The Indian conglomerate Tata Consumer Products announced it had purchased Capital Foods for INR 51 billion (approx. $614 million) and acquired Organic India for INR 19 billion (approx. $229 million).
Through the deal, Tata Consumer will buy 75% of the equity shareholding of Capital Foods upfront, owner of the brands Ching’s Secret and Smith & Jones, with the remaining 25% shareholding acquired within the next three years. Ching’s Secret manufactures chutneys, blended masalas, sauces and soups, while Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other Western cuisines.
This move is consistent with Tata Consumer’s strategic intent to expand its product portfolio and its target addressable market in fast growing and high margin categories.
Tata said it believes the deal is a "good strategic and financial fit" that will open up new opportunities for the company in the fast-growing non-Indian cuisines segment.
Capital Foods founder Ajay Gupta said that together, Tata and Capital Foods will be able to “create a multinational culinary brand that includes multiple food categories.”
Tata Consumer also announced that it had signed definitive agreements to acquire up to 100% of the issued equity share capital of Organic India, a strong BFY organic brand spanning F&B and herbal and traditional supplements.
Founded in 1997, Organic India supplies more than 40 markets, including US customers at Whole Foods Market and Sprouts Farmers Markets.
This move is set to create a health and wellness platform for Tata Consumer.
“Organic India’s differentiated products and robust supply chain together with Tata Consumer’s distribution strength across channels in India and specific geographies globally makes us confident of accelerating momentum in the business while improving our margin profile,”
Sunil D’Souza, MD and CEO, Tata Consumer Products, said.
Source: Foodbev Media
