These strategic acquisitions underscore Tata Consumer’s commitment to diversification and innovation in response to changing consumer preferences and market dynamics.
In a significant move to strengthen its position in the rapidly evolving consumer goods market, Tata Consumer Products Limited has recently announced the acquisition of two prominent brands – Capital Foods and Organic India. To subscribe please click tau.id/2iy6f and access our live channel.
Tata Consumer Products Ltd (TCPL) on Friday announced acquisitions of Capital Foods (Ching’s Secret and Smith & Jones), which owns the popular Ching’s Secret brand, and Fab India-backed Organic India for a combined enterprise value of Rs 7,000 crore i.e. Rs. 5,100 crores and Rs. 1900 Crores respectively.
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The Tata Group arm TCPL acquired 100 per cent equity shares of Capital Foods, which owns brands like Ching’s Secret and Smith & Jones, at an enterprise valuation of Rs 5,100 crore. The latest buyouts will bolster the Tata Group company in the fast growing and highly competitive market.
The company has entered into a share purchase agreement (SPA) with Organic India (FabIndia’s Wellness Beverage segment) for an all-cash deal valued at Rs 1,900 crore (on no cash, no debt basis), along with an additional earnout for the shareholders linked to the 2025-26 audited financials of the company.
Tata Consumer Products said in its press release that Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other Western cuisines. Capital Foods has either Number 1 or Number 2 positions in five large categories, adding the overall size of the categories in which it is estimated at Rs 21,400 crore.
Sunil D’Souza, MD & CEO, Tata Consumer Products further quoted in the release that, The strong Capital Foods and Organic India brand recall of coupled with our operational strength across channels, makes us extremely confident of driving topline growth and realising cost synergies. This transaction will accelerate momentum in our business and is margin accretive to our business.
TCPL – which owns iconic brands such as Tata Tea, Tetley and Tata Salt – had a revenue in FY23 of Rs 13,783 crore. In 2011, TCPL acquired Bengaluru-based Kottaram Agro Foods for Rs 155.8 crore to expand its product portfolio.
