cuisines segment. The deals are expected to strengthen TCPL's position and contribute to the next phase of development for these renowned brands.
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