Billionaire businessman Ratan Tata’s Tata Consumer Products Ltd (TCPL), valued at Rs 108,000 crore, is set to acquire two popular brands, Capital Foods and Organic India, for a combined amount of Rs 7,000 crore. This strategic move will strengthen the Tata Group company in the fast-growing and highly competitive market.
TCPL will acquire the entire equity shares of Capital Foods at an enterprise valuation of Rs 5,100 crore. Capital Foods is the owner of the immensely popular brand Ching’s Secret. In addition, TCPL will acquire Organic India, which operates in the health and wellness category, for an enterprise value of Rs 1,900 crore. This acquisition will help TCPL expand its portfolio into the packed food segment and further establish itself as a full-fledged fast-moving consumer goods company (FMCG).
With iconic brands such as Tata Tea, Tetley, and Tata Salt under its belt, TCPL boasts a revenue of Rs 13,783 crore in FY23. This latest move aligns with TCPL’s strategic intent to enter new high-growth and attractive-margin categories within the food and beverage space.
Speaking about the acquisitions, TCPL stated, The acquisition is in line with the Company’s strategic intent of entering into new adjacent high growth/attractive margin categories in the food and beverage space.
Organic India, which is backed by Fab India, specializes in manufacturing and selling organic products, including tea, infusions, herbal supplements, and packaged foods. The inclusion of Organic India into TCPL’s portfolio will open doors to the health-conscious market segment.
This is not the first time TCPL has expanded through acquisitions. In 2011, the company acquired Bengaluru-based Kottaram Agro Foods to enhance its product offerings.
The two new acquisitions will undoubtedly strengthen TCPL’s position in the highly competitive and fast-growing market. As TCPL continues to grow under the leadership of Ratan Tata, the Tata Group company solidifies its presence as a key player in the FMCG industry.
The acquisition of Capital Foods and Organic India by TCPL is a strategic move that further diversifies the company’s product portfolio and allows it to tap into the lucrative packed food and health and wellness markets. With a renowned name like Ratan Tata at the helm, the Tata Group shows no signs of slowing down, and these buyouts serve as a testament to the group’s commitment to expansion and innovation.
As TCPL expands its reach and capabilities, consumers can look forward to a wider range of quality products and brands to choose from. With the acquisition of Capital Foods and Organic India, TCPL secures a stronger foothold in the market and solidifies its position as a leader in the FMCG industry.
