Tata Consumer Products, the Indian FMCG conglomerate, has announced the acquisition of food and drinks businesses Capital Foods and Organic India for a reported combined investment of 70 billion INR ($845 million).
Tata Consumer Products said the deal was aligned with the company’s strategy to “expand its product portfolio and its target addressable market in fast-growing/high margin categories”.
The company is reportedly buying 75% of the noodle and condiments firm Capital Foods upfront, leaving the remaining 25%to be paid within three years. Capital Foods’ primary brands are Ching’s Secret, described as a market leader in chutneys, blended masalas, sauces and soups, and Smith & Jones, said to be a fast-growing brand catering to in-home cooking of Italian and other western cuisines.
Organic India, which offers a range of supplements, ghee, herbal tea and honey, will be acquired for 19 billion INR ($228 million) upfront.
The deal will allow Tata Consumer Products to expand and strengthen its portfolio as well as provide benefits related to distribution, logistics, exports and overheads, the firm said in a statement.
Source: Just Food / Business Standard / MediaBrief